As a professional hot dog vendor, I can tell you Costco is not losing money,…they are breaking even. As a small time independent guy, my cost for a 1/4 lb. all beef dog is today right at about $1. Then add the bun for .30 cents, and various condiments, etc,…the hard cost to me is $1.50, not including propane to fire the cart, gas to drive out to my location and my time and labor. With Costco’s buying power, I’m sure their cost is much less. I charge $6 out on the street corner. But that’s because I need this single product to support me in everything I do. Costco isn’t doing that. They want you in the door to buy other (more profitable) stuff.
No one has mentioned that Five Guys is the burger joint for people with more money than brains.
On the major thoroughfare below my condo, there’s a Five Guys in the strip mall on the access road to that street. 1/4 mile east there’s a BK, 1/4 west there’s a Mikey D’s. The only days of the week when there’s any vehicles outside Five Guys are Fri and Sat afternoon.
I agree. We started going to 5 Guys because they actually got our orders right and had decent condiment options.
Sonic was a disaster (my daughter’s order with no onions was never correct)
In-n-Out burgers are overrated (IMO) with no options for things bacon
BK, Carls Jr, and McDs are all just meh.
Hardees here, Carls Jr. in other places, when down hill years ago. Their thick burgers and Philly Cheesesteak burgers use to rock, now they just taste like rocks.
Costco loses money on each hot dog (I prefer the Polish sausage) they sell to their members. The price is the same as when it was introduced in 1984.
It’s definitely a “loss leader”, but it sure is effective marketing!!
(I read where somebody suggested they either discontinue or raise the prices, they got hammered down!!)
I’ll take it in the ass for $7.49, but not a $1.63….
As a professional hot dog vendor, I can tell you Costco is not losing money,…they are breaking even. As a small time independent guy, my cost for a 1/4 lb. all beef dog is today right at about $1. Then add the bun for .30 cents, and various condiments, etc,…the hard cost to me is $1.50, not including propane to fire the cart, gas to drive out to my location and my time and labor. With Costco’s buying power, I’m sure their cost is much less. I charge $6 out on the street corner. But that’s because I need this single product to support me in everything I do. Costco isn’t doing that. They want you in the door to buy other (more profitable) stuff.
It used to be called a “Loss Leader”, but I don’t know if that term applies to food….
wouldn’t want to say that Costco has been (successfully) trying to drive “the little guy” out of business
I pay a yearly fee to get a $1.50 hot dog at Costco.
First, Costco makes their own dogs now. Second, one guy in six has a big wiener.
Probably because costco is big into dei and those are probably the remnants of the tranny surgeries slapped on a bun.
No one has mentioned that Five Guys is the burger joint for people with more money than brains.
On the major thoroughfare below my condo, there’s a Five Guys in the strip mall on the access road to that street. 1/4 mile east there’s a BK, 1/4 west there’s a Mikey D’s. The only days of the week when there’s any vehicles outside Five Guys are Fri and Sat afternoon.
In a 5 Guys exactly twice, I feel I got ripped off both times. Just not worth it.
I agree. We started going to 5 Guys because they actually got our orders right and had decent condiment options.
Sonic was a disaster (my daughter’s order with no onions was never correct)
In-n-Out burgers are overrated (IMO) with no options for things bacon
BK, Carls Jr, and McDs are all just meh.
Hardees here, Carls Jr. in other places, when down hill years ago. Their thick burgers and Philly Cheesesteak burgers use to rock, now they just taste like rocks.
We only have Igorburgers now, we smoke ’em on our Traeger. YUM !!