Costco hot dogs are serious business according to the chain's co-founder, who famously threatened the life of anyone who dared raise the price of the food court's legendary $1.50 hot dog and soda combo. Costco's dogs are undeniably delicious thanks to the beef's quality and their substantial size, so it's easy to see why people are passionate about them. Some people, however, might wonder who manufactures these magnificent dogs for Costco. Wonder no more, because we're here to tell you that the manufacturer behind Costco's famous hot dogs is ... Costco.

Costco debuted its hot dogs in 1984, though in the beginning, they were sold not from a food court, but from a cart stationed outside the store. For many years, the chain worked with suppliers who specialized in kosher dogs, but by 2007, the chain worried that its mammoth sales would outpace its supply. (For context, in 2023 alone, Costco sold nearly 200 million hot dogs).

Around this time, Costco decided to manufacture its own dogs to ensure an ample supply while also asserting greater quality control over the finished product. This switch to in-house meat manufacturing resulted in a higher-quality product in terms of both size and ingredients.

In-house meat production gives Costco greater control

Outdoor Costco food court

Idealphotographer/Shutterstock

Much like Costco's headquarters, which can be found in Issaquah, Washington, the store's meat-packing facility is also on the West Coast. Located in Tracy, California, the meat-manufacturing plant that produces Costco's awesome dogs also serves as a storage site for the frozen and perishable foods that eventually make their way to San Francisco stores.

The 250,000-square-foot facility produces all kinds of meat products, including meatballs, ground beef, and sausages. On the other hand, Costco's famous rotisserie chicken (which has quite the cult following thanks to its low cost and great flavor) is produced in Fremont, Nebraska, with the assistance of a poultry management company.

Costco's meat-packing approach is a bit different than some others in the industry since animal slaughter doesn't take place within the facility, minimizing food contamination risks. The company is also quite diligent in its meat-testing processes, often repeating trials to ensure the product is suitable for consumers. By operating its own meat-packing operation, Costco can maintain its attractive store model that offers shoppers quality products for low prices. And while the price of a hot dog might not amount to much, Costco's $1.50 dog and soda combo symbolizes the store's commitment to serving its members.