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

mentalfloss.com

71–80 of 135 posts

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

#71

> 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. The link supporting this claim refers to changes in San Francisco and Seattle locations as a result of city ordinances, not a statewide change in California.

Why dont they just remove the sugar from the syrup and offer packets or liquid syrup in containers like at coffee shops?

With dry table sugar, at least, it would be a lot of work. A large Coke from McDonald's has about 70 grams of sugar* and a typical sugar packet contains 2.8 grams. You'd need to stir in twenty five packets to get to the standard recipe level of sweetness.

*Equivalent amount of table sugar (sucrose)--the syrup may use high fructose corn syrup instead.

Edit: on further reflection, we should do this. It's a much more vivid illustration of how much sugar we consume through soda than an abstract calorie number.

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

#72
post #16

Earlier quoted context omitted.

Except you don't have to be a member to eat at Costco.

While true I don't think this is widely known, and even less widely practiced. For those who are unaware, you just need go in through the exit to avoid the card checkers and that's where the food is.

Just tell them you're going to the pharmacy, they'll happily point you to where it is and you can then go wherever you want.

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

#73

While the article starts with a "we're losing money on these" anecdote, the article does not say that they're losing money in terms of selling the combo below cost. They are selling it for less than the market will bear, but that also applies to the rotisserie chickens ($5/3lb vs grocery stores at 2lb). If it makes you feel better, think of the lost $0.50-$2 as being silently charged to their marketing budget behind…

> but that also applies to the rotisserie chickens ($5/3lb vs grocery stores at 2lb).

It's a common myth that rotisserie chickens are cheaper than frozen. If you do the math you'll find that rotisserie chickens are slightly more expensive.

See: https://www.ams.usda.gov/mnreports/pywretailchicken.pdf

> Rotisserie, Under 2lb, Norwest cost is $5.73/lb on average

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

#74

Earlier quoted context omitted.

Fresh whole milk freezes ok, and only takes a few days to thaw out in a fridge. Same with bread, btw. (To be fair, I think I'm the only person I know who does this)

I've known people to freeze bagels. Apparently they toast more or less equivalently compared to bagels stored above freezing.

This is correct. I don't eat enough bread (or bagels) to warrant buying entire loaves at a time, even, and they will grow mold before I can eat them. Freezing them works great for me and prevents mold.

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

#75
post #18

Earlier quoted context omitted.

Your examples don't makes sense, as bread and milk (which Costco sells as multi-packs) keep fine in storage. Buying perishables and junk food would be a better example. Costco electronics prices are competitive and have the best return policy and practice in the industry.

Bread and milk are considered by most people to be perishable -- they go bad within a few weeks of purchase. Non-perishable goods are canned or sealed items that can be kept for years in cool, dark, dry places.

Frozen bread lasts for ~6 months to a 1 year. Which is hardly going to be an issue for most people.

Unopened milk does not last nearly as long. Still, it can last for ~3 weeks at home depending on how it's preserved, how old is was when you got it, and if you keep your fridge cold enough. Which again should be plenty if you actually use milk.

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

#76

Earlier quoted context omitted.

Why dont they just remove the sugar from the syrup and offer packets or liquid syrup in containers like at coffee shops?

They could, and then a mandatory charge for sugar packets (like there is for grocery bags) would be legislated.

But if the objective is to reduce sugar consumption shouldn't there be a sugar packet tax now, as part of the soda tax?

Butt for butt my local Starbucks isn't any different than BK, MD, etc.

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

#77
post #24

Earlier quoted context omitted.

The modern world. Milk no longer goes bad quickly.

I guess it depends on the definition of "quickly" and also where you live. In some cities I've lived, the expiration date of milk was often two or three weeks out. In other cities, it was 10 days maximum. I think it's because dairies (and cows) are not equally plentiful in every part of the country. One thing I have noticed is that in the places where regular milk expires in 10 days, the organic milk (which one famil…

Sell by dates are basically a fiction. https://www.fsis.usda.gov/wps/portal/fsis/topics/food-safety...

only limitation is: infant formula and false advertising (defined in https://www.law.cornell.edu/cfr/text/9/317.8 )

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

#78

"Enigma" It's called a loss leader.

Well, if they were actually losing money on it, it would be a loss leader.

But since the actual cost of the dog, bun, cup, soda, paper plate, napkins, condiments, labor and depreciation comes in under $1.50, it's not a loss. It's just money left on the table.

Except -- it probably isn't. Costco isn't really a restaurant, it's a store which carries a limited number of high-value items packaged in bulk. The hot dogs (and the other low-priced food up front) are a form of complementary good, which more than pays for itself by enticing people to come in on their lunch breaks and shop for fifteen to thirty more minutes than they would if they had to stop for fast food somewhere else. And it keeps kids quiet when the parents want to spend more time there.

Department stores have repeatedly rediscovered the utility of having a decent food option available on-premises - Neiman Marcus, Macy's, Ikea.

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