Costco's Secret Weapon: Food Courts & $1.50 Hot Dogs

New York $1.50. That's been the price of Costco's signature hot-dog-and-soda combo for more than three decades.

It sells at 750 no-frills food courts that look like throwbacks to the 1980s, with picnic tables, umbrellas and giant menu boards over the pickup windows.

And it's a hit. Costco sold 135 million combos last year.

The humble $1.50 hot dog is a secret weapon for the big-box warehouse club. It's one of the perks that helps persuade shoppers to dish out $60 or $120 for a membership every year.

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