Costco Is Kicking Non-Members Out of the Food Court. Should You Join for the Hot Dog?

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Costco is cracking down on non-members visiting the food court. Is it worth joining just to keep enjoying the $1.50 hot dog deal? [[{“value”:”

Most people know you typically need a Costco membership to enjoy deals at the warehouse club. But until recently, that rule actually didn’t always apply to some of the very best bargains available.

See, while Costco’s food court was intended for members, the rule wasn’t really enforced. As a result, many non-members were able to enjoy its low prices for yummy treats — including a $1.50 hot dog and soda combo.

That changed last month, with Costco posting signs in some locations warning that, “Effective April 8, 2024, an active Costco membership card will be required to purchase items from our food court. You can join today. Please see our membership counter for details.”

If you’re been enjoying the delights of Costco’s food court with no membership card, that means the party is over. But now for the big question: Should you join for the hot dog?

Is Costco’s hot dog deal worth becoming a member for?

Costco’s famous hot dog deal allows you to pay $1.50 for a quarter-pound hot dog and a refillable 20-ounce soda. The price hasn’t changed since 1984, and the deal is so popular that Costco actually sells around 100 million hot dogs annually — all at a loss.

That’s a pretty unbeatable price for what amounts to a full dinner. However, with Costco cracking down and limiting access to members only, you’d now have to pay the warehouse club’s membership fee to be eligible.

While Costco has two membership tiers, you’re looking at a minimum of $60 coming out of your bank account yearly for the entry-level Gold Star membership. And that’s a good amount of money to pay just to access the food court.

If you’re dining out enough there, though, it may actually be worth the price — even if you don’t actually get anything else at the warehouse club. To see why, just compare it to the cost of some other dogs from other chains offering a similar meal. While there may be some regional price variation, here’s a sampling of what you might pay for a hot dog and soda elsewhere:

Five Guys: $7.49 for an all-beef hotdog plus $3.09 for a 24-ounce drink for a total of $10.58Sonic: $3.09 for an All-American hotdog plus $1.14 for a medium Coca-Cola for a total of $4.23Shake Shack: $4.49 for a 100% beef hotdog plus $3.79 for a large drink for a total of $8.28

Hotdog savings add up

So, at the low end of the scale, you’re looking at saving at least $2.73 on your meal each time you get a hotdog at Costco versus somewhere else. At the high end, you’re saving $9.08 every time.

This means, if you buy between seven and 21 hot dogs over the course of a year, this purchase alone could justify the Costco membership price. It’s really not that hard to imagine eating that many — especially if you tend to visit on a pretty regular basis with a partner or friend.

If you’re upset about Costco’s crackdown, it may just be time to pony up and buy that membership after all. You can keep enjoying your dinner there and may even decide you want to take advantage of some of the other perks the warehouse offers.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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