The Enduring Enigma of Costco's $1.50 Hot Dog and Soda Combo

iStock // Tim Boyle, Getty Images
iStock // Tim Boyle, Getty Images

When Costco president W. Craig Jelinek once complained to Costco co-founder and former CEO Jim Sinegal that their monolithic warehouse business was losing money on their famously cheap $1.50 hot dog and soda package, Sinegal listened, nodded, and then did his best to make his take on the situation perfectly clear.

"If you raise [the price of] the effing hot dog, I will kill you," Sinegal said. "Figure it out."

Taking his words to heart, Jelinek—who became Sinegal's successor in 2012—has never raised the price on Costco's hot dog. Incredibly, it has sold for the same $1.50 since the retail club first introduced the dogs to customers in 1984. The quarter-pound, all-beef tube and 20-ounce soda combo appears to be inflation-proof and immune to the whims of food distributors. How does Costco do it?

Simple. When it comes to hot dogs, Costco doesn't price according to what the market will bear. They price according to their own cost and according to the value the hot dogs can afford them.

According to Jelinek, people would pay $1.75, and maybe more, for the deal. But is that extra 25 cents going to be more valuable than the goodwill and foot traffic generated by a combo that's stuck to its price point for nearly 35 years? Probably not. Customers coming in to shop at Costco are amused, satisfied, and fueled by the hot dog meal. If they get it just before leaving the store, they're left with a lasting impression of being treated well. That's worth more than keeping up with inflation.

That means Costco needs to maintain the food court staple with an eye on a steady price. When supply costs threatened to increase in 2009, the company made a major decision: They stopped using Hebrew National, makers of the all-kosher dog that they had used since 1984, and decided to move hot dog production in-house. A Kirkland's Signature hot dog plant was constructed in Los Angeles. When they needed to ramp up production, they built a second plant in Chicago.

They've also had to keep costs on the soft drink side in line. When their deal with Coca-Cola was set to increase the price, Costco opted to sign with Pepsi in 2013, ensuring that their trademark $1.50 price sticker would be kept intact.

Today, Costco sells over 100 million hot dogs annually, which is more than every MLB stadium combined. And they continue to prove surprisingly adept at anything that could add even a single cent to the deal. When California recently enacted a soft drink tax that would have raised the consumer's cost, Costco locations in the state switched the combo to include Diet Pepsi. (Diet drinks are exempt from the law.) The company's "effing hot dog" will continue to remain a steal for the foreseeable future.

Fuel Your Cold Brew Obsession With This Elegant, Efficient Coffee Maker

Brrrewer
Brrrewer

The sun is scorching, the days are endless, and the gentle clinking of ice cubes in a glass of cold brew coffee sounds like chimes at the gates of heaven itself.

A beverage so divine deserves to be created by a machine to match, right? Meet Brrrewer, a coffee maker that will provide you with the smoothest, sweetest, richest cold brew coffee you’ve ever had—and it’ll do it in just four hours.

Brrrewer uses the cold drip method to brew coffee in which coffee grounds are suspended between two microfilter membranes. Water is poured over the top membrane, then slowly filters through the coffee grounds and drips out from the bottom membrane. The top membrane ensures that the water is evenly distributed among the coffee grounds, and the bottom membrane allows only the water-turned-coffee to fall into the carafe below, without any of the gritty residue. (That gritty residue is often a result of the full immersion method, which is popular among those with French presses; basically, you just steep your coffee grounds in cold water for 12 to 24 hours, strain out the grounds, and drink.)

The carafe is encased in a second layer of glass, providing thermal insulation and keeping your coffee cold for longer than a regular glass bottle or pitcher. And you can cross “coffee filters” off your shopping list—the microfilter membranes do that job already.

The Italy-based team at Essense designed Brrrewer with elegance and minimalism in mind, so it won’t throw off the aesthetic groove of your kitchen. In fact, it might enhance it. Also, it’s manufactured from a combination of borosilicate glass and BPA-free Tritan plastic; in other words, it’s extra-sturdy and environmentally friendly.

Mixologist Francesco Corona, five-time Italian “Coffee in Good Spirits” champion and world championship finalist, worked with Essense to develop special cocktail recipes for Brrrewer, which you can find in the paperback book, available on its own for $17 or with Brrrewer (the book and coffee maker combo is $78). Order Brrrewer by itself for $67 here, or see other purchase options from Kickstarter.

If four hours is more than you’re willing to wait for cold brew, check out Ninja’s Hot & Cold Brewed System, which can make it in about 15 minutes.

Mental Floss has affiliate relationships with certain retailers and may receive a small percentage of any sale. But we choose all products independently and only get commission on items you buy and don’t return, so we’re only happy if you’re happy. Thanks for helping us pay the bills!

‘Budget Meal Planner’ Website Shows You How to Eat Well on $5 Per Day

DragonImages/iStock via Getty Images
DragonImages/iStock via Getty Images

Eating on a budget is often associated with instant ramen, fast food, and other meal options that offer a lot of convenience and not so much nutrition. But finding cheap, healthy ingredients at the grocery store is far from impossible: Many healthy staples—like brown rice, canned black beans, eggs, bananas, and sweet potatoes—can be purchased for less than $1 per serving. The one downside to buying fresh ingredients is that some planning is required to get them on the plate. You may still have to do the shopping and cooking yourself, but by using the website Budget Meal Planner, you won't have to worry about brainstorming new meal ideas each week.

According to Lifehacker, every meal plan on Budget Meal Planner can be made for less than $5 a day—which is roughly equivalent to the average food stamp allotment in the United States. Every meal plan includes grocery lists and recipes for seven days worth of breakfasts, lunches, and dinners. The plans on the site are broken down into different themes, including mushroom, Thai, Tex-Mex, potato, and Mediterranean. The recipes listed may be cheap and healthy, but they don't skimp on flavor. With Tex-Mex, you'll get chicken tacos, stuffed bell peppers, and chili. Choose Thai and enjoy Thai chicken cabbage wraps with peanut sauce and Thai yellow chicken curry.

The site includes meat-free options as well. Just select "vegetarian" beneath the "meal plans" tab for vegetarian versions of Budget Meal Planner's recipes lists. The vegetarian take on the Thai meal plan, for example, uses tofu instead of chicken and mushrooms instead of beef.

All of the meal plans on the website are free, but you can support the project by donating to the creator's Patreon. Patrons also have the opportunity to suggest new meal plan themes they'd like to see each week.

Budget Meal Planner publishes a new themed meal plan every Friday, and you can subscribe to the website's newsletter to stay updated. Here are some more helpful tips for planning your meals.

[h/t Lifehacker]

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