Why Costco's Food Court Hot Dog Is An Even Better Deal Now Than When It First Debuted

Wholesale warehouse chain Costco has many attributes that contribute to its worldwide fandom. Consistently low prices on bulk groceries and home goods, cheap gas, and a reputation for positive corporate culture are just some of the reasons loyal shoppers choose Costco, even over other bulk retailers such as Sam's Club. But one reason stands out in particular: The legendary Costco food court, which famously features pizzas, ice cream sundaes, chicken bakes, and, at the center of the whole operation, an iconic $1.50 hot dog and soda combo meal that has remained shockingly affordable for decades.

That's right; since the 1980s, customers have only had to shell out $1.50 for a hot dog and a soda, even as inflation has caused costs to rise on pretty much everything else. True Costco hot dog lovers know to credit the longevity of this deal to co-founder Jim Sinegal, who, according to former CEO Craig Jelinek, told Jelinek he was never to raise the cost of the combo under any circumstances. Supposedly, his exact words were (via 425Business), "If you raise the effing hot dog, I will kill you."

But its inflation-proof price isn't the only reason this deal has gotten better with age. Once the company switched to producing its own hot dogs for the food court, they actually got about 10% larger in size. This means that, while other products have gotten smaller while their prices get higher — a phenomenon known as "shrinkflation" — Costco has managed to pull off the reverse with its famous combo.

While the price of Costco's beloved hot dog and soda combo has stayed marvelously consistent over the years, some things have changed. For much of the deal's existence, Costco hot dogs (both at the food court and in stores) were supplied by the well-known kosher brand Hebrew National. However, it eventually became financially unsustainable for the company to purchase its wieners from an external source, especially because the cost of kosher meat was rising. In 2009, it officially made the switch to Kirkland hot dogs produced in its own meat processing facility, eliminating supply chain costs and helping keep prices as low as ever.

This is when the hot dogs got bigger and Costco customers the world over breathed a sigh of relief, knowing their precious food court combo wasn't going anywhere. But this isn't the only way the Costco hot dog deal has changed over time. The soda included in the combo has also increased in size from 12 ounces to 20 (plus free refills). Originally, Costco food courts stocked the soda machines with Coca-Cola products, but, in 2013, the company switched to Pepsi sodas to cut costs. As of 2025, however, Costco food courts are officially making the switch back to Coke, delighting many fans while disappointing those who prefer Pepsi. Even with these product brand changes and size adjustments, the spirit of the $1.50 hot dog and soda combo has remained intact for over 40 years — bucking conventional business practices and attracting a cult following all the while.