Costco is on track to open a massive chicken operation about a year from now in eastern Nebraska, bringing more of the supply chain for its strategically and symbolically important $5 rotisserie chicken under its own wing.
In 2013, Costco chief financial officer Richard Galanti called the birds “the new hot dog” – a reference to the $1.50 hot dog and soda combo that is practically the retailer’s corporate symbol.
By delving deeper into the chicken supply chain, Costco is following its own playbook with the hot dog, which it gets in staggering volumes from a plant it owns in Tracy, Calif., where it also produces ground beef. That’s part of how the company has held the line on the combo price since 1983, this summer’s much-lamented demise of the polish dog option notwithstanding.
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