iStock // Tim Boyle, Getty Images
iStock // Tim Boyle, Getty Images

The Enduring Enigma of Costco's $1.50 Hot Dog and Soda Combo

iStock // Tim Boyle, Getty Images
iStock // Tim Boyle, Getty Images

When Costco president W. Craig Jelinek once complained to Costco co-founder and former CEO Jim Sinegal that their monolithic warehouse business was losing money on their famously cheap $1.50 hot dog and soda package, Sinegal listened, nodded, and then did his best to make his take on the situation perfectly clear.

"If you raise [the price of] the effing hot dog, I will kill you," Sinegal said. "Figure it out."

Taking his words to heart, Jelinek—who became Sinegal's successor in 2012—has never raised the price on Costco's hot dog. Incredibly, it has sold for the same $1.50 since the retail club first introduced the dogs to customers in 1984. The quarter-pound, all-beef tube and 20-ounce soda combo appears to be inflation-proof and immune to the whims of food distributors. How does Costco do it?

Simple. When it comes to hot dogs, Costco doesn't price according to what the market will bear. They price according to their own cost and according to the value the hot dogs can afford them.

According to Jelinek, people would pay $1.75, and maybe more, for the deal. But is that extra 25 cents going to be more valuable than the goodwill and foot traffic generated by a combo that's stuck to its price point for nearly 35 years? Probably not. Customers coming in to shop at Costco are amused, satisfied, and fueled by the hot dog meal. If they get it just before leaving the store, they're left with a lasting impression of being treated well. That's worth more than keeping up with inflation.

That means Costco needs to maintain the food court staple with an eye on a steady price. When supply costs threatened to increase in 2009, the company made a major decision: They stopped using Hebrew National, makers of the all-kosher dog that they had used since 1984, and decided to move hot dog production in-house. A Kirkland's Signature hot dog plant was constructed in Los Angeles. When they needed to ramp up production, they built a second plant in Chicago.

They've also had to keep costs on the soft drink side in line. When their deal with Coca-Cola was set to increase the price, Costco opted to sign with Pepsi in 2013, ensuring that their trademark $1.50 price sticker would be kept intact.

Today, Costco sells over 100 million hot dogs annually, which is more than every MLB stadium combined. And they continue to prove surprisingly adept at anything that could add even a single cent to the deal. When California recently enacted a soft drink tax that would have raised the consumer's cost, Costco locations in the state switched the combo to include Diet Pepsi. (Diