How Much Money Is Costco Losing On Its Hot Dogs?
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- Опубліковано 11 чер 2024
- Coscto has been doing everyone a solid for nearly 40 years - if you have been to the Cosco Food Court in he last decades, you have noticed a remarkable feat - he cos of the Costco hotdog has NEVER budged! How are they able to do this? What sort of 'anti inflation' magic is happening here? ...and how did this all begin? Come ake a trip to understand how all came to be..
#costco #hotdog #weirdhistoryfood - Розваги
Somehow, every time I go to Costco for a cheap lunch, I spend at least $400 before I get my $1.50 hotdog
me too， the hotdog is strategies to attract consumers
That’s exactly what they’re counting on!
Same but closer to $800 for us (family of 14 here)
Yeah, while I'm here why not buy more S#!t !
Rare that I can get the $1.50 dog for less than a hundred bucks.
Its like saying “How much is the car dealership losing on free coffee when I go and buy a car”
The $1.50 hog dog entices people to come and spend hundreds.
Yea and not only that saying the word “losing money” is manipulation to make you feel bad they just aren’t making all the potential profits they could be making if they raised the prices on hotdogs they aren’t losing money
costco receives x100 foot traffic a dealership does, the coffee or now a days bottled products and automated coffee makers are x10 easier to use than having to buy equipment and space for hotdog. What analogy, if you can't find good analogy then just don't say it. People who liked this comment are just as bad for thinking of this. Better comparison would be amazon kindle which they have stated they lose money on but hope for people to use it to buy more products on the kindle.
@@kinggamerz2838They are still losing money on the cost, but they do compensate with other items.
I’m really grateful for Costco. In times like these when everything is so expensive, it’s nice to have one thing that I know I can afford.
costco is pretty expensive though, poor people dont go to costco
@@dakineprotoss the one in my city has the food stand located outside, accessible without a card. So at least the hotdogs are still affordable
@@dakineprotossthis the bulk is always super pricey. The hot dogs themselves are basically edible business cards
@@MrBooone i dunno, i spent $23 on a 30-roll pack of TP last October and I'm not even halfway thru it yet
@@iampetzwatch out. Seems they're changing to all Costco, you have to have a membership to eat there.
$4.99 for rotisserie chicken + $5.00 for spring mix salad. Feed a family of 4 for $10.
Cheaper than 1 person at McDonalds now, and a lot healthier.
Seriously @@Paddy1833
You must be really skinny.
Spaghetti is cheaper.
@JYZProductions you know the oil comes from the chicken right
Those hot dogs cost me $401.50 and it's worth ever penny
better than depositing it at the casino. lmfao
And thank you for being the reason they keep it $$1.50 😀
You're saying you had the Costco hot dog combo meal a total of around 268 times? Pretty impressive.
That's oddly specific
I work for Costco in California and since fast food prices have gone up so much in this state. Our food court is triple busy compared to last year. The lines practically never end after spending so much money on groceries most families can't afford to go to McDonald's or Burger King so it's like you could have something from the food court when we're done shopping or we're just going home.
It seems idiotic for big corporates but it's a great strategy to attract more customers.
One of the Costcos I go to that has an outside food court now requires people scan their membership card to buy anything from the food court. Those big lines don't help when there's only 1 person fulfilling orders too, occasionally someone will jump in when it gets really busy, but they're finding ways to keep costs low.
In Sweden, IKEA sells hotdogs for 50 cents each, regular and veg. sausage. They tried to raise the price to about 70 cents but it caused a massive backlash in Sweden so the price remained at 5 SEK or about 50 cents USD.
I was going to mention this before I saw your comment. It's funny how the backlash was the same hahah
Are they the same quality or size of the Costco hotdogs?
@@norwegianblue2017 No, the IKEA hotdogs seem to be smaller in size. I guess one Costco hotdog is like 1,5 IKEA hotdog.
@@zrbitax I would said 2 IKEA dogs. But for most people you're walking 2-3 miles through the store before you get to those hot dogs, where as Costco's are big sure but you're easily walking 10x more at an IKEA than a Costco. (and yes I know you don't have to walk through the store to get a hot dog, but most people do)
There are three things certain in life:
Death, Taxes and the Costco 1.50 Hot Dog Combo
😂 wonderful idea
Don't forget $0.99 Arizona iced tea
You forgot cockroaches, and Chuck Norris holding a Nokia 3310.
