Costco’s new CFO makes major announcement about store’s beloved $1.50 hot dog deal

Costco’s Chief Financial Officer (CFO), Gary Millerchip, has spoken out about the store’s longstanding hot dog deal.

Millerchip, who became Costco’s CFO in March 2024, revealed the retailer’s plans for the $1.50 franc and soda combo — a topic that has piqued the interest of shoppers and economists alike as skyrocketing inflation drives up the price of everyday goods continues to increase.

CNN reporter Nathaniel Meyersohn created one X message on May 30 revealed what Millerchip had to say about the future of the beloved combo.

“Costco’s new chief financial officer today: “I also want to confirm that the $1.50 hot dog price is safe,” Meyersohn tweeted.

Previous suggestions that the hot dog price could be increased led to death threats from the former CEO, but new financial leaders often come up with new strategies and cost-cutting efforts.

CNN reporter Nathaniel Meyersohn leaked the news in an X-post he made yesterday. Millerchip was announced as Costco’s new CFO in February 2024

Millerchip’s announcement about the status of Costco’s hot dog-soda combo comes just a month after employees launched a crackdown on customer access to the stores’ food courts, and as other food chains file 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 chain’s food courts, and the price has remained the same since 1985.

The decision for the store chain not to change the price, said retail analyst Scott Muskin of R5 Capital ABC-7 was branding and a way to remind customers what Costco is.

However, Costco’s former CEO, W Craig Jelinek, recalled a conversation with another former chain CEO, James Sinegal, about the status of the combo prices.

“I came to (Sinegal) one time and said, ‘Jim, we can’t sell this hot dog for fifty dollars. We’re losing our rearguard,'” Jelinek said during a 2018 interview with 425 Business.

“And he said, ‘If you bring up the damn hot dog, I’ll kill you.’ Figure it out.”‘

The company decided to find out and it seemed to work in its favor as former CFO, Richard Galanti, claimed that the company will sell 130 million hot dogs per year by 2022.

Despite this, the company decided to crack down on access to its outdoor food courts, which launched at 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 the price hasn’t changed since 1985

One of the new rules that prompted social media users to start heated debates about X was that Costco employees would have to ask for a customer’s membership card before allowing them to make a purchase at a food court.

Costco locations with food courts even posted signs explaining what customers needed to do to purchase something at one of the food courts: purchase a membership.

The company offers two different memberships that potential customers can purchase on their account website.

Anyone who becomes a Costco Gold Star member receives two membership cards, a 100 percent satisfaction guarantee and the ability to shop online or in one of its store locations for $60 per year.

Those who want to receive more benefits can become Costco Executive Members, including service discounts and a 2 percent annual incentive.

One downside for customers is that the Executive membership costs a whopping $120 per year.

X users have praised the continuation of the hot dog and soda combo, with one person calling it “the most stable product on earth” in a tweet,

Others are 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 confirmation of the combination price came just a month after the company began cracking down on access to Costco food courts

On April 8, new rules were implemented at Costco Food Court locations requiring employees to ask for membership cards before allowing a guest to purchase items

‘Costco doesn’t make money from the food court, the hot dog is the best example of that’ wrote an X user yesterday.

“Just because a grocer can afford to attract customers that way while making a profit in other areas doesn’t make it a restaurant.”