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Delivery person on bike next to photo of a hot dog at the Costco food court
Costco has amassed a sizable legion of loyal customers who flock there to take advantage of the many bargains it offers. There’s arguably no better deal to be found at its stores than the $1.5o hot dog combo at the food court, but one delivery service in California is charging much, much more to customers who want one dropped off.
Costco opened its first warehouse in Seattle in September of 1983 and officially became a chain when it christened a second location in Portland, Oregon a month later. The following year, the manager of the Portland outpost let a vendor set up a hot dog cart that offered a glizzy and a soda for $1.50, a price that has remained unchanged more than 40 years later.
Jim Sinegal, who served as the CEO of Costco from its founding until 2011, once threatened to kill an executive who floated the idea of raising the price of the combo, and its current CFO has pledged to preserve the sanctity of the biggest value its food court has to offer for the foreseeable future.
You typically have to make the trek to a Costco store if you want to get your hands on a hot dog, but one company in California is charging a wild premium for people who want to get one delivered.
A startup in California is charging a 1100% markup to deliver a hot dog from the Costco food court
Costco has officially partnered with Instacart to handle same-day deliveries, but you can also order items through other major platforms like DoorDash and Uber Eats.
However, those services do not typically allow you to order items from the food court, and according to SFGate, a delivery startup in California is doing what it can to fill in that gap. However, you’ll have to pay much more than you would if you made the trip yourself if you want to take advantage.
No Tip, the delivery service in question, is primarily focused on handling large orders like “business lunches and birthday parties or large family gatherings.” Users have the option to have Costco provide food for those functions, but if you want to get a hot dog and a soda, you’ll have to shell out $18 instead of the $1.50 it would usually set you back.
Other items feature a significant markup that’s still a bargain in comparison to the hot dog; a pepperoni pizza costs $30 instead of $9.95 (201% more), and a rotisserie chicken salad will run you $28 instead of $7.99 (250%).
Jack Chen, who runs the company that’s currently serving customers in Southern California, acknowledged the price structure might stun the average person but notes No Tips reaps the benefits of handing orders in an area filled with wealthy businesses that have more money than they know what to do with, saying many people won’t think twice when they’re paying with “the company’s money.”
Must be nice.