Apple Inc certainly introduces NEW iPhone in September every year👀💯
"If you wanna make a hotdog, you gotta break a few skulls."
-Jim Sinegal, paraphrased.
they make up the difference in your card fees and pharmacy. the hot dogs is just a incentive to go shop. Get it right youtuber w that video.
Tasty head cheese
Never Say NEVER 😎 Justin Bieber
"Why buy a little when you can buy entirely too much for the same price?". Nice double entendre, you clever man!! In my area, the savings on gas makes the membership worth it; I rarely ever actually go in the store.
Only true around membership renewal time
what are you talking about. They consistently beat gas prices of other stations,especially if you use a costco card on top of it to fill up. @@gjd424
....that's not a double entendre.
I have been in retail for decades. Trust me, Costco is NOT losing money on their hot dogs, it's a 'loss leader' they are MAKING
MILLIONS on them!
Idk dude. 1.50 is soo cheap
@@williamkreth The point of a loss leader isn't to make money directly. They're not. It's even in the name.
However, the point is to be a selling point to customers because it's a really good deal, and you'll recoup your money in other products. This is a common marketing strategy, with some examples being (fittingly) hot dogs - the sausages are typically sold at a loss to make money on the pricier hot dog buns.
Agreed. It's a low profit item, but in volume, it adds up. Yes, I suppose you can call it a "loss" when the market would tell you to set it a higher price point due to margins from an economic standpoint, but Costco isn't paying more for the product than it sells it for.
Does the 1.50 includes taxes ? If so with 80 cents of material cost that leaves something like 40 cents for labor storage... add in a employee to make the hotdogs, let's say 1 hotdogs per minute, that's 33 cents of labor per dog leaving them just 7 cents of margin. Hard to quantify the rest of the cost. But at 1.50 they're likely not making money on it anymore
@@machintrucGaming Tax is not included. Also, it won't take a full minute of labor to make a single hot dog. 80 cents of material may be slightly overvaluing the raw materials.
My guess is that in terms of profitability, they are making 10 to 15 cents per combo sold, While the margin is extremely low, the greater value is to use it to keep people coming in and buying everything else, as the video demonstrated.
Every Costco trip ends with a hotdog and soda. NO MATTER WHAT.
Edit: I've never seen anyone get this upset at the idea of me buying hotdogs.
Yeah no. If your willing to wait in a long line for a 1.50 Hotdog after shopping at costco you have issues... you just bought food to bring home to eat. You can't wait 5-20 minutes to eat better food? I can see maybe the few times you haven't eaten lunch yet but to make it a "everytime thing" no. 💀
I rather buy Hotdogs at costco take them home light up the grill and enjoy better Hotdogs while spending time with my family not inside a costco. A costco Hotdog won't do that
With rising prices, I’ve been wondering what the math is to buy the Costco hot dogs in bulk, the buns, and then drinks, and then divide it into piece count. Would it still be cheaper than 1.50?
That’s on god🙏🏻😤
When my Father was still alive,We Would go to the local Flea Market Every Sunday! IF He didn't find anything he wanted, He Always Bought a Funnel Cake and Coffee!! That way,he Would be able to say he bought something!😊
Yes.,Everyone agrees that Costco is losing money on their hotdogs for $1.50. BUT what we spent in side the store..is priceless!
The hotdogs is one reason we will always be a member to Costco membership for life..
Plus the $5 chicken deal..
Sometimes you need to give a little to get more back…lol
yes, this is what Those MBA guy in the suit won't understand,
the only thing that they know is to cut cost to the point that their companies became a Hollow shell,
To the point that they now have with zero advantage because all the advantage the og company had was already thrown away.
everyone that was actually useful to the company was fired in favor for another bootlicker
@@jensenraylight8011 because the point of those MBA is Milk the company as much as possible and jump to the next scheme. It's pretty predictable. They don't care about the company longevity, they care about their pockets because they know pretty well they will get replace regardless how well they performed. Everybody is replaceable besides the owner and shareholders.
costco is honestly the best place for shopping for us, and i like their hot dogs, pizza, and strawberry sundae. so what if these items are loss leaders, im just glad that costco is doing something right for the time being
You forget that Costco also charges a membership fee to even enter the door. So they may be paying $1.50 but they're also paying $60 a year.
"Calculating if the $120 Executive Membership is worth the upcharge is simple. Because you get 2%, you'll need to spend $3,000 to receive $60 in cash back. At that point, your effective annual membership rate is back down to $60." I spend WAYYYY more than $3000 annually so I make that 120 back and then some. It's worth it if you go often.
