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.

The Great Tryptophan Lie: Eating Turkey Does Not Make You Tired

bhofack2/iStock via Getty Images
bhofack2/iStock via Getty Images

While you’re battling your cousins for the best napping spot after Thanksgiving dinner, feel free to use this as a diversion tactic: It’s a myth that eating turkey makes you tired.

It’s true that turkey contains L-Tryptophan, an amino acid involved in sleep. Your body uses it to produce a B vitamin called niacin, which generates the neurotransmitter serotonin, which yields the hormone melatonin, which helps regulate your sleeping patterns. However, plenty of other common foods contain comparable levels of tryptophan, including other poultry, meat, cheese, yogurt, fish, and eggs.

Furthermore, in order for tryptophan to produce serotonin in your brain, it first has to make it across the blood-brain barrier, which many other amino acids are also trying to do. To give tryptophan a leg up in the competition, it needs the help of carbohydrates. Registered dietitian Elizabeth Somer tells WebMD that the best way to boost serotonin is to eat a small, all-carbohydrate snack a little while after you’ve eaten something that contains tryptophan, and the carbs will help ferry the tryptophan from your bloodstream to your brain.

But Thanksgiving isn’t exactly about eating small, well-timed snacks. It’s more about heaps of potatoes, mountains of stuffing, and generous globs of gravy—and that, along with alcohol, is more likely the reason you collapse into a spectacular food coma after your meal. Overeating (especially of foods high in fat) means your body has to work extra hard to digest everything. To get the job done, it redirects blood to the digestive system, leaving little energy for anything else. And since alcohol is a central nervous system depressant, it also slows down your brain and other organs.

In short, you can still hold turkey responsible for your Thanksgiving exhaustion, but you should make sure it knows it can share the blame with the homestyle mac and cheese, spiked apple cider, and second piece of pumpkin pie.

[h/t WebMD]

How Mammoth Poop Gave Us Pumpkin Pie

MargoeEdwards/iStock via Getty Images
MargoeEdwards/iStock via Getty Images

When it’s time to express gratitude for the many privileges bestowed upon your family this Thanksgiving, don’t forget to be grateful for mammoth poop. The excrement of this long-extinct species is a big reason why holiday desserts taste so good.

Why? Because, as Smithsonian Insider reports, tens of thousands of years ago, mammoths, elephants, and mastodons had an affinity for wild gourds, the ancestors of squashes and pumpkin. In a 2015 study published in the Proceedings of the National Academy of Sciences, a Smithsonian researcher and colleagues found that wild gourds—which were much smaller than our modern-day butternuts—carried a bitter-tasting toxin in their flesh that acted as a deterrent to some animals. While small rodents would avoid eating the gourds, the huge mammals would not. Their taste buds wouldn't pick up the bitter flavor and the toxin had no effect on them. Mammoths would eat the gourds and pass the indigestible seeds out in their feces. The seeds would then be plopped into whatever habitat range the mammoth was roaming in, complete with fertilizer.

When the mammoths went extinct as recently as 4000 years ago, the gourds faced the same fate—until humans began to domesticate the plants, allowing for the rise of pumpkins. But had it not been for the dispersal of the seeds via mammoth crap, the gourd might not have survived long enough to arrive at our dinner tables.

So as you dig into your pumpkin pie this year, be sure to think of the heaping piles of dung that made the delicious treat possible.

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