Title: Costco's Iconic $1.50 Hot Dog Price Endures Thanks to Innovative Strategies

Costco's famous $1.50 hot dog and soda combo, a beloved staple for shoppers at the retail giant's 602 warehouses nationwide since its inception in 1985, has continued to defy inflation and rising costs through innovative strategies employed by the company's leadership.

In a recent interview with CNBC's "Squak on the Street," former CEO Craig Jelinek reaffirmed Costco's commitment to keeping the hot dog price unchanged, stating unequivocally, "No." This determination to maintain the price was echoed by Costco's then-CFO Richard Galanti, who assured investors that the $1.50 tag was not in danger of disappearing any time soon.

The roots of this price pledge can be traced back to the late Costco chairman Jeffrey Brotman and co-founder Jim Sinegal, who vowed never to raise the price of the iconic combo meal. Despite inflationary pressures that would suggest a price increase of at least $4.25 according to financial experts, Costco's leadership remains steadfast in their decision.

To sustain the $1.50 price point, Costco took a unique approach by establishing its own hot dog manufacturing plants in Los Angeles and Chicago, enabling the company to sidestep the use of pricier third-party suppliers. This strategic move, spearheaded by Jelinek, proved to be a key factor in ensuring the continued affordability of the hot dog and soda combo.

As Jelinek retired last year and Galanti stepped down recently, questions arose about the future of the $1.50 price tag. However, Costco has reassured consumers that the iconic deal is here to stay, honoring the pledge made by its founders decades ago.

Most recently, a viral story emerged of an Ohio resident who exclusively dined on Costco's $1.50 hot dog and soda combo for an entire week, spending a total of about $45 on his meals. This anecdote serves as a testament to the enduring popularity and affordability of Costco's signature offering, showcasing how the retail giant's innovative strategies have allowed it to maintain the beloved price point for generations.