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Posted: 2022-07-08T07:35:16Z | Updated: 2022-07-08T07:35:16Z Costco Food Court Just Raised The Price Of 2 Favorite Menu Items | HuffPost

Costco Food Court Just Raised The Price Of 2 Favorite Menu Items

"Its sad but true," one worker was quoted as saying.
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Costco has reportedly raised the prices of two of its popular food court items.
PATRICK T. FALLON via Getty Images

Costco has reportedly raised the prices of two of its popular food court items. 

Business Insider reported that the chicken bake jumped from $2.99 to $3.99 while the price of a soda increased from 59 cents to 69 cents.

Nexstar Media confirmed the price hike.

“It’s sad but true,” an unnamed employee at one store told Nexstar.

The move comes as consumers continue to feel the bite of inflation, with the price of food up 11.9 percent compared to a year ago. 

The beloved hot dog and soda combo remains $1.50, a price unchanged since it was first added to the menu in 1985. In May, Costco denied rumors of a price hike on the combo.

“Let me just say the price, when we introduced the hot dog-soda combo in the mid-’80s, was $1.50. The price today is $1.50, and we have no plans to increase the price at this time,” Bob Nelson, Costco’s senior vice president of finance and investor relations, said on an earnings call .

That price is so iconic that CEO Craig Jelinek said company founder Jim Sinegal had an ominous reply when he suggested raising it. 

“I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends,’” Jelinek told 425 Business in 2018 . “And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out.’ That’s all I really needed.” 

But Costco has tinkered with the rest of the food court and not just with the prices. The $1.50 combo used to offer the option of either a hot dog or a Polish sausage. In 2018, however, the retailer killed the Polish sausage option, setting off a fury on social media .

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Before You Go

What You Didn't Know About Costco
Store design(01 of10)
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Store design is key: Fresh food is always placed in the back , which means customers must wind through the entire warehouse to get to them. Costco's main drag is known as "The Race Track," which is designed to expose shoppers to every category of product Costco carries as they make their way through the store, ensuring no one leaves without seeing furniture, electronics, clothing, jewelry, alcohol, food and everything else the store carries. (credit:AP)
One of the world's biggest meat purveyors(02 of10)
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Costco is one of the world's biggest purveyors of meat, selling $4.5 billion worth of it a year.It sells an additional $4 billion in produce annually.[Source: CNBC] (credit:AP)
55 million chickens(03 of10)
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Costco sells 55 million chickens every year.[Source: CNBC] (credit:AP)
Limited SKUs (Stock-Keeping Units)(04 of10)
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Costco only stocks about 4,000 items. In contrast, the average supermarket can carry 40,000, and Wal-Mart stocks 100,000. Trader Joe's is similar in this regard. The thinking is a) too many choices can be paralyzing and results in no purchase made, and b) it increases the sales volume of each item, letting Costco cut bigger discounts in deals with suppliers.[Source: CNBC, New York Times ] (credit:AP)
Kirkland label(05 of10)
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15% of Costco's products are under the Kirkland Signature label, which is almost always less expensive than national brands. (credit:AP)
Verifiably low prices(06 of10)
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An independent study from Consumers Checkbook showed that Costco's prices on food products are about 30 percent lower than those at the largest supermarket chains. No items are marked up more than 15 percent. In contrast, most supermarkets mark up prices by 25 percent and department stores by 50 percent.[Source: CNBC] (credit:AP)
Crazy for cashews(07 of10)
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In order to sell products for as little money as possible and break even, Costco does everything it can to lower its prices. For example, its changed the container shape on their Kirkland cashews from a round plastic jug to a square one, which maximizes space on the pallets. The adjustment saved around 400 trucks a year in shipping the product nationwide.And boy are cashews popular. Costco buys up half of the world's supply of the most popular variety, and every week they sell $300,000 worth of them.[Source: CNBC, ABC]Photo by Flickr user Bitman .
Costco's wine power(08 of10)
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Costco is credited with making high-end wines more affordable and making global wines more popular, according to CNBC. The company is one of the largest importers of high-end French wines and many premiere brands. Costco sells more more than $1 billion worth of wine each year, more than almost anyone else in the world, leading many, including Wine Spectator , to call their wine buyer, Annette Alvarez-Peters, one of most powerful figures in wine industry.Like everything else at Costco, nothing is marked up more than 15%. Sales of Kirkland label wine bring in $63 million, a number they hope to quadruple. [Souce: CNBC, Wine Spectator]Photo by Flickr user quaziefoto . (credit:Flickr: quaziefoto)
Membership not (necessarily) required for booze(09 of10)
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In some states, due to the rules surrounding liquor licensing, you don't even have to be a member to buy wine or other alcoholic beverages at Costco. In California, where it's not required, you just need to go to the membership counter and ask for an "alcohol pass."According to a recent list by The Consumerist, other states where a membership is not required for booze include Arizona, Connecticut, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New York, Texas and Vermont.Costco's alcohol sales are comprised of 50 percent wine, 25 percent spirits and 25 percent beer. (credit:AP)
Behind the $1.50 hot dog(10 of10)
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Costco's $1.50 hot dog and soda is the same price as it's been since 1985. To maintain the low price, the company switched from canned soda to machines, cut better deals on condiments and buns, and in 2008, they started making their own hot dogs. Today, Costco sells more than 100 million hot dogs each year.Photo by Flickr user jwalsh . (credit:Flickr: jwalsh)