What The Price Of Costco's Hot Dog Combo Would Be If It Accounted For Inflation

Costco's $1.50 hot dog and drink combination is almost a reason to spring for a membership alone, because a price like that for a quarter-pound hot dog and a refillable drink is unthinkable nowadays. That price likely isn't going to change anytime soon because it's such a draw for the Costco brand. (Not to mention, the all-beef Kirkland Signature hot dog tastes terrific too.)

The company has sold that hot dog and soda combo for $1.50 since 1985 and famously hasn't changed its price since then. The cost of Costco hot dogs is so cheap because the store makes its money from other parts of its business, namely from a high volume of grocery sales, membership fees, and additional services. This model also allows the store to keep things like packaged Costco rotisserie chickens so darn cheap. 

But if you account for inflation, the price for a $1.50 hot dog and drink combo from 1985 would now cost you $4.55, according to the official inflation calculator from the U.S. Bureau of Labor Statistics. That's much more in line with what you'd expect at a fast food chain or even a hot dog cart, but when you think about just how much money you spend on a typical trip to Costco, you can probably see why Costco doesn't mind losing money on its own hot dogs.

Costco's legendary food court hot dogs were originally made by Hebrew National, but demand for the frankfurters was so high that Costco decided to go so far as to control as much of the supply chain as possible. It started making the hot dogs on its own in 2008 to keep prices down. The manufacturing plants not only provide the food courts with the $1.50 hot dogs but also the bulk packages you find in the refrigerated section of the store. So that means if you love the Costco stand hot dogs, you can take home a monster-sized pack for yourself — 36 dogs is certainly enough to feed a whole backyard barbecue.

Aside from that, you can rest assured that the $1.50 hot dog and drink deal isn't just smoke and mirrors; it genuinely is a really good deal. Because at today's rate of inflation, the thing would be just a hair over three times as much. And besides, you can think of it as that little treat when you're done shopping for the day. If the receipt for your groceries was more than you expected (hey, those Costco bakery guava rolls were an unintentional impulse buy), at least you'll always have that bargain on a hot dog and drink.