All hail the best food deal out there. Photo: Kelly Tyko/Axios
As grocery bills keep climbing, a few brands are clinging to nostalgia-priced staples — like Costco's $1.50 hot dog combo and AriZona's 99¢ can of iced tea.
Why it matters: These inflation-proof items are more than just cheap eats — they're deliberate brand strategies.
The big picture:Food prices increased by 23.6% from 2020 to 2024, outpacing overall inflation of 21.2% during that period, according to the U.S. Economic Research Service. But some companies are keeping items inflation-proof.
Case in point: Costco's combo meal has been $1.50 since the Issaquah-based company first placed it on the food court menu in 1985.
The wholesale club's combo meal and rotisserie chicken are "loss leaders" — examples of products with thin or even negative margins designed to lure customers inside.
The idea is that shoppers will splurge on other, higher-margin items once they're in the door.
Zoom out: In a similar vein, Olive Garden is putting its Never Ending Pasta Bowl back on the menu at $13.99 — unchanged for the fourth straight year.
