Costco chief says $1.50 hot dog combo will stay put

Costco’s top executive has again reassured shoppers that one of the chain’s best-known bargains is staying at $1.50. The pledge matters because the hot dog-and-soda combo has become a rare fixed price in a period when restaurant and grocery costs have climbed.

Ron Vachris, Costco’s president and chief executive, said in a March Instagram video posted by the company that the price of the hot dog deal would remain unchanged while he leads the retailer. “The hot dog price will not change as long as I’m around,” Vachris said in the video, according to Fortune.

The combo has been part of Costco’s food court identity for about four decades, Fortune reported. The company has repeatedly used the offer as a signal to members that it will protect certain low prices even as other retailers and restaurant chains adjust menus in response to higher costs.

A long-running promise

Costco executives have made similar assurances before. Richard Galanti, the company’s former chief financial officer, told Fortune that the hot dog deal and Costco’s $5 rotisserie chicken were “foundational” to the warehouse chain’s success.

Galanti also told The Wall Street Journal in 2022 that the $1.50 hot dog price was “sacrosanct” and would stay fixed “forever,” Fortune reported. In 2024, Gary Millerchip, who succeeded Galanti as finance chief, said the price was “safe,” according to Fortune.

Costco has also worked to keep the drink portion of the combo low-cost, Fortune reported. When its Coca-Cola contract came up for renewal about a decade ago, the company switched to Pepsi to control prices, though Fortune said Costco is now back to serving Coke products.

Food prices add weight to the message

The promise comes as food-away-from-home prices remain elevated. The U.S. Consumer Price Index showed that prices for meals outside the home rose about 4.1% from December 2024 to December 2025, according to the Bureau of Labor Statistics data cited by Fortune.

Fortune connected the continued popularity of the Costco deal to broader pressure on lower- and middle-income consumers. A Moody’s analysis of Federal Reserve data found that lower-income earners have spent only in line with inflation since the pandemic, while real spending growth has come from the top 20% of households, according to Fortune.

Moody’s chief economist Mark Zandi wrote in a 2025 report that spending for the bottom 80% of earners, defined as households making less than about $175,000 a year, had only kept pace with inflation since the pandemic, Fortune reported. Zandi said higher-earning households, especially the top 3.3%, had fared far better.

Bank of America Institute data cited by Fortune showed that spending among the highest-income consumers rose 4% year over year in November 2025, nearly four times the pace of the lowest-income bracket.

Other chains have responded to cost-conscious shoppers with value offers, Fortune reported. McDonald’s extended a meal deal and launched McValue offers, Wendy’s added $4, $6 and $8 mix-and-match tiers, KFC introduced a $5 item, Taco Bell offered Cravings Boxes starting at $5, and Sweetgreen promoted $10 bowls for loyalty members.

Costco’s advantage is that its offer is not framed as a temporary promotion. According to Fortune, the company has kept the hot dog-and-soda combo at $1.50 since 1985.

This story draws on original reporting from Fortune.