Are Costco’s Famous Food Court Franks Available For Bulk Purchase?

The famed Costco hot dog, which is typically accompanied by a 20-ounce drink and sold for $1.50, is a massive draw for the Issaquah-based company. The deal is so popular that the retailer sold over 200 million combos in 2023, per the Seattle Times, an achievement that has helped Costco sell more hot dogs than Major League Baseball. The good news is that those who love Costco’s most famous food court offering can rejoice, knowing that they can buy the hot dogs in bulk in its vibrant blue packaging labeled “As served in Costco food courts.” The Kirkland Signature brand, all-beef hot dogs come in a pack of 14 and retail for $18.19 (depending on your location). 

Ironically, it’s more cost-effective to purchase your meal at the food court than in bulk. After crunching the numbers, each hot dog calculates to $1.30, which excludes the cost of the bun and soda that you’d get with the combo meal. Compared to other hot dogs you can buy at the grocery store, such as Ball Park franks sold at your local Walmart, which are priced at $5.17 at certain locations for a pack of eight bun-length hot dogs, Costco’s bulk beef franks are still quite a good deal — especially for those who like to style their hot dogs in different ways.

Costco’s beloved $1.50 hot dog and soda combo is cherished and something company leadership has taken very seriously over the years, particularly when it comes to price increases. That said, this wallet-friendly meal has a bit of a backstory.

The $1.50 hot dog and drink combo first appeared at Costco in the 1980s, when Hebrew National sold hot dogs outside the doors of a Costco in San Diego, California. As the combo grew in popularity, the small stand evolved into the 150 Cafe, which was named after the cost of most of the menu items. In 2009, Costco began operating its own hot dog factories to supply food courts with Kirkland brand all-beef hot dogs, officially replacing Hebrew National as its supplier.

If the combo meal were to be adjusted to match the rising cost of inflation, it would cost over $4 today. However, Costco has found that the meal deal is an integral part of its brand and marketing. After all, the combo is a strategic loss-leader, meaning that the hot dog and soda are sold at a loss in hopes of bringing in and retaining customers. It’s understandable why this deal is so protected. Costco co-founder Jim Sinegal had even once reportedly threatened former CEO W. Craig Jelinek, saying, “If you raise the effing hot dog, I will kill you. Figure it out,” according to 425 Business. Given Costco’s customer-first approach, and with other companies steadily raising prices, raising the cost of the combo could harm its brand identity. 

Despite rising costs, the $1.50 hot dog and soda combo will remain at that price indefinitely. The wholesale company is able to maintain this deal by increasing the prices of other Costco food court menu items and introducing new items like the double chunk chocolate cookie.