Costco CEO addresses whether price of cult favourite hot dogs is 'going up'

Costco has addressed one of the most talked-about questions surrounding its food court, after the company’s chief executive appeared in a new social media video discussing the price of its iconic hot dog.

For years, the retailer’s $1.50 hot dog and drink combo has attracted near-legendary status among shoppers, largely because the price has remained unchanged despite decades of inflation and rising food costs.

That long-running reputation has turned the item into more than just a cheap lunch, with any suggestion of a price rise quickly drawing attention online.

Now, however, Costco appears to have responded directly to that speculation in a new clip on Instagram, which shows the company’s CEO, Ron Vachris, endorsing the deal while making clear where he stands on its future.

When appearing in a Costco store, getting one of the famous dogs, and sitting down to eat, the key question he’s there to answer pops up: “Is the price of the hot dog going up?”

Transparently, he delivers the good news, answering: “The hot dog price will not change as long as I’m around.”

What’s more, to maintain that the Costco favourite is still worth buying, when asked ‘what word best describes the hot dog?’, Vachris replied: “Amazing. Amazing quality. Amazing value”, before taking a sip of his Coke.

The remarks will likely reassure Costco customers, many of whom view the hot dog combo as one of the company’s most recognisable products.

The item has held the same price since 1985, becoming a symbol of the retailer’s commitment to value. Its status has only grown over the years, helped by repeated stories about how firmly Costco leadership has defended the price point.

Previously reported comments made by former Costco President and CEO Craig Jelinek about a conversation with co-founder Jim Sinegal, who was said to have taken a hard line on any increase, put the budget-friendly meal in the spotlight.

He said: “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.’"

"That’s all I really needed. By the way, if you raised [the price] to $1.75, it would not be that big of a deal. People would still buy [it]."

“But it’s the mindset that when you think of Costco, you think of the $1.50 hot dog."

Costco’s latest video suggests that mindset remains firmly in place — with Vachris even taking a bite near the end of the clip, saying "That's $1.50 well spent."