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Most people know you typically need a Costco membership to enjoy deals at the warehouse club. But until recently, that rule actually didn’t always apply to some of the very best bargains available.
See, while Costco’s food court was intended for members, the rule wasn’t really enforced. As a result, many non-members were able to enjoy its low prices for yummy treats — including a $1.50 hot dog and soda combo.
That changed last month, with Costco posting signs in some locations warning that, “Effective April 8, 2024, an active Costco membership card will be required to purchase items from our food court. You can join today. Please see our membership counter for details.”
If you’re been enjoying the delights of Costco’s food court with no membership card, that means the party is over. But now for the big question: Should you join for the hot dog?
Is Costco’s hot dog deal worth becoming a member for?
Costco’s famous hot dog deal allows you to pay $1.50 for a quarter-pound hot dog and a refillable 20-ounce soda. The price hasn’t changed since 1984, and the deal is so popular that Costco actually sells around 100 million hot dogs annually — all at a loss.
That’s a pretty unbeatable price for what amounts to a full dinner. However, with Costco cracking down and limiting access to members only, you’d now have to pay the warehouse club’s membership fee to be eligible.
While Costco has two membership tiers, you’re looking at a minimum of $60 coming out of your bank account yearly for the entry-level Gold Star membership. And that’s a good amount of money to pay just to access the food court.
If you’re dining out enough there, though, it may actually be worth the price — even if you don’t actually get anything else at the warehouse club. To see why, just compare it to the cost of some other dogs from other chains offering a similar meal. While there may be some regional price variation, here’s a sampling of what you might pay for a hot dog and soda elsewhere:
- Five Guys: $7.49 for an all-beef hotdog plus $3.09 for a 24-ounce drink for a total of $10.58
- Sonic: $3.09 for an All-American hotdog plus $1.14 for a medium Coca-Cola for a total of $4.23
- Shake Shack: $4.49 for a 100% beef hotdog plus $3.79 for a large drink for a total of $8.28
Hotdog savings add up
So, at the low end of the scale, you’re looking at saving at least $2.73 on your meal each time you get a hotdog at Costco versus somewhere else. At the high end, you’re saving $9.08 every time.
This means, if you buy between seven and 21 hot dogs over the course of a year, this purchase alone could justify the Costco membership price. It’s really not that hard to imagine eating that many — especially if you tend to visit on a pretty regular basis with a partner or friend.
If you’re upset about Costco’s crackdown, it may just be time to pony up and buy that membership after all. You can keep enjoying your dinner there and may even decide you want to take advantage of some of the other perks the warehouse offers.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
I was instrumental in Costco coming to knox. Now i am so sorry for that! And i stopped going to when they tried to force me to wear a mask which had not a d^^^m thing to do with keeping you from getting the hoax virus, Its like installing a chain link fence to keep out fly’s/wasps/skeeters/insects, Its just a form of control!!!
I hated the masks because as you say they are worthless and nothing more than an uncomfortable hassle and a compliance device. But they probably either were required to have people wear them, or else did so because the general public was convinced (fooled) to think that wearing masks would prevent the spread of Covid. Even now they talk about wearing a mask sometimes.
Costco is a NGO and can set its policies as it wishes. Membership cards are needed only at food courts located outside the main store, I’m sure Costco is sad in loosing your patronage.
So I can’t wait to get a membership++, if it will somewhat curb the F tards from coming in and stealing everything, thus driving up prices for the honest folks!
O.B.T.W. Hell no it ain’t worth paying the fee for the dog!!! Go buy you a pack of dogs go home and make your own dog if you wanna eat that SHHHHSTUFF,
I can already see the posts. “If they think I’m going to pay them $60 to buy a hot dog, they’re crazy!”
Don’t want to pay for a membership? Buy your $1.49 hot dog and soda at the place where you DO shop. Good luck.
Well, that is dumb as hell! My Costco is in a large mall and half their foot traffic comes from mall shoppers and the AMC theaters located in the mall also! We are talking teenagers and minors! They are not going to purchase a Costco membership to save 50 cent on a hotdog!
Tough! Sometimes there are excessive lines and full tables for the crowd. If you takeout the non-members perhaps this Old 40 + year member can get a hot dog.
Costco loses money on the dogs as it is an incentive to shop there. Don’t think they care that you won’t be getting their dogs…
You do realize that Costco loses money on each low priced hotdog and soda combo. Costco is better off if these people who do not have memberships do not buy these items.
I never cared for the hot dogs much, but used to love their Polish sausages. Sadly, they were eliminated from the menu.
Sam’s Club in north Seattle, now closed used to allow local high school kids without membership to come in for lunch.
I left the Costo “club” back in the late 90’s. There are so many better places to shop. GFY Costco.
Wow gotta lotta haters out there. I love Costco personally, if the $1.50 Hot dogs ain’t good enoug for ya, and you don’t have a membership card ya’ll probably don’t know about they’re unbelievable deal on whole roasted Chickens for a whopping $4.99! Not just A MEAL. But several meals. Can’t beat that anywhere not even make it yourself! Get the membership, don’t be cheap. About the masks, bunch’s idiots, I never wore my mask in costco and no one ever said a word about it. Even in Commiefornia.
If the size of the people that shop at Costco is any indication and the sodium nitrate filled dogs I would avoid the Food Court at all costs member or non-member.
That’s not really the issue here, more like what if the ill hotdog was eliminated for availability do to local crime?
Do you not know that NO2( nitrous oxide) is what regulates blood pressure? The hot dog is a fantastic deal (100% beef 1/4#) with a drink, they added a cup of ice cream for $1.99 that is a great deal with full size pizza for $9.99 is incredible. Other deals are $4.99 roasted chicken and gas station consistently lowest fuel price, prescriptions are very competitive.Otherwise prices on most items can be beat by shopping sales and discounting but stable prices help even out costs when seasonal prices vary greatly.
I wanted to go to a new one in TN that opened near me. I had never been in a Costco before and just wanted to look and see what they had on the shelves….not intending to buy anything, but not ruling out a membership. I explained all of this to the overly-officious 60-ish jerk whom they had hired to “man” the front door area. Amazingly…..to me anyway….he refused me entrance and said that the only way I could look around was to get a membership. (Not making this up.) I held my tongue, turned around and walked out, vowing never to get near a Costco again. Of course, it’s a Seattle company….with the totalitarian/woke mentality inherent in that part of the country.
They usually have someone go walk around with you if checking it out
My husband and I used to shop at Costco a lot back in the 90s and early 2000s. We had 2 young kids and it was the best and cheapest way to keep enough supplies in the house. Both kids are boys and keeping food in the house as the boys grew was a challenge. Costco was our best choice. Once the boys hit their 20s and had steady jobs, they weren’t eating at home as often and we let our membership lapse. I think since then we’ve picked up a pizza once or twice and stopped for a hot dog once. We won’t miss it.
My Costco has been asking for a membership card at our outside food court for years.
“ Is Costco’s hot dog deal worth becoming a member for?”
Wrong question.
Right question: Why would anyone think the membership isn’t worth it?
In my case, when I lived in Manhattan, I simply did not have the room to put the large Costco packages. Now living in a suburb, I save money on purchases, get a percentage cash refund based on what I buy, pay 40 to 60 cents a gallon less for gas than any other station around – and gas purchases get added to the amount I get a cash refund on.
If there were no hot dogs it would still be worth it. However I’m glad to see that Costco will no longer nick me and other members to subsidize the hot dogs.