It is notable for its steady price and cult following as a combo deal with a soda at North American locations since its introduction in 1984.
As of 2018, Costco sold a yearly average of 135 million hot dogs,[4] more than every Major League Baseball stadium combined.
[21] In 2009, the Seattle Times asked Costco co-founder (and then-CEO) Jim Sinegal, "If [the price of the hot dog] ever goes up, what will it mean?"
[25] In 2024, Ron Vachris, Jelinek's successor, was reminded in an interview about Sinegal's now-famous quote about raising the price of the Costco hot dog.
[24] Several explanations exist as to why Costco chooses to continue to sell its hot dog combo at an unusually low price point.
"[22] According to David Fuller, assistant vice president of publishing, "Costco wanted to prove that a business can operate on a fair markup and still pay all of its bills.
"[26] Some commentators and employees have called the hot dog a loss leader, drawing in enough customers to compensate for lost profits.
[27] Costco CFO Richard Galanti did not directly confirm or deny this theory, but commented that "Needless to say we aren't making a lot or any" profit on food court products.