In 2022, Costco’s CFO Richard Galanti said that the $1.50 hot dog and soda combo would be around “forever,” according to Business Insider.
But this week, in an interview with Bloomberg, he changed the “forever” to “a while.”
Galanti, 67, is leaving Costco after nearly 40 years after being named the company’s chief financial officer in 1985. He is being replaced by Kroger CFO Gary Millerchip.
When asked about the popular meal deal, Galanti, who stood firm on the bargain pricing of a hot dog and drink two years ago, told Bloomberg, “It’s probably safe for a while.”
The less-than-$2.00 meal started in 1985, the same year as Galanti. Business Insider pointed out that while the menu at the Costco counter has changed, the one thing that hasn’t is the popular combination.
Gone is the churro, replaced by a $2.49 chocolate chip cookie. A $6.99 turkey sandwich is also on the menu alongside pizza, a chicken bake, ice cream sundaes and smoothies, Fox Business reported.
But why?
Business Insider says the low price point for a comfort meal allows the company to “give the customer a positive experience on their way out of the store.” It also brings in customers for a meal before they then decide to go shopping, buying other, more expensive items.
Galanti told Fox Business last year — when inflation was much higher than it is now — that gas and travel offerings “help us be more aggressive in other areas or … hold the price on the hot dog and the soda a little longer, forever.”
Costco has 875 warehouses globally with 132 million members, Fox Business reported.
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