Look out, Costco. Sam’s Club drops its hot dog combo to $1.38

Nov 15, 2022, 3:03 PM | Updated: 3:12 pm
FILE - In this Sept. 9, 2010 file photo, a store associate watches as a customer leaves with her pu...
FILE - In this Sept. 9, 2010 file photo, a store associate watches as a customer leaves with her purchases at Sam's Club in Jackson, Miss. (AP Photo/Rogelio V. Solis, file)
(AP Photo/Rogelio V. Solis, file)

(CNN) — There’s a retail price war on hot dog and soda combos.

Sam’s Club has lowered the price of its hot dog and drink deal at its food courts to $1.38 from $1.50. Its chief rival, Costco, offers the same combo for $1.50.

“New lower price. Same great hot dog & drink combo,” Sam’s Club said in an advertisement on its website. “Frankly, it can’t be beat.”

Sam’s Club, owned by Walmart, announced the move Tuesday. The chain pointed to the price reduction as an example of ways it offers bargains to shoppers stretched by inflation heading into the holidays.

“The members’ dollar [is] going further at Sam’s Club, too, with racks of lamb and lobster tails priced more than 40% lower than last year,” Walmart CEO Doug McMillon said on an earnings call Tuesday.

The price of frankfurters rose 15.2% annually in October, but Sam’s Club and Costco offer cheap hot dogs as a perk for their members.

Costco’s hot dog-soda deal has cost $1.50 since it was introduced at its food courts in the mid-1980s. Last year, Costco sold 122 million hot dog-soda combos globally.

Jim Sinegal, Costco’s co-founder, once told the company’s current CEO, Craig Jelinek, “If you raise the effing hot dog, I will kill you. Figure it out.”

Hot dog combos priced at $1.50 are often a loss leader for the companies, especially as costs rise, but it’s a strategy designed to get customers to stay in stores longer.

Stops at food courts encourage shoppers to hang around. That extra time increases the chance that they will make an unplanned purchase after they’re finished eating.

The companies use a similar strategy with rotisserie chickens. Despite the cost of poultry going up, Costco’s rotisserie chickens still cost $4.99, while Sam’s Club go for $4.98.

The rotisserie chicken is a prized item for supermarkets because it pulls customers into stores. Typically, customers will shop around and buy more than just a chicken for dinner when they visit.

The-CNN-Wire™ & © 2022 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

Top Stories


Shara Park

West Valley business sees lots of in-person activity on Black Friday

A record 166.3 million people are expected to shop between Black Friday and Cyber Monday. While a lot of that business is done online, there is still a strong appetite for visiting locally owned stores.
1 day ago
Ticketmaster website...
BROOKE SCHULTZ Associated Press/Report for America

Taylor Swift ticket trouble could drive political engagement

On the heels of a messy ticket rollout for Taylor Swift's first tour in years, fans are angry. They're also energized against Ticketmaster. While researchers agree that there's no way to tell how long the energy could last, the outrage shows a way for young people to become more politically engaged through fan culture. This isn't even the first time a fandom or an artist has targeted Ticketmaster. And Swifties say it's not just about getting a ticket. The ticket debacle has spurred broader conversations about economic inequality and political action.
4 days ago
Bill and Diane Sartain, owners of Tutoring Toy Store in Foothill Village. (KSL-TV)...
Jed Boal

Local businesses expect high turnout in Christmas sales

As business owners and shoppers prepare for Black Friday and Small Business Saturday, retail spending has been surprisingly strong this quarter.
5 days ago
Snoop Dogg has launched a line of pet accessories called "Snoop Doggie Doggs." (Credit: Snoop Doggi...
Zoe Sottile, CNN

After rapper launches pet accessory brand, now your dog can dress like Snoop Dogg

The rapper and entrepreneur is expanding into pet fashion with Snoop Doggie Doggs, his new brand of pet accessories.
7 days ago
Theranos founder and former CEO Elizabeth Holmes goes through a security checkpoint as she arrives ...
MICHAEL LIEDTKE AP Technology Writer

Elizabeth Holmes gets 11+ years in prison for Theranos scam

A federal judge on Friday sentenced disgraced Theranos CEO Elizabeth Holmes to more than 11 years in prison for duping investors in the failed startup that promised to revolutionize blood testing but instead made her a symbol of Silicon Valley's culture of audacious self-promotion.
8 days ago
The General Motors logo is displayed at a Chevrolet dealership on August 4, 2021 in Burbank, Califo...

GM CEO Barra says electric vehicles to be profitable by 2025

General Motors expects its portfolio of electric vehicles to turn a profit in North America by 2025.
9 days ago

Sponsored Articles

house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Portrait of smiling practitioner with multi-ethnic senior people...
Summit Vista

How retirement communities help with healthy aging

There are many benefits that retirement communities contribute to healthy aging. Learn more about how it can enhance your life, or the life of your loved ones.
Look out, Costco. Sam’s Club drops its hot dog combo to $1.38