@@nathanwilliams4005 - you could spend the same $3000 on a different cash back card and not have to pay an annual fee
@@nathanwilliams4005 How do you have a big family ?
You do not need a membership for the food court
Neither food court nor alcohol requires membership. Youre misinformed.
Special mention should also go to the food sample stations they'd have scattered all over the store (incidently encouraging you to explore the whole maze like mice hunting the reward food) ... then a hot dog loaded with toppings to top it off, and you wound up with a heck of a meal experience 😀
People are ASSHOLES with samples. Leaving trash everywhere, and gluttonous GREED. Like WTF??? Are you homeless? 😂
I know people who have Costco memberships only to eat the samples and get the hot dogs and not buy anything else. They call it the "Free Senior Lunch." They basically go every day, fill up on samples and maybe get a hot dog at the end. The membership pretty much pays for itself when you factor in how much you would actually spend buying fast food or going to a diner. They buy one $60 membership, get 2 cards, you can bring people with you, etc.
The Best Costco Hot Dogs come from Mexico. I went to the one in Mexicali a couple years back and not only did they have ONIONS, unlike post pandemic US locations, but they had Jalapenos, along with the GOOD Buns that us Costcos used to have. They were even wrapped in foil like the good old days, not the crappy paper bags.
Been a while since I've been there, but you could get the chicken bake with shrimp instead of chicken at the Costco in Tijuana.
@@Jason_QuinnWhen I visited a Costco in Japan a few months ago (I had to) they had a Bulgogi (Korean BBQ) Bake instead of the Chicken Bake. I had to get one. It was ok. I should have got the hot dog. I think the hot dog and soda combo was about 180 yen, or about $1.15 or so at the current exchange rate.
Here in France, the bread is seedless, and you can ask for onions for free too.
But no jalapeños unfortunately.
they use paper bags in other places?
It is unbeatable in Southern California where prices for fast food are outrageous
Maui too taking Rental car back for Gas and Lunch..😁😁😁
Sam's member here. mine's on the way home from work. i get the $5 chicken and it gets me a solid 4 meals out of it.
4 meals? wow, I can eat the whole chicken by myself in one sitting ,lol , granted my Bama gets a few bites too
K-Mart. Now there’s a name I’ve not heard in a long time. A long, long time.
Ok, Obi-Wan!
Seriously I still remember going to K-Mart. I remember when it shut down, that building just stayed there for a REALLY long time. Felt like fallout.
Maybe because it closed down yrs ago & there's no need to mention k-mart 🤷♂️ moron
I hear your cookings awesome. I haven't had to cook for a girl in a long time... a long time....
You mean s.s. kresge?
I remember in high school we would go to K-Mart and get a 2 liter of Halo 3 branded Game Fuel, and some zebra cakes for lunch.
Costco hot dog combo and a combination pizza slice is where it's at. For about $4, you're full the rest of the day.
Got that same thing many times...or some fries instead of the pizza...add a gravy for 30 cents lolol
Costcos in our area no longer have a combo pizza, only pepperoni or cheese. Boo.
I miss the combo pizza 😭
The hot dog itself costs 40 cents the bun and 20oz soda cost 30 cents each the cup, straw and napkin altogether cost less than 20 cents. Hot dogs and soda are cheap to make. The rotisserie chicken is a different
The narrator literally said that the company wasn't losing money and then said "so that's how they are losing money".
@@jer280 to the profit goblins, if they aren't making all the possible money, they might as well be making none of it
Your estimates are too high , remember they own and make everything in house from scratch (they also own the pig & cow farms where the meat comes from). A single hot dog bun is pennies , that soda again pennies , the hot dog itself .10 (if that) , condiments yup again pennies considering how little people use. Where the larger cost comes from is staff and electricity , but when you break it down to how much time is spent for one single hot dog it too can't be much, .30 or so.
@@James_Ford4815 Yes Costco now owns the hotdog manufacture and even the farms that produce them. Overall the profit is around 20 to 40 cents per hotdog. They make make a good amount of money from the 150 million combos they sell a year.
Even at full blown retail you can nearly break even on the hotdog combo. The most expensive things are the cups, soda for the average person. Even when I order from a restaurant supply company with steep discounts I can make a small profit.
Keep in mind the contract that it has though its soda vender and the bulk volume they sell gives them huge discounts along with their own cups which should be heavily discounted as well.
