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.

You Can Now Order—and Donate—Girl Scout Cookies Online

It's OK if you decide to ignore the recommended serving size on a box of these beauties.
It's OK if you decide to ignore the recommended serving size on a box of these beauties.
Girl Scouts

Girl Scouts may have temporarily suspended both cookie booths and door-to-door sales to prevent the spread of the novel coronavirus, but that doesn’t mean you’ll be deprived of your annual supply of everyone’s favorite boxed baked goods. Instead, you can now order Thin Mints, Tagalongs, and all the other classic cookies online—or donate them to local charities.

When you enter your ZIP code on the “Girl Scouts Cookie Care” page, it’ll take you to a digital order form for the nearest Girl Scouts organization in your area. Then, simply choose your cookies—which cost $5 or $6 per box—and check out with your payment and shipping information. There’s a minimum of four boxes for each order, and shipping fees vary based on quantity.

Below the list of cookies is a “Donate Cookies” option, which doesn’t count toward your own order total and doesn’t cost any extra to ship. You get to choose how many boxes to donate, but the Girl Scouts decide which kinds of cookies to send and where exactly to send them (the charity, organization, or group of people benefiting from your donation is listed on the order form). There’s a pretty wide range of recipients, and some are specific to healthcare workers—especially in regions with particularly large coronavirus outbreaks. The Girl Scouts of Greater New York, for example, are sending donations to NYC Health + Hospitals, while the Girl Scouts of Western Washington have simply listed “COVID-19 Responders” as their recipients.

Taking their cookie business online isn’t the only way the Girl Scouts are adapting to the ‘stay home’ mandates happening across the country. They’ve also launched “Girl Scouts at Home,” a digital platform filled with self-guided activities so Girl Scouts can continue to learn skills and earn badges without venturing farther than their own backyard. Resources are categorized by grade level and include everything from mastering the basics of coding to building a life vest for a Corgi (though the video instructions for that haven’t been posted yet).

“For 108 years, Girl Scouts has been there in times of crisis and turmoil,” Girl Scouts of the USA CEO Sylvia Acevedo said in a press release. “And today we are stepping forward with new initiatives to help girls, their families, and consumers connect, explore, find comfort, and take action.”

You can order cookies here, and explore “Girl Scouts at Home” here.

Can't Find Yeast? Grow Your Own at Home With a Sourdough Starter

Dutodom, iStock via Getty Images
Dutodom, iStock via Getty Images

Baking bread can relieve stress and it requires long stretches of time at home that many of us now have. But shoppers have been panic-buying some surprising items since the start of the COVID-19 crisis. In addition to pantry staples like rice and beans, yeast packets are suddenly hard to find in grocery stores. If you got the idea to make homemade bread at the same time as everyone on your Instagram feed, don't let the yeast shortage stop you. As long as you have flour, water, and time, you can grow your own yeast at home.

While many bread recipes call for either instant yeast or dry active yeast, sourdough bread can be made with ingredients you hopefully already have on hand. The key to sourdough's unique, tangy taste lies in its "wild" yeast. Yeast is a single-celled type of fungus that's abundant in nature—it's so abundant, it's floating around your home right now.

To cultivate wild yeast, you need to make a sourdough starter. This can be done by combining one cup of flour (like whole grain, all-purpose, or a mixture of the two) with a half cup of cool water in a bowl made of nonreactive material (such as glass, stainless steel, or food-grade plastic). Cover it with plastic wrap or a clean towel and let it sit in a fairly warm place (70°F to 75°F) for 24 hours.

Your starter must be fed with one cup of flour and a half cup of water every day for five days before it can be used in baking. Sourdough starter is a living thing, so you should notice is start to bubble and grow in size over time (it also makes a great low-maintenance pet if you're looking for company in quarantine). On the fifth day, you can use your starter to make dough for sourdough bread. Here's a recipe from King Arthur Flour that only calls for starter, flour, salt, and water.

If you just want to get the urge to bake out of your system, you can toss your starter once you're done with it. If you plan on making sourdough again, you can use the same starter indefinitely. Starters have been known to live in people's kitchens for decades. But to avoid using up all your flour, you can store yours in the fridge after the first five days and reduce feedings to once a week.

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