Costco Customers Furious Over Potential Price Hike of Iconic $1.50 Hot Dog Deal
Costco customers are up in arms amid growing speculation that the beloved $1.50 hot dog and soda combo, a staple at the retailer’s food courts since 1985, could soon become more expensive. The potential price increase has sparked outrage, with some loyal shoppers even jokingly threatening to "riot" if the deal is altered. For many, the $1.50 combo represents more than just an affordable meal—it’s a symbol of Costco’s commitment to value and customer satisfaction. The mere suggestion of a price hike has sent shockwaves through the Costco community, with fans taking to social media to express their frustration. One customer dramatically warned that a price adjustment could lead to chaos on a scale that would make the French Revolution look tame, while others vowed to protest if the deal is changed. Beer brand Samuel Adams even chimed in, humorously tweeting, “Not to be dramatic but I will RIOT UNTIL I DIE.”
The Fear Behind the Fury: Why the $1.50 Combo Matters
The backlash stems from a deeper fear that Costco’s pricing strategy may be shifting under new leadership. Richard Galanti, Costco’s longtime executive and self-proclaimed “voice” of the company, recently retired after nearly four decades of service. Galanti was a vocal advocate for keeping the hot dog combo at $1.50, famously declaring during a 2022 earnings call that the price would remain “forever.” His departure has left many wondering if the combo’s days are numbered. Galanti’s retirement marks a significant change in Costco’s leadership, and his influence on maintaining the iconic price point is now gone. Customers are bracing themselves for the possibility that the new executive team, including incoming CFO Gary Millerchip, may prioritize profits over tradition.
The Man Behind the $1.50 Promise: Richard Galanti’s Legacy
Richard Galanti, often referred to as the “voice of Costco,” played a pivotal role in shaping the company’s pricing philosophy. As CFO for nearly 40 years, he championed the $1.50 hot dog combo, seeing it as a cornerstone of Costco’s brand identity. Galanti’s unwavering commitment to affordability helped foster trust and loyalty among customers, who appreciated the consistency of the deal even as inflation and operational costs rose. His retirement has left a void, and fans are worried that his successors may not share the same dedication to maintaining the combo’s price. In a parting interview, Galanti hinted at the growing challenges of running a business in today’s retail landscape, acknowledging that Costco’s pricing model might become harder to sustain. His comments have only fueled speculation that the $1.50 deal could be in jeopardy.
New Leadership and the Fear of Change: Enter Gary Millerchip
The appointment of Gary Millerchip as Costco’s new CFO has further heightened concerns. Millerchip, formerly the CFO of grocery giant Kroger, has a reputation for increasing prices to boost profit margins. Customers are wary of his track record, fearing that he may view the $1.50 combo as a prime target for a price hike. Reddit users have been vocal about their distrust, with one commenter noting, “His replacement, Gary Millerchip, is the former CFO of Kroger—who was infamous for raising prices to increase the margin.” Others have expressed surprise that Costco, a company known for promoting from within, hired an outsider with a background that seems at odds with its customer-focused ethos. While Millerchip has been described as “good to go” by Galanti, his arrival has sparked fears of a cultural shift at Costco. Fans of the retailer are holding their breath, hoping that the new leadership will respect the legacy of the $1.50 combo.
The Secret Behind the $1.50 Combo: Costco’s Pricing Philosophy
Costco’s ability to maintain the $1.50 hot dog combo for decades lies in its unique business model. Unlike many retailers, Costco operates on a “cost plus” pricing strategy, where prices are set based on production costs rather than market demand. This approach, combined with the company’s massive purchasing power and efficient supply chain, has allowed it to keep the combo affordable. In 2009, Costco’s assistant vice president of publishing, David Fuller, explained that maintaining the price was a deliberate choice to send a clear message about the company’s priorities. However, the modern retail landscape presents new challenges, including inflation, supply chain disruptions, and regulatory demands. As Galanti noted during his retirement, running a business today is far more complex than it was in the past, and these pressures could ultimately force Costco to reconsider its pricing strategy.
What’s Next for Costco and Its Iconic Deal?
Despite the fears, the $1.50 hot dog combo remains unchanged—for now. Costco has not officially confirmed any plans to increase the price, but the uncertainty linger