Why Costco's Food Court Was Once Called 'Cafe 150'

Becoming a member at Costco grants you access to the store and its many amenities, like the beloved warehouse food court, but it takes insider knowledge to truly learn all of the chain's secrets. Like learning how to navigate its archaic cake ordering system, there are some facts about the food court only true fans know. If Costco trivia existed, the question, "What did the food court used to be called, and why?" would surely stump all but a few diehard warehouse shoppers. The answer: In the early years of Costco, its food court was called "Cafe 150," named for the $1.50 food items it sold. 

A year after the first Costco opened in 1983 in Seattle, a San Diego Costco began selling hot dogs out of a cart placed in front of the store. While Costco's food court has been selling its own Kirkland Signature all-beef hot dogs since 2008, back then, they were selling Hebrew National's 100% kosher beef franks. This was the start of what eventually became Cafe 150 in the 1990s — the warehouse's first version of its food court, selling $1.50 hot dogs, pizza, and other items. The expansion of Cafe 150 from a hot dog stand to a food court coincided with Costco's 1993 merger with Price Club, a pioneer of the members-only warehouse concept. 

Costco's food court is a popular stop for shoppers looking to relax after a day of bulk shopping. After breaking the bank on groceries and household items, it feels good to get a cheap meal before going home. Amazingly, although Cafe 150 is now just called "the food court," the Costco hot dog combo has remained $1.50 to this day. The combo includes a gigantic ¼-pound all-beef hot dog and a 20-ounce soda. 

The $1.50 hot dog is frequently referred to as a loss leader, an item sold below production cost that is intended to attract customers to the store (to purchase other, more profitable products). According to 425 Business, Costco's CEO Craig Jelinek revealed that when he tried to tell the warehouse co-founder and former CEO Jim Sinegal that they were losing money on the hot dog, Sinegal replied, "If you raise the effing hot dog, I will kill you. Figure it out." It seems safe to say the price of the iconic hot dog is a serious matter.

If the hot dog combo kept up with inflation, it would cost $4.55 in 2025. In 2023, the warehouse sold around 200 million hot dog combos, as well as 137 million of its popular $4.99 Costco rotisserie chickens. Incredibly, Costco's hot dog sales far outnumber hot dogs sold in all Major League Baseball stadiums, which sell a total of around 20 million hot dogs per season.