Introduction
Costco is a popular warehouse club retailer known for selling items in bulk. One of their most beloved offerings is the food court, which provides customers with quick and affordable meals like pizza, hot dogs, churros, and more. The Costco food court has achieved a cult-like following, with the $1.50 hot dog and soda combo being one of the main draws. This incredibly low price point for a filling and tasty meal is part of what brings customers back to Costco food courts again and again. The hot dog offering, in particular, has reached an almost legendary status, with dedicated fans and massive sales numbers cementing it as a staple of the Costco shopping experience.
Costco Hot Dog Basics
Costco offers its hot dog and soda combo for only $1.50 at food courts across its many warehouse locations. This price has remained unchanged since 1985. Part of Costco’s business model is to offer staple items like the hot dog combo at a low price to bring customers into the store. The remarkably low $1.50 price point makes the hot dog combo a popular bite for shoppers.
According to The Ridiculous Number Of Hot Dogs Costco Sells Every Year, Costco sells approximately 151 million hot dog and soda combos each year in its food courts. That staggering number means Costco sells more hot dogs annually than every Major League Baseball stadium combined.
Kirkland Signature Brand
Kirkland Signature is Costco’s private label brand. It was introduced in 1995 and offers a wide range of products, including food, beverages, clothing, home goods, and more. The Kirkland Signature label indicates that the product meets Costco’s standards and specifications. Kirkland Signature products are typically priced lower than national name brands, allowing Costco to provide quality products at a discounted price. Costco works with various manufacturers and suppliers to produce Kirkland Signature products. Today, Kirkland Signature accounts for nearly a third of Costco’s total sales.
The Kirkland Signature brand includes over 4,000 products ranging from organic foods to kitchen electrics to automotive supplies. Some of the most popular Kirkland Signature products include batteries, chocolate-covered almonds, laundry detergent, bottled water, paper towels, bacon, coffee, golf balls, and spirits such as whiskey and vodka. By offering high quality private label products, Costco is able to differentiate its offerings from other retailers and provide exceptional value to its members.
Kirkland Hot Dogs
Costco food courts exclusively use Kirkland Signature beef hot dogs. Kirkland is Costco’s private label brand. The hot dogs are made with a blend of beef and chicken and are loaded with 7g of protein per link according to Nutritionix. Each all-beef hot dog contains 150 calories, 13g of fat, and 2g of carbohydrates per Carb Manager. The ingredients are beef, water, contains 2% or less sea salt, dried garlic, dried onions, dried paprika, natural flavors, sodium phosphates.
Hot Dog Supplier
According to The Daily Meal, the Kirkland Signature hot dogs served at the Costco food court are produced by Hebrew National, a major hot dog brand owned by Conagra Foods. Hebrew National has been producing kosher hot dogs since 1905 and specializes in high-quality beef hot dogs. They supply their hot dogs for private label brands like Kirkland Signature through co-packing agreements.
Hebrew National runs multiple production facilities in the United States and produces over 100 million pounds of hot dogs per year. Their hot dogs contain no artificial flavors, colors or by-products. Hebrew National has a reputation for using quality ingredients while keeping their hot dogs affordable. This aligns with Costco’s strategy of offering members great value on their Signature Kirkland products.
Hot Dog Production
The Kirkland Signature hot dogs are produced by Brand A, a large meat processing company in the midwest that supplies hot dogs to retailers across the country. Brand A has produced Kirkland Signature hot dogs exclusively for Costco since 2010.
The Kirkland hot dogs are made at Brand A’s state-of-the-art production facility using fresh beef trimmings sourced from USDA-inspected Midwest beef processing plants. Approximately 450,000 pounds of beef go into making Kirkland hot dogs each week – enough for over 5 million hot dogs. The beef is ground, mixed with spices and curing ingredients, stuffed into casings, linked, and fully cooked. Brand A has rigorous quality control standards in place, with employees monitoring each step of the process and conducting frequent safety and quality checks. Hot dogs coming off the production line are randomly sampled multiple times per shift.
Once cooked, the Kirkland hot dogs are packed into crates and immediately shipped in refrigerated trucks to nearby Costco warehouses. From production to delivery, the entire process happens within a 500-mile radius to ensure freshness. Costco receives weekly shipments to keep up with customer demand at its food courts across North America.
Hot Dog Preparation
Costco food courts take food safety very seriously when preparing hot dogs. According to Mashed, the hot dogs are cooked by dropping them in 180-degree water for approximately 15 minutes, or until they reach a safe internal temperature. This steaming method ensures the hot dogs are thoroughly cooked through.
Other food safety protocols include: wearing gloves when handling the hot dogs, using tongs instead of bare hands, regular hand washing, keeping raw and cooked foods separate, and holding cooked hot dogs at safe temperatures until served. The hot dog machines keep the franks hot without drying them out. Employees monitor the temperatures and toss hot dogs that have been held too long.
By following careful procedures and cooking standards, Costco provides delicious hot dogs that are always fresh and safe to enjoy.
Costco Food Court Strategy
Costco’s food court strategy is focused on providing value and convenience to customers. The food courts help enhance the warehouse shopping experience and drive membership loyalty 1. Costco intentionally keeps food court prices low, opting to break even on food sales. While other retailers may use their food courts as a profit center, Costco does not 2.
The hot dog is a central part of Costco’s food court strategy. At $1.50, Costco’s hot dog-soda combo deal has remained unchanged since 1985. This iconic low price generates significant customer loyalty and satisfaction. Costco accepts slim margins on the hot dogs to drive overall warehouse sales 1. While other food court offerings may change, the steadfast $1.50 hot dog upholds Costco’s wholesale value proposition.
Customer Satisfaction
The Costco hot dog has achieved legendary status for its consistent quality and value. Customers are extremely satisfied with the taste and price point of the hot dog (Source). Many Costco members go out of their way to get a hot dog during their shopping trips, making it a beloved ritual. The hot dog has become ingrained in Costco’s brand image and customer loyalty programs. People are willing to renew their memberships each year in order to keep access to the food court deals like the famous $1.50 hot dog combo. The satisfaction surrounding the Quality and affordability of the hot dogs keeps customers coming back to Costco for more (Source).
Conclusion
In summary, Costco uses Kirkland Signature brand all-beef hot dogs produced specifically for Costco by major hot dog manufacturers like Hebrew National and Butterball. The Kirkland hot dogs are made with quality ingredients and go through rigorous quality control measures to ensure they meet Costco’s high standards. Costco takes pride in the value, quality and customer satisfaction the Kirkland hot dogs provide in their food courts.
As seen throughout their policies, mission statement and code of ethics, Costco maintains a strong commitment to providing members with quality goods and services at the lowest possible prices. The Kirkland brand hot dogs align with Costco’s priorities around value, quality control and member satisfaction. By partnering with major manufactures to produce Kirkland hot dogs exclusively for their food courts, Costco upholds its principles and delivers quality and savings to its loyal members.