The $1.50 hot dog and soda combo at the Costco food court, which somehow hasn’t changed its price since the 1980s, is something of a legend, like Prometheus stealing fire, or George Santos’ resume. The loss leader has brought customers in droves to Costco’s warehouses over the years, a fact not lost on co-founder James Sinegal, who is reported to have once replied, “I will kill you,” in response to CEO Craig Jelinek’s proposal to raise the $1.50 price.
So Costco’s combo is still the best deal in encased meats you can get, right? Look out: Sam’s Club, Walmart’s membership-based warehouse brand, has entered the chat.
Sam’s Club has its own $1.50 hot dog combo. And late last year, it announced it was dropping the price to $1.38 — a whopping 12 cents cheaper! The move, while perhaps not budging anyone’s pocketbook (or Walmart’s bottom line) in any meaningful way, was certainly a symbolic gauntlet thrown in Costco’s general direction.
Sam’s Club recently reduced the price of its hot dog combo to $1.38.
(Amy Wong / Los Angeles Times)
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It also piqued my curiosity, as I grew up in a Costco family and had never tried the combo from Sam’s Club: Which combo is actually better? I headed out to Torrance one day with Food audience engagement editor Amy Wong to find out.
Our focus was primarily the hot dog combos, but we also sampled a few other hot food items that both Costco and Sam’s Club produce: pizza, churros and sundaes. (Check out our L.A. Times Food Instagram account for that bonus content!)
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Costco’s hot dog combo is advertised as a “¼-pound PLUS” (capitalization theirs) all-beef hot dog. Costco used to do an excellent Polish dog, which I would typically get over the regular dog, but it was unfortunately discontinued in order to “simplify our menu and make room for healthier options.” (My eyes are rolling a bit here: You don’t eat at the Costco food court for health reasons.)
The dog, in a soft sesame seed bun, is very good. It’s juicy, salty and has a pleasant snap — it tastes like beef, not bologna, which can be a hallmark of some inferior hot dogs (Dodger dogs, I’m looking at you). The topping selection is limited to mustard, ketchup and relish. Raw onion and sauerkraut were once available but, as with the Polish dog, have sadly fallen by the wayside. The drink selection at this location was limited to Pepsi and Diet Pepsi, Brisk iced tea, Sierra Mist and Tropicana lemonade. Pretty weak, in other words.
Sam’s Club hot dog combo.
(Amy Wong / Los Angeles Times)
The Sam’s Club combo is similarly advertised — as a ¼-pound all-beef frank — but comes with a 30 oz. soda, compared to a 20 oz. soda at Costco. The dog, in a slightly too-dry bun and which looked just a bit smaller than Costco’s, tasted virtually identical. In the toppings category, however, Sam’s Club made its move. In addition to ketchup, mustard and relish, Sam’s Club also had — hallelujah! — raw onion and sauerkraut. It also outshined Costco in the drinks department: While Sam’s Club also had Pepsi and Diet Pepsi, this location also offered Dr Pepper and unsweetened and sweetened Lipton tea.
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I don’t really want to focus too much on the 12-cent price difference. Yes, it’s symbolic, but the hot dog race should not be a race to the bottom pricewise, and I doubt many people would mind spending more for their hot dog and drink. In some ways, I would actually feel better paying a little more — $2? $2.50? — as I could then stop worrying about how on Earth these companies justify selling so much food for so little.
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Some other important details: The vibe at Costco is better. At the ones I’ve visited, there are more tables and dedicated areas to eat. At the Sam’s Club in Torrance, we struggled to find a place to sit before finally locating a single, lone picnic table a ways off from the cafe.
One other essential point: You must be a member ($60 per year) to order food at Costco. The cafe at Sam’s Club has no such requirement.
But ultimately, the toppings, essential in any emulsified meats game, were superior at Sam’s Club. Slightly dry bun notwithstanding, that and the much better drinks selection helps put Sam’s Club on top.
As a longtime Costco member, it almost hurts me to say it, but I’ve seen enough: The hot dog combo at Sam’s Club is a better deal, overall. Costco, if you bring back the Polish dog and sauerkraut, maybe I’ll reevaluate. And while you’re at it, bring back the combo pizza slice too.
