January 1, Costco CFO Drops Major Hint on Future of $1.50 Combo Deal

Richard Galanti, the soon-to-be-retired CFO of Costco, has recently provided some insight into the future of the company’s iconic $1.50 hot dog and soda combo. As he prepares to leave his position, Galanti reassured customers that the beloved deal “is probably safe for a while,” during a recent interview. His successor will be former Kroger CFO, Gary Millerchip.

The hot dog and soda combo, a mainstay of Costco’s food court, has kept its $1.50 price for nearly four decades. This has been made possible due to a pledge from the company’s founders to keep the combo’s cost steady.

Galanti, who has been Costco’s CFO for almost 40 years, has previously addressed concerns about the sustainability of the combo’s price tag. Amidst high inflation rates in September 2022, he explained how the company’s profit margins from its gas and travel businesses “help us be more aggressive in other areas or … hold the price on the hot dog and the soda a little longer, forever.”

In recent times, Costco has made some changes to its food court offerings. The retailer has discontinued its churro, replacing it with a chocolate chip cookie priced at $2.49, as disclosed by Galanti during Costco’s second-quarter earnings call. Additionally, a $6.99 turkey sandwich has been added to the food court menu.

Costco has always emphasized that its ancillary businesses, such as food courts and gas stations, play a vital role in attracting members to visit its warehouses regularly.

The company’s strategy appears to be effective, as the total number of cardholders increased to 132 million by the end of the second quarter. Currently, Costco operates 875 warehouses worldwide.

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