Even the retail package of the hotdogs state its the same ones they sell at the food court. The break down price of those minus costco's profit of 50% or more because remember they own the farm so the middle man profits are gone which gives them a huge advantage.
The other thing cost co makes huge money on is the rotisserie chickens. Though last I heard they increased the price past the 5 dollars. Either way costco owns the farm that provides them as well. I was able to find the locations of these farms several years ago and they are massive.
Costco has been slowly investing its money in its food chain and removing the middle man from the cost which brings their profits up a lot more after they pay for said farm. They also make a bulk of their profit from member fees.
Keep in mind that every story that Costco makes about loss leader products means more people are going to spend that money in which they will make more profit. Think about it like this. You are at Costco and you say lets gets a combo because you know its a loss leader and while we are at it lets get a chicken because they lose money on it. We are making a profit by doing it. This mentality is the reason why they sell very well in these products.
If costco came out with a new product that was cheap at the food court and make it appear like it was a steal of the century they would do very well.
The equipment and staff wage and business insurance all needed to make that. 40 bun add up way over
Fun fact, in New Zealand the hotdog and drink combo is $1.15 USD ( or $1.99 NZD ). So we actually get it cheaper!!!
Nice! 😮
The current price in Canada is $1.50CAD, or $1.10 USD! Above, someone posted that in Japan, the price converts to $1.15USD. I wonder where in the world is the cheapest? Anyone from Mexico on here?
But your government has disarmed you, which is never a good thing for its citizens.
I always love the "But BUFOW we get started..." at the start of the videos lol
They’re actually Really good hot dogs! Between them, and the $5 chickens, I pretty much can justify the cost of the $120 yearly membership
I can easily recoup the executive membership cost per year in my purchases for 2 people, including gas. They send me a check for the savings since I use the credit card and pay it off every month. Works for me!
They have nitrates- which cause cancer
@@scottpoerschke8807dont sound so hugh and mighty when the only reputable study only suggests that it MAY cause cancer and has had no proof that it does. Fucking internet doctors.
@@scottpoerschke8807- Thesedays just about everything causes cancer even just walking outside.😂
Haha, just went to Costco yesterday. Pizza slice, hot dog, 2 sodas, and mocha freeze for $7
Man, haven't heard the name Price Club in a long time...
Between gas prices, deals on frequently used items, tires, great food and snacks, electronics, and pet supplies, it is worth it. I also buy stuff to donate and I get the hotdog every time I visit.
It's a wiener lose situation... 🌭👀
lol this was very bun-ny
Roll-ing over on that one.
underrated
Very good. 😂
😸 I do the bad puns around here…
I $1.50 in 1985 was like $5 today so i think it’s also a testament of how over priced it was on release 😂
$5 for a prepared hot dog and fountain soda would have been a normal price in 1985. It was more common to have 2 smaller and gross tasting hot dogs and a drink for the price.
@@hewhohasnoidentity4377 $5 in 1985 would be $15 today nobody was buying hotdogs for $5 in 1985
@@hewhohasnoidentity4377 no it wouldn't.
@@hewhohasnoidentity4377No, it absolutely wasn't. A normal 1985 price would've been approximately half or at most 2/3 of $5. However, $1.50 would've been considered a "reasonable" bargain, but not an outlandish one.
I have a membership with my fam... man. I went in the other day, came out with 85 dollars in new clothes and 7 bucks for two hot dogs, a slice of cheese and the giant-ass warm choco chip cookie.
It's impressive to see Costco's commitment to providing value to its customers with the $1.50 hot dog combo, even if it means taking a hit on profits. This story highlights the importance of understanding your brand's core values and staying true to them, even in the face of financial pressure. 👏
gotta stay true to the lore
companies that forget this become skinwalkers
then eventually the crows will get them
I grew up in San Diego and we always went to price club growing up. My family have been member/ for 40+ years its our happy place.
Kirkland brand items are basically all high quality and delicious.
Here we had a Price Club until it was renamed to Costco by the late 90s.
I remember I was never that much of a hot dog guy growing up, but biting their all-beef hotdog for the first time made me a fan. Their pizza is also the best global-chain style I have ever tried. Costco just has very underrated food.
THEY STILL HAVE THE POLISH DOG in Canada!!! I want it back in the US!!!
I miss the polish dog
I alternate between the polish dog and the regular one. I can't tell the difference.
Same here!!
