Costco co-founder and former CEO Jim Sinegal famously told current CEO Craig Jelinek, "If you raise the effing hot dog, I will kill you. Figure it out," when Jelinek wanted to increase the price of the $1.50 hot dog and soda combo due to rising costs. This quote highlights the importance of the legendary $1.50 price point as a customer loyalty magnet, with Costco instead innovating with their own Kirkland brand and soda machine changes to keep costs down, turning the hot dog into an iconic loss leader.
What did the CEO of Costco say about the hot dog price?
We are losing our rear ends." According to Jelinek, Sinegal replied, "If you raise the effing hot dog, I will kill you. Figure it out." Instead of raising the price, Jelinek instead decided to switch from Coca-Cola products to Pepsi products to keep the combo at $1.50.
As Jelinek recalled in a 2018 interview, “I came to [Jim Sinegal] once and I said, 'Jim, we can't sell this hot dog for a buck fifty. We are losing our rear ends. ' And he said, 'If you raise the effing hot dog, I will kill you. Figure it out.
Costco's controversial new policy, introduced in mid-2025, grants exclusive early shopping hours (9-10 a.m. weekdays/Sundays, 9-9:30 a.m. Saturdays) to its higher-priced Executive Members, causing backlash from standard members who felt excluded and facing strict enforcement starting September 2025. While some members canceled due to the perceived unfairness and inconvenience, the policy aims to reward top-tier members, boost renewals, and increase high-margin sales, with Costco planning further benefits for 2026.
Discontinued in 2018, Costco said it was removed to simplify the menu and make room for healthier options. It didn't help matters that the lack of sales of the Polish hot dog (compared to the all-beef dog) reflected a clear customer preference. Despite this, the discontinuation of the Polish dog caused public outrage.
Labor cost is usually the biggest expense. So even if they sell a lot of hotdogs, by selling them so cheap it doesn't make enough to pay the staff so they have to cover that cost from somewhere else.
Costco Wholesale Corp. and Diamond Pet Foods Inc. agreed to pay $2 million to settle a class action lawsuit over dog food that caused a salmonella outbreak that sickened an untold number of pets and dozens of people who handled the food.
here's the secret meaning behind Costco price tag. if you ever noticed an asterisk in the corner, that means the item will no longer be restock. if it ends in 69, 89 or 7. that means Costco got a special. low cost deal from the manufacturing.
MAGA is boycotting Costco after retail giant sues Trump admin over “unlawfully collected tariffs” (Daily Dot) SUMMARY: Costco has taken the Trump administration to court over tariffs it argues were imposed illegally, and the MAGA crowd is furious about it.
Costco's hot dogs are made from 100 percent beef which translates directly into its taste. Plus, it's served on a soft sesame seed bun and customizable with relish, onions, ketchup, and mustard in the food court.
“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.
James D Sinegal is the Director of Costco Wholesale Corp and owns about 1,279,536 shares of Costco Wholesale Corp (COST) stock worth over $1.2 Billion.
How much does Costco's CEO make? Vachris made a total salary of $13.9 million in 2025, according to the company's filings with the Securities and Exchange Commission. The $13.9 million number is made up of his annual salary, as well as other awards and incentives.
Looking ahead, Galanti said he also has plans to spend more time with family and travel. There is one thing that he hasn't loved, and that is the increased regulations that public companies must grapple with.
But why are they so restrictive on who can be a member? To be a Costco member you must work in banking, education, healthcare, insurance, or emergency services. So 80% of the public are ineligible to shop at Costco.
Costco had a pretty good run this past fiscal quarter, according to the company's earnings call. Specifically: Comparable sales rose 6.4% Membership fee income rose 14%
The least busy days at Costco are typically mid-week (Tuesday, Wednesday, Thursday), especially during weekday mornings right at opening or mid-afternoon (around 2-4 PM) after the morning rush but before the after-work crowd, with evenings near closing also being good options to avoid weekend chaos. Weekends, especially Saturdays, and weekdays from 4 PM to 7 PM are usually the busiest times to avoid.
At Costco, a price ending in $.99 means it's the full, regular price, no further discount; it's a great deal but not a clearance markdown, whereas prices ending in $.97 are clearance, $.00 or $.88 are manager specials (returns/discontinued), and $.49/.79 are manufacturer deals, indicating you can save more by understanding these codes.
Costco's new rule starting September 1, 2025, gave Executive Members exclusive early access, allowing them to shop an hour earlier (9 AM - 10 AM weekdays, 9:30 AM - 10 AM Saturdays) before doors opened to all members at 10 AM, enforcing a policy after a grace period to reward their highest-paying customers, though it sparked significant member backlash and debate over fairness.
On Valentine's Day 2013, Tiffany and Co. sued Costco, alleging that Costco was infringing the Tiffany trademark by using it to market a certain style of diamond engagement ring.
The biggest reason is because of health codes. While Costco looks different than your average grocery store and sells a wide variety of products, it still sells food—and lots of it. And the bottom line is that allowing non-service animals into an establishment that sells food is against the law.
