Prices are climbing across the board, but one thing hasn’t budged despite inflation and economic uncertainty: the Costco hot dog.
“The hot dog price will not change as long as I’m around,” Costco CEO Ron Vachris said in a social media post in which he ordered and ate a hot dog from one of the locations.
@nowtoronto Prices are climbing across the board, but one thing hasn’t budged despite inflation and economic uncertainty: the Costco hot dog. #Glizzy ♬ original sound – Now Toronto
The price tag includes a quarter-pound Kirkland Signature 100% beef frankfurter nestled in a sesame bun and a soda.
The price has remained unchanged since 1985 at $1.50 (Costco was founded in 1983).
The hot dog should be triple the price based on inflation
According to the Bank of Canada’s Inflation Calculator, an item that cost $1.50 in 1985 would cost $4.01 in 2026 when the average annual rate of inflation is taken into account.
Jim Sinegal, the co-founders, is famously known for not allowing any CEO’s from increasing the price of the retailer’s iconic offering. Former CEO Craig Jelinek had said Sinegal said to him, “If you raise the effing hot dog, I will kill you, figure it out.” Jelinek said that’s what prompted the in-house production of the retailer’s own hot dogs.
Costco shoppers celebrate the $1.50 hot dog
“Let’s be honest, this is thanks to Jim Sinegal. If anyone who comes after him tries to change it, he would come at them!!!” a Facebook user commented.
The price tag is fixed despite any exchange rates, which means Canadian shoppers have an even sweeter deal.
“That’s $1.50 Canadian. Even cheaper than the U.S.A.”
Some say the hot dog-soda combo is the sole reason they pay for their annual membership.
“The hot dog & soda combo was the only reason I joined Costco,” another wrote.
Some called it how it is.
“I call it ‘fishing strategy’,” a Facebook user wrote. “Fishing strategy is used when a business decides to put one or more of its items on low price or sometimes, lower than its cost, to bring customers into their stores.”
However, most don’t seem to mind.
“Best deal in town! $150 for a glizzy and a coke, they can easily charge $5 for this but they don’t,” one user wrote.
“After spending $400 on groceries, that $1.50 is a steal.”