Your analysis is incorrect. You stated that the hot dog and bun cost between .45-.80 cents. A soda cup with refills would be .15 cents max. Just because they can charge over $4.00, doesn’t mean they are losing money by not doing so. Costco is profiting at least 60 cents, so it’s safe to say they made over $100 million in profits off of their hotdog/soda combo.
The 45-80 cents is just the bun and condiments. It didn't include the hotdog itself.
$4.99 for rotisserie chicken is very cheap.
The average price of a rotisserie chicken is about $9.99 to $19.99
The 1.50 is hotdog and soda.
I remember going to a stadium it cost like $5 for a hotdog and $5 for the medium-sized soda.
It cost the company like $.50 to make the soda.
It costs more to buy the equivalent large raw chicken at Costco than to buy it after it has gone through the rotisserie. Those whole raw rotisserie chickens are available in two-packs.
A+ video!
LOVE IT! What a fascinating topic and video, what a deal!
Mr. Roboto never topped the charts.
I know people are up in arms about Costco ever raising the price on the hot dog combo. But the REAL CRIME already happened: getting rid of the COMBO PIZZA. RIP
Noo 😢
I miss the combo pizza so much, it was so much better than the pepperoni one.
Since costco membership is valid worldwide, I stopped at one when I was in Japan last year. They still have the Combo Pizza, but instead of chicken bakes they have a Beef variant
And the hot turkey provolone sandwich, the new cold turkey mustard sandwich is no where close to the original
This pissed me off so much! BRING BACK THE COMBO PIZZA
Costco: $.25 water anyone?
Back in 1997 when I was in 10th grade at Pontiac Central High school in Pontiac, Michigan I worked at Costco in Bloomfield Hills as a cart 🛒 wrangler...My manager Laura was always hating on me because I would take breaks and was in line to get one of those delicious hotdogs with mustard
Mid 1970's corner store sold 4 hotdogs with sauce and onions for $ 1.00
@@carlmorgan8452 In what state?
Costco has a great eatery. Hot dogs, pizza, chicken wrap and so many more. Everything they sell is better than Sam's Club eatery.
They certainly have more options, but I just can't stand waiting in line like a bum, that shit is demoralizing
Since when does Sam’s Club sell prepared food? I guess I haven’t been there in a while…
@@Sniperboy5551 if you must be talking about the 90s or something, when I was a kid they were selling food.
@@Sniperboy5551 I worked a couple years in the early 2000s at Sam's Club #6537 in Annapolis, MD. We had a food court with hot dogs and pizza. I worked in the meat dept. Our club was #2 in the nation in rotisserie chicken sales. #1 was Honolulu which sold 4 times what we sold. They were selling somewhere in the neighborhood of 1,200 chickens a day to our 300.
The chicken bake 🥰🥰
I've never eaten a Costco hot dog. I've never shopped at a Costco. In fact, I've never even SEEN a Costco.
Where do you live? In-laws got to see their first Costco by driving 100 miles when it opened in 2013 in Sioux Falls.
Before late 2013 I had to drive 90 miles to go to Costco. Glad they put one in my area. I'm 3 miles from the place.
@@petuniasevan In a tiny town, population 500-ish, northeast Missouri. There might be Costco in St. Louis but I rarely if ever go there.
Got a Costco and an Ikea near me, within 10 miles.
But lack electronic stores. There were three 5 years ago, two closed and one burned down(sadly, Worst Buy was not the one that burned down). At least it is easier to buy electronic online than most items. But at the same time there are other options, just more expensive, for the other stuff.
Maine just got their first Costco. For people in northern Maine, it's a 4+ hour drive.
@@justanoman6497 "Worst Buy" - love it 🤣
Back in 1964, I work in a beer bar. It only sold beer and pizza. One day the owner happened to drop by while I was making a pepperoni(it was the type of pizza we sold). The owner was giving me a bad time for not putting enough pepperoni on the pizza. I pointed out that our pizza was priced very low compared to pizza joints around town. He said he was in the beer buisness not pizza. He only sold pizza because people bought more beer waiting for and eating their pizza. As long as he didn't lose money on the pizza, it was a loss leader.
By the way, the 1964 date is not a typo error. I'm 82 and was in college in 1964. The owner sold the bar. The new owners tried to expand the buisness by having a full menu and selling wine and hard liquor(sp), and ended up bankrupt in about 10 years. They forgot that they were in the beer buisness.
