I’m not sure it’s a “loss leader”. Hot dogs are cheap. And some are much cheaper than others
Well, if they’re not selling the dog-and-soda combo for a loss, they’re pretty damned close to that.
What’s included?
Per unit costs:
1. It’s a 1/4-pound beef frank. Granted, the lowest grade beef is used for hot dogs, but nonetheless it’s pretty tasty.
2. Bun. It’s a large roll with sesame seeds.
3. Paper or foil wrapper
4. Paper cup
5. Drinking straw
6. Soda-cup lid
7. Pepsico soda syrups
8. Carbonated water
9. Ice
10. Condiments (mustard, ketchup, relish
Then you get into related expenses;
Snack bar employee salary and benefits
Point-of-sale order kiosk equipment
None of this is free.
Yeah, there are some real nasty dogs out there. At a buck and a half, I don't think we could expect much..
Many of the people eating in Costco have children with them. People with a lot of children buy in bulk.
It’s their gasoline prices that I find amazing - fifty cents a gallon cheaper. If you use their credit card it’s even cheaper than that.