Costco updates its $1.50 hot dog combo — without raising the price
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Costco food court ordering kiosks at the Coral Springs, Florida, club show the $1.50 hot dog combo with a choice of soda or bottled water. Photo: Courtesy of Marcia Tyko
Costco is now letting shoppers swap soda for bottled water in its iconic $1.50 hot dog combo — a small change that could appeal to more health-conscious customers.
Why it matters: The hot dog combo — introduced more than 40 years ago — is one of retail's most famous fixed-price deals, holding at that price through decades of inflation.
- The new water option could quietly make the deal cheaper for Costco — while giving customers a different kind of value: more choice, not more volume.
The big picture: Costco has long protected the $1.50 price — even as costs rise and small changes to the combo draw outsized attention from shoppers and executives alike.
- Costco sold more than 245 million hot dog combos in fiscal year 2025 — underscoring how central the item is to its value proposition.
- The hot dog combo is widely seen as a loss leader, a product Costco keeps cheap to drive traffic and reinforce its value reputation.
- "The hot dog price will not change as long as I'm around," CEO Ron Vachris said in a recent viral video — amid a wave of CEOs going viral for eating their own products.
Yes, but: To keep it that way, the company has tweaked some things around it — tightening food court access in 2024 and switching soda suppliers from Pepsi to Coca-Cola in 2025.
What they're saying: Soda sales are declining nationwide as consumers shift toward healthier options, said Neil Saunders, managing director at GlobalData. "In many ways it's an enhancement to the deal as people have more options."
- "I think this is more about offering healthier options for customers as not everyone wants to drink soda anymore," retail analyst Bruce Winder tells Axios.
Yes, but: The water option could help Cosco's margin on the combo too.
By the numbers: Fountain soda sells for 79 cents on its own — and comes with free refills.
- Kirkland bottled water is 25 cents, single-serve, no refills.
- Unlike soda, Kirkland bottled water is a Costco private-label product — giving it tighter control over costs and supply.
State of play: In some Costco clubs, both soda and water now appear as $1.50 combo options — though signage hasn't been updated everywhere. Axios spotted the option on ordering kiosks at a South Florida location.
The bottom line: Costco didn't raise the price of its $1.50 hot dog combo. But it may have just made it a little cheaper to keep.
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