MISS Hot Dog and FRIES combo like $150 1980. One was enough and HE leased out the bus All went Broke..Take Care
Don't forget eating food in general make it absorb slower, so more beer gets sold.
I love Costco integrity. The only store where prices go down when their cost for it goes down. I’ve noticed some of my staple items decrease in $
I haven't tried one, but hearing that they do their own hotdogs make me want one. I love companies that can manage to be faithful with their brand, so whenever I do go for, I'll gladly become a member stepping in.
Restaurants charging 2 to 5 dollars for soft drinks means they are making huge amounts of money.
I always will roll my eyes when people comment how little margins restaurants make.
Water is wet and women have secrets.
@@triculious Restaurants make BANK, the servers...
[Insert J Jonah Jamason laugh]
Soft drinks have a huge markup at most places even if they're buying from a supermarket instead of buying directly through a Coke or Pepsi distributor.
@@The18iceman The Last Boy Scout! 😅
Without watching I'm assuming they do it because the cheap hot dogs will get people reeled in, and they will not only buy a hot dog but a bunch of other items in the store that makes them money.
I remember during the Compact Disc era, Best Buy sold their cds for a loss to get people in the store. Sound strategy (no pun intended)
@@famousashtray They also gave free installs if you bought car audio equipment. I used to get all my car audio stuff there just because of that.
Yep. I never go to Costco just for the food, it's the reward after a $300 shopping trip😂
This was a great video 😁
Can you do a video on Chick-fil-A sauce?
9:10 I also beg to differ on the "free bread at restaurants" thing. Most of the ones I've been to in the past couple of years now charge for bread, allow only one free refill on sodas, and charge you more if you use a credit card to pay instead of cash. And note here, restaurant owners/managers/staff: the day you start charging for a glass of water is the day I will avoid your establishment like the plague, and let everyone know my experience.
As my dad (retired salesman) said, "If you please everyone, they MIGHT tell someone else. But for sure if you piss them off, they WILL tell everyone they know. And only repeat customers are profitable."
Don't go to a restaurant in Europe, they charge you for room temperature water and often to use the bathroom.
In Quebec, we have poutine in Costco’s too
Ontario as well.
The membership is worth getting just for the Hotdogs & Rotisserie Chickens
Really generous of them to give people UPF
I remember the location in Medford, Oregon has polish dogs instead and they are FAR superior to the standard ones.
That location has it's food court inside the building though.
What's a polish dog?
They used to have the polish dogs on an outdoor roll, and pretzels in a lot of the PNW locations (and probably more, that's just all I know about) Sadly, both are gone. While the $1.50 dog is good, it's trash compared to the polish dog
I have never had a Costco hotdog... but I will this weekend.
as long as your a active member.
I am@@sunny-sq6ci
They’re pretty good.
Our wonderful narrator! ❤
This guy is undoubtedly the best narrator, but the female narrator is getting better. I couldn’t stand her at first, but she’s growing on me.
No way are they losing . The cheap hotdogs are well covered in cost by the pay to shop cost.
The bureau of labor saying hot dogs should cost $4 with inflation is hysterical.
During art shows, farmers markets and a few other events my friends family sets up a hot dog stand using Kirkland dogs, buns and ketchup/mustard and sell them plus a can of soda for $1.50 and cover all expenses plus lot fees and usually cover about $20/hour for the two people manning the station.
The fountain soda plus cup cost about 0.08 and the hot dog + bun and the marginal amount of condiments is likely well under that $0.40 cost considering 36 count of the hot dogs to a normal Costco consumer is $9.99 or $0.27/hot dog...
I would pay $4 for a Costco hotdog. Said no one ever.
Have you left your home in the last five years? Actually, that would still be a strong value, have you priced 1/4 pound dogs with drinks? Good luck beating $4.
Dang, was just telling a friend about this yesterday.
It will be a heartbreaking day when the price changes. Will definitely enjoy them while they're still at this amazing value.
Buying the ingredients at a supermarket (package of wieners, package of buns, ketchup, mustard) and a big bottle of soda) works out to an individual cost per hot dog that is more than the price of a Costco Hot Dog. They may be sold at cost or even lose a few cents on each one. They are not losing a buck or two on each hot dog and soda.
Individual purchase with god knows how many layers of middle man is not the same as vertically integrated bulk handling. They are not losing a penny as far as the ingredient goes. The real question is the prorated cost of real estate, labor and electricity.
