Why has Costco's hot dog and soda combo remained priced at $1.50 since 1985, despite decades of inflation?

The food court at Costco has become an iconic part of the warehouse shopping experience, known for its affordable prices and signature menu items. While many shoppers make a beeline for the famous $1.50 hot dog and soda combo after checkout, there's an interesting business strategy behind this beloved offering. Test your knowledge about one of retail's most famous food-related pricing strategies!

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It's a loss leader deliberately kept at the same price to drive warehouse membership renewals and store traffic
Costco signed a 50-year fixed price contract with their meat supplier in the 1980s, locking in costs until 2035
The hot dog combo is subsidized by a special fund created from the company's alcohol sales profits
Costco's founding charter included a clause that this specific item must never increase in price as a promise to customers