Costco Boss Confirms Hot Dogs Will Stay the Same Price Amid Inflation
The three constants in life are death, taxes, and the price of the Costco hot dog. As inflation impacts the vast majority of the economy, Costco CEO Craig Jelinek wants to reassure the masses that under no circumstance will the price of the food court frank be raised from its standard $1.50 price.
In an interview with CNBC Monday, the price club boss was asked about the legendary pricing for the item. When asked if the price would eventually be a casualty to the worsening economy, Jelinek held strong offering a simple one word answer: "No."
With the hot dog staying stagnant at its $1.50 price, Costco has opted to instead raise the prices of some its other food court items. The price of the company's chicken bake was bumped up a dollar earlier this month, now costing hungry customers $3.99. The price for a 20-ounce soda also increased to 69 cents. The fountain drink was previously available for 59 cents per cup.
The price of the Costco hot dog has become an urban legend of sorts, especially after going mega-viral in 2018 for comments made by Jelinek at a speaking event. During an appearance as a keynote speaker at a chamber of commerce gathering in Washington state, the executive revealed he predecessor threatened to kill him if the price was raised.
"I came to (Jim Sinegal) once and I said, 'Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends.' And he said, 'If you raise the effing hot dog, I will kill you. Figure it out,'" Jelinek said during the event (via 425business). "That's all I really needed. By the way, if you raised (the price) to $1.75, it would not be that big of a deal. People would still buy (it). But it's the mindset that when you think of Costco, you think of the $1.50 hot dog (and soda)."
To help keep costs low, Jelinek went on to reveal that Costco has opened two hot dog-making plants across the United States.
"By having the discipline to say, 'You are not going to be able to raise your price. You have to figure it out,' we took it over and started manufacturing our hot dogs," he added. "We keep it at $1.50 and make enough money to get a fair return."