Costco’s big beverage swap: Coke is returning to store food courts

After weeks of speculation, Costco confirmed Thursday the wholesale chain’s food courts will look a lot different soon as it will begin offering Coca-Cola or Coke products in its soda fountains this summer.

Costco President and CEO Ron Vachris briefly confirmed the major change during the Q&A portion of the company’s annual shareholder’s meeting Thursday. (The question was answered at the 44:24 mark of the presentation.)

“Is the food court truly switching back to Coke products?” one person asked.

“Yes, that is accurate,” Vachris said in response. “This summer, we will be converting our food court fountain business back over to Coca-Cola.”

That means Coca-Cola Classic, Diet Coke and Sprite will soon be available at the fountains instead of Pepsi, Diet Pepsi and Starry.

The confirmation comes after Costco Insider, which often publishes online articles about deals and coupons before Costco does and bills itself as “the No. 1 website on the internet about Costco,” reported last month the change was coming. In its coverage, Cheapism also cited an anonymous user on Costco’s Reddit forum in December alerting people to the change.

CNN reported the deal not only includes the machines and syrup in the sodas, but cups, straws and other products as well.

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After serving Coke products for decades in its food courts, Costco switched to Pepsi in 2013, as multiple media outlets stated.

“It’s a big shift,” then-Costco Vice President of Food Services Alan Bubitz told beverage publication BevNET in 2013. “They’re the only vendor we’ve ever had for the majority of the business locations.”

Bubitz expected pushback to the change to Pepsi from Coke at the time. But he also told BevNET at that time the change from Coke to Pepsi was being made in an attempt to preserve the iconic deal where customers can get a 22-ounce cup of soda and a hot dog for $1.50.

“You’re not going to be able to please everybody,” Bubitz said to the specialty media outlet. “It’s our job to preserve the integrity of the price point.”

Customers wait in line to order below signage for the Costco Kirkland Signature $1.50 hot dog and soda combo. (Photo: Patrick T. Fallon, Getty Images)

So, will a hot dog and a Coke still cost $1.50 at Costco?

Costco most recently confirmed last May via Executive Vice President and CFO Gary Millerchip in an earnings call the price of the combo will remain the same.

“To clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe,” Millerchip said.

Costco is keeping the price of that combo the same despite inflation impacting the wholesale retailer’s cost to produce it.

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CNN reported last year that if Costco’s kept pace with inflation, the famous hot dog deal would be three times as expensive as it was in 1985 when the company first set the price — nearly $4.50.

Talking about the deal in 2009 with The Seattle Times, Costco founder and then-CEO Jim Sinegal was asked what it meant if the company increased the price of that deal.

“That I’m dead,” Sinegal responded.

When asked why it was so significant, Sinegal explained to the Times that even then — more than 15 years ago — people brought up how great the deal is.

“Because everybody talks about it,” Sinegal said. “People look at that hot dog and say a buck fifty, this is unbelievable. It’s the same thing you’d spend $7 or $8 at the ballpark for and not get the same quality dog. It’s one of the things that we’re known for.”

The Costco shareholders call Thursday where the change to Coke was announced didn’t reveal any more information about the price of the hot dog deal, but the company did reveal it sold a record 229 million hot dog combos in the 2024 fiscal year.

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.