Richard Galanti, Costco's departing CFO, assured that the iconic $1.50 hot dog and soda combo will likely remain unchanged for some time. He shared this in a conversation with Bloomberg, just before ending his long service on Friday. Gary Millerchip, from Kroger, is set to take over his position.
Costco's food courts have famously offered this combo at the same price for about forty years. This has been possible due to a commitment from the company's founders, as reported by FOX Business.
Despite past inflation challenges, Galanti emphasized the importance of maintaining the combo's price. In 2022, he mentioned how profits from other sectors help keep the hot dog and soda's price stable.
Recent adjustments have been made to the food court's menu, though. The churro has been removed, replaced by a $2.49 chocolate chip cookie. This change was announced during Costco's second-quarter earnings call.
Additionally, a new $6.99 turkey sandwich has been introduced to the food court's offerings. These updates demonstrate Costco's continuous effort to refresh its menu.
The food court and other side businesses play a significant role in attracting more visits to Costco. With 132 million cardholders and 875 warehouses globally, these strategies seem to be working well for the retailer.