Costco hot dog combo
(Amy Wong / Los Angeles Times)
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Costco has more stores across the globe, is expanding rapidly, and generally offers cheaper prices than Sam's Club does, although the latter charges slightly less for membership, has a bigger presence in the U.S., and stocks more name brands.
But Costco's $1.50 combo is a strategic decision, known as a loss-leader: The company is willing to lose money selling the hot dogs at that price as long as it helps Costco draw in and retain customers.
Walmart, the parent company of Sam's Club, is responsible for the manufacture of the Member's Mark brand. Walmart is a worldwide retailer that generates billions of dollars in revenue every year, and it's no surprise that it has the capacity to manufacture the products in-house.
Yes, that's right! Costco's best-selling item is its Kirkland Signature Bath Tissue. It sells more than a billion rolls every year, bringing in over $400 million dollars in revenue. Costco's toilet paper is thicker and more absorbent than most other brands.
While both Costco and Sam's Club offer unleaded, premium, and diesel fuels (here's how to know which you should be getting), only Costco offers Top Tier fuel. If you don't have a Costco membership, you can still find Top Tier gas at other stations. “Yes, Top Tier gas is worth the extra money,” CarFax reported.
Luckily, Costco answers this question with a 100% beef dog. Rest assured, you won't find any other meats in the chain's Kirkland Signature food court dogs. Costco used to use Hebrew National's wieners for its food court hot dogs. But eventually, the brand switched to the in-house Kirkland wiener.
“It's branding,” said Scott Mushkin, a retail analyst at R5 Capital. The $1.50 deal helps create customer loyalty, he said. “It reminds customers of who Costco is.” Costco loses money selling more than 100 million hot dogs every year, but the company offsets these losses by raising prices on other goods it sells.
The price of one of America's most popular affordable eats is not going up, at least for now. On May 30, Costco's newly-minted CFO Gary Millerchip said during the chain's Q3 2024 earnings call that the price of its iconic hot dog and soda combo will stay firm at $1.50 as it has since the 1980s.
It's all in the ingredients — or rather, lack of ingredients. Whereas most hot dogs contain a plethora of fillers and additives, Costco's Kirkland brand frankfurters do not.
And for anyone who got confused by the change, Costco assured fans it would still be offering its hot dog and soda combo for $1.50 — a price that hasn't changed since 1985. From this point, the company signaled that frank options would go back to being all-beef.
If you'd like to be on the safe side, consider consuming products cured with natural rather than synthetic ingredients. Uncured hot dogs contain only natural ingredients, which may be a safer alternative to synthetic nitrates and nitrites.
Made with only high-quality beef, these franks are not your ordinary hot dog. They contain select seasonings for an irresistible taste. These beef franks don't have any by-products, MSG, artificial colors or flavors. They're also a good source of protein, making them wonderful for creating a fulfilling meal.
In 2008, Costco began using its own hot dog factories, reducing supply chain costs. A Costco meat processing facility in Tracy, California, that had been around since 2004 began producing hot dogs in 2011, and produced both the hot dogs sold in the food court as well as smaller hot dogs sold in packs.
For members other than resellers, only purchases made within 30 days prior to a change in price and within applicable promotional item limits, are eligible for a price adjustment. Costco does not price match with other sellers. Costco does not price match Costco warehouse prices for Costco.com purchases.
When compared to other similar retailers, Costco's competitive advantage lies in its own private label, its discount prices, and its membership dues. This has provided customers with a product that they can rely on at low prices.
Sam's Club Plus memberships cost more to start than the entry-level Club membership, but for many shoppers, a Plus membership will save you more in the long run -- potentially hundreds of dollars per year.
For single people looking to save on home essentials, groceries and clothing, a Costco membership can provide substantial savings, according to Jeanel Alvarado, retail expert, founder and CEO of RetailBoss. “Depending on where the person lives, it can be much more affordable than local grocers,” she said.
Introduction: My name is Dan Stracke, I am a homely, gleaming, glamorous, inquisitive, homely, gorgeous, light person who loves writing and wants to share my knowledge and understanding with you.
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