US Costco "Prices Won't Rise Despite Inflation... Hot Dog Forever $1.50"

Chief Financial Officer Mentions in Q4 Conference Call
No Price Changes Since 1985 Launch
Founder Tells CEO, "I'll Kill You If You Raise Hotdog Prices"

Costco's Chief Financial Officer (CFO) announced that the price of the hot dog set will be maintained at $1.5 "forever." Photo by Pixabay

[Asia Economy Reporter Kim Juri] Amid severe inflation in the United States causing companies to rapidly raise product prices, Costco's Chief Financial Officer (CFO) has attracted attention by announcing that the price of the popular hot dog set will be kept at $1.50 (approximately 2,140 KRW) 'forever.'

According to CNBC and other media on the 26th (local time), Richard Galanti, Costco's CFO, was asked during the Q4 earnings conference call last week whether the price of the hot dog set would be raised to improve tightening profits.

The hot dog set, consisting of a hot dog and a soda, has maintained its $1.50 price since its launch in 1985 and is widely known as a symbolic Costco product that "offers quality products at affordable prices."

Regarding the price increase, CFO Galanti said, "Maintaining the hot dog set price is a different part of the business," adding, "Other business segments have higher profit margins. This helps us be more aggressive in other areas of the business, including keeping the hot dog set price forever."

Craig Jelinek, Costco's Chief Executive Officer (CEO), also appeared on a CNBC program last July and responded "No" when asked about raising the price of the hot dog set.

Previously, in 2018, CEO Jelinek revealed to foreign media that when Jim Sinegal, Costco's founder, said the hot dog set was losing money and could not be sold at $1.50, "he said, 'If you raise the hot dog price, I will kill you.'"

However, Costco raised prices on other food court menu items last July, increasing the Chicken Bake from $2.99 to $3.99 and soda from 59 cents to 69 cents.

This content was produced with the assistance of AI translation services.