A hot dog and soft drink on a table inside a Costco warehouse store.

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The USDA reported that 13.7% of U.S. households were food-insecure in 2024 — a statistic that truly speaks to how inflation has impacted America's eating habits. As food prices climb, one anomaly shines as a beacon of hope, apparently resistant to the perils of inflation. Once referred to by USA Today as "America's happy meal", Costco's iconic hot dog and fountain drink combo has remained $1.50 since 1985. What's more, the 20-ounce drink includes free refills. If you factor in the rate of inflation from 1985 to 2026, the combo would cost $4.52 today (via the American Institute for Economic Research). 

"A hot dog and unlimited soda for $4.52" just doesn't have the same ring to it as the ubiquitous $1.50 rate. That's why we're hoping this cherished hot dog and soda combo never joins the Costco items to fall victim to inflation (the bakery section hasn't been so lucky). The good news is that the price of this food court favorite appears to be stabilized, at least according to Ron Vachris, Costco's CEO. In a March 2026 video posted to Costco's Instagram, Vachris ordered the hot dog and soda combo from a food court employee and enjoyed the meal at a table inside the warehouse. "The hot dog price will not change as long as I'm around," Vachris stated, and later added, "That's $1.50 well spent."

How Costco keeps its hot dog and soda combo affordable

Costco food court sign advertising the hot dog and soda combo for $1.50

ZikG/Shutterstock

In addition to the promise straight from the CEO's mouth, it's also comforting to know that economists have recognized Costco's hot dog and soda combo as a successful loss leader strategy. A loss leader strategy involves pricing items extremely low to get new and repeat customers through the door, with the hope that those customers will purchase enough to make up the revenue lost from the deal. As companies continue to lose foot traffic while inflation bears down on consumers, other establishments are turning to loss leader strategies. In 2025, McDonald's brought back its $5 meal deal in an attempt to make fast food affordable again.

Redditors have also applauded Costco for its business strategy and commitment to keeping the hot dog and soda price consistent for decades. A user at r/CostcoWholesale wrote, "Costco might lose money on one or two people who eat the $1.50 hot dog then leave. Costco makes up for it on the people like me, who went in for 'just a few things' and rang up $300." Redditors at r/hot_dog shared how the hot dog and soda combo was what won them over. One former Costco member admitted that after their membership ran out, they kept the card and continued to visit the food court — but the Costco food court change you'll probably see in 2026 is tighter restrictions on non-members eating there.