Ketchup is WRONG. If you're over the age of 5, it does not belong on a hot dog. I bet you hate mushrooms too😂😂😂
@@Blitzkrieg1976 NEVER put ketchup on a hot dog, NEVER. Used to put Ketchup on a toasted western or BLT sandwich. Sometimes but not always. Does not mater now as I can not have it. As for mushrooms, I LOVE MUSHROOMS. Fresh sliced or whole, raw or saute. Canned mushrooms from Holland (NOT China) are okay in a pinch. My point is that it is cheaper o but a COSTCO dog than to make one at home.🙂🙂
@@garfieldsmith332 If it's a loaded street dog of sorts and ketchup happens to be one of them, I'm okay with it, but it's not my go to. I much prefer mustard on my dogs, along with kraut, or alternatively, some onions and relish.
@@godaistudios Nothing beats "street dog". Onions, kraut, hot peppers, pickles, and hot mustard for me.
dollar dogs are such a good idea
hell yeah, never had one but I will one day. 😂❤
Another reason the hot dog works so well is that costco is generally so far away that nobody (unless you happen to be the very few that live closeby) is ever going to go just for the hot dog.
What I was told when I worked for Costco 20 years ago, the profit loss on the hot dogs and chickens is rolled into the membership fee - which also covers employee wages.
i love Costco. i bought their 30-roll pack of TP last October and i'm not even halfway thru it yet.
Single man eh? I know how it is. Since I became a widower, the roll of TP that previously lasted a few days now lasts a few weeks.
I too buy toilet paper on a bi-annual basis. Single dudes rule.
Yeh. Limit of one square, use both sides. And tear of a little corner for cleaning your fingernails.
Makes me want a hot dog real bad 😂
If Costco was closer, I'd get a membership just for the food court. About a half hour drive for me, so it's not worth it.
They lose money on the roast chicken too but they make so much money on the membership price(I think it's a scam) it doesn't matter to them. All grocery stores do this, the point is to get you in the store to buy more stuff.
The membership is a scam? 60 bucks a year to not have to be around the trash that you see at Walmart and stores where people act like garbage is a scam? I gladly pay to be around civilized people and low prices of their stuff.
If you go online to Groupon and other aps they often have Costco memberships for 50 to 75 percent off. If you can get them on sale it’s probably worth it otherwise you’re likely correct.
Ehh, they get incredibly small chickens to put in that rotisserie. Sure a chicken might cost you $7.50 at the store uncooked, but it's almost twice the size, and that's retail.
@@jer280 But it's combined with the cost of labor to cook the chickens.
@@Woozlewuzzleable you think the cost of labor to slap 26 chickens at a time into a rotisserie oven is more than $1 per bird? Come on man, you can't be that foolish. They're half the size of regular chickens, and come pre seasoned. You can't honestly think less than 2 minutes per bird is costing them $1. More than that really bc they are paying wholesale for chickens that are at most 60% the weight of one you would pay $8-9 for. It's literally impossible for them to be losing actual money on the product.
I miss when the dog had options... The kielbasa dogs just tasted better and came with sourkraut. and yes, both of the first two Costco locations in the Seattle area are still open. The second one is just focused on the business side of customers.
In Ontario Canada we still get the Polish sausage but they only have ketchup and mustard. No more hot peppers, pickles, onions, kraut.
I remember getting a hotdog and soda from the cart in front of Price Club for probably $1.50 back in the 80's. Good times.
Hell, I don’t think I’ve even ever been in a Costco…
A buddy with a membership once took me as his guest. Everything is sold in bulk quantities that will blow your mind. The food court is impressive but crowded.
Trying grabbing a hotdog BEFORE you go for groceries. Prevents you from buying too much food you don’t need
We sometimes just go in to the food court and have our cheap food while watching people giddily wheeling out their overloaded carts. Ah, consumerism at its peak!
@@ArtamStudio murica
good video
We buy almost everything from Costco. Food, tv,appliances,hearing aids. Their hot dogs are a nice perk.
wow $1.50 must have been quite pricey 40 years ago
Costco losing a small amount on a few food items is no different than HP selling you a printer for $50, but charging you ridiculous prices for the ink!
Costco charges a yearly membership fee, plus they are making profit on everything else they sell in the warehouse. The fact that people buy more of that stuff makes it feel like it's a huge discount to consumers, but Costco is making money hand over fist!
Also they dont actually lose money, its 0 or few pennies of profit, but not a loss. Owning entire supply chain instead of buying from someone else with markup has its benefits.
