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Costco's new CFO makes major announcement about store's beloved $1.50 hot dog deal
The chief financial officer (CFO) of Costco, Gary Millerchip, has spoken up about the store's long-standing hot dog deal.
Millerchip, who became Costco's CFO in March 2024, revealed the retail store chain's plans for the $1.50 frank and soda combo - a topic that has piqued the interest of customers and economists alike as sky-high inflation continues to raise the price of everyday goods.
CNN reporter Nathaniel Meyersohn created an X post on May 30 revealing what Millerchip had to say about the future of the beloved combo.
'Costco’s new finance chief today: "I also want to confirm the $1.50 hot dog price is safe,"' Meyersohn tweeted.
Previous suggestions that the hot dog price may be increased led to death threats from the former CEO - but new finance chiefs often come with new strategies and cost-cutting efforts.
Costco's new chief financial officer (CFO) Gary Millerchip confirmed o May 30 that the $1.50 price for its hot dog and soda combos will not change
CNN reporter Nathaniel Meyersohn leaked the news in an X posted he created yesterday. Millerchip was announced as Costco's new CFO in February 2024
Millerchip's announcement regarding the status of Costco's hot dog and soda combo comes just one month after its employees began a crackdown on customers' access to the stores' food courts, and as other food chains field complaints that once-affordable fast food has become a luxury.
Costco's $1.50 hot dog and soda combo is a popular meal deal at the retail store chain's food courts, and its price has stayed the same since 1985.
The decision for the retail chain to not change the price is what R5 Capital retail analyst Scott Muskin told ABC 7 was 'branding' and a way of reminding customers of what Costco is.
However, Costco's former CEO, W Craig Jelinek, recalled a conversation with another one of the chain's previous CEO's James Sinegal about the status of the combo prices.
'I came to (Sinegal) once, and I said, "Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends," Jelinek said during a 2018 interview with 425 Business.
'And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out."'
The company decided to figure it out and it seemingly worked in its favor since former CFO, Richard Galanti, claimed that the company sells 130 million hot dogs a year in 2022.
Despite this, the company still decided to crack down on access to its outdoor food courts, which began in its locations on April 8.
The $1.50 hot dog and soda combo has been a popular meal deal at Costco locations for nearly 40 years and its price has not changed since 1985
One of the new rules that led social media users to start heated debates on X was that Costco employees would need to request to see a customer's membership card before they allow them to make a food court purchase.
Costco locations with food courts even posted signs explaining what customers needed to do to buy something from one of its food courts - purchase a membership.
The company offers two different memberships that potential customers can purchase on their website.
Anyone who becomes a Costco Gold Star Member will receive two membership cards, a 100 percent satisfaction guarantee, and the option to shop online or at any of its store locations for $60 a year.
Those who wish to receive more benefits can become Costco Executive Members, which includes service discounts and an annual 2 percent award.
One downside for customers is that the Executive membership will cost a whopping $120 a year.
X users have praised the continuance of the hot dog and soda combo, and one person called it 'the most stable commodity on Earth' in a tweet,
Others have been focused on the food court situation, with one person claiming in a tweet that their nearest location still allows non-members to eat there.
The combo price confirmation came just one month after the company began a crackdown on access to Costco food courts
New rules were implemented at Costco food court locations on April 8, requiring employees to ask for membership cards before allowing a guest to purchase items
'Costco doesn't make money off the food court, the hot dog being the best example,' an X user wrote yesterday.
'The fact that a grocer can afford to draw in customers doing that while making profits in other areas doesn't mean it's a restaurant.'