One of Costco's most famous products is the hot dog and Coke combo. Despite rising food and restaurant prices, members love that they can still get a lunch for $1.50. Some are so passionate about the offer that they've produced Costco hot dog-themed clothing.
Will the inexpensive lunch last forever? In a Bloomberg interview, Costco's outgoing CFO Richard Galanti, who leaves on March 15, discussed the company's future.
He said, "It's probably safe for a while," when asked about the food court after he left.
In a recent Progressive Grocer interview, Galanti said something similar. He added the hot dog combo and $4.99 rotisserie chicken are "likely to stay the same for a while."
These remarks indicate that hot dog combo and rotisserie chicken prices won't rise soon. However, Galanti's statement that the bargains will last "for a while" suggests price modifications are possible.A higher combination or chicken price would be a big thing at Costco.
CNN reports that the corporation has built its own hot dog manufacturing and chicken processing facility to protect against market pressures and resist price increases.
According to former CEO Craig Jelinek, Costco founder Jim Sinegal threatened to murder him if he raised the hot dog price. Work things out."
Still, Costco is facing substantial leadership changes that may influence its pricing strategy. Galanti, who has been CFO for over 40 years, is retiring on March 15, and Jelinek left at the start of the year.
Costco has also delayed hiking membership prices despite management saying it's "a question of when, not if" for almost a year. Galanti stated in December that they haven't seen the need to raise rates yet and that customers can obtain more "value" from their memberships. It's unclear if the new CEO and CFO support raising membership prices.
In a recent earnings call, Galanti joked that fee hikes "will be on his watch, not mine."Costco did not react to our inquiries about hot dog combo and rotisserie chicken price changes.