The hot dogs have gotten skinnier, they got rid of the Polish Sausage. And where are the condiment stations?
Here in Florida we still have polish and condiment stations. Where do you live?
The pandemic killed the condiment station. Ask for the condiments you want when you pick up your food - I just learned this recently and was so happy to get onions again.
when a fine meal out means a trip to Costco for a hotdog, you know you've arrived. Third world baby.
At the local Sam's Club (which is about two miles from my home, compared to the eight miles drive to the local Costco) the hot dog and 24 oz. cup combo runs $1.50 (plus tax). However, if you want two hot dogs with your order, that second hog dog will cost you an additional $1.30. Not terrible, but it may be an indication of how much of a markup fountain soda drinks are.
No one is going to confuse a Sam's Club food stand with a four-star restaurant. Cleanliness in the eating areas can be suspect. One thing for certain -- if Costco or Sam's Club start charging $4.00+ for the hot dog combo (or $2.50+ for their individual drinks), they might as well shut down the food stand in the stores.
0:01 My friend, who I Iived with at her house in Omaha, was a longtime manager of Costco.
Though she was not working there when I lived with her, we went to Costco a lot during that time.
😂😂😂😂 pointless comment #10. 🎣🏆
@@Dave-bj3pq When everyone around you leaves you, they are going to talk about how you could not change course even in the face of inevitable failure.
A lot of shop Costco moron.. & your mom isn't a "roommate" 🎣🏆
& there's pointless comment #11
@@Dave-bj3pq When you are on your own, you will be crushed by the weight of the world in about 10 seconds.
I love their hot dogs, as well as their churros! Ps, I’d love to see a deep dive on the history of the ice cream truck. I saw a post on a nostalgia page this week, showing a late 80s ice cream truck. He drew attention to the chips in the back, and sajd that done trucks sold other stuff, in addition to ice cream.I wonder when that started.
Price Club did not start in an airplane hanger. I grew up on the hill behind that location, the first Price Club. My mother was one of the first members. That building was first used to make bubble-canopy helicopters for the military. As a child I remember watching the roll out the new helicopters onto trains and trucks. There still are train tracks that cross Morena Blvd. Ryan Air (think of the Soirit of St. Louis built by Ryan Air) moved in to that facility in the 1960s. In the mid 60s, Ryan Air moved out and Sol Price purchased the entire plant for Price Club. It is only leased to Costco and is wholly owned by Price Enterprises.
8:45, Sir Yacht spotted
Not only have I never eaten a Costco hot dog, I've never been IN a Costco. When you live alone, going to a warehouse place where you have to buy in bulk isn't worth it.
It is if you have a small chest freezer.
Whenever a Costco roadshow comes to town you can get some really great deals on items such as computers, appliances, furniture, grills, etc. I got my Kamado Joe Big Joe grill for around $500. That's half the retail cost.
@@stacylgh and a never-ending supply of ziploc freezer bags. I spend the same amount of time divvying Costco meat and bread for freezing as I spend actually buying it.
That chicken bake though. My heart
I went to Costco today and was so tempted to get a hotdog but already had ate before going but watching this video has made me crave one so badly lol
If I saw someone drinking Mr pib while eating a 50$ steak I'd lose my fucking mind
The only video clips media can find now of people shopping is people wearing masks? REALLY?
Aaaaah, okay... the Fed Mart/Price Club origins answered something I was thinking about last time I was there. I had a distinct memory of membership being somewhat exclusive when I was a kid, so much so that you needed to show a business license. So I guess I was partially right in my recall.
I remember shopping at Pace back in the 80s!
They DO NOT lose money on a hot dog and drink. It costs them pennies to make the hot dog, bun, cup, straws, napkins, condiments, and soda. They don't make a lot of money off of it. But, they Do Not lose money. They are too smart, too busy, and making too much money.
The audio is weird
Is it AI?
I was going to offer idea "go get 100 hotdogs, freeze them and you get food for month" but then realized that someone is definitively doing that already.
Very interesting content and good presentation!
Costco is helping me deal with Biden-flation. If Biden get re elected, Costco hot dog will be " Fine Dining. "
I worked at Price Club when I was just 18 years old. Mostly pushing carts and calling out the item numbers. They didn't have scanners yet. Great place to work with a starting pay of $5.85/hr when California minimum wage was $3.35/hr. Plus they paid overtime for all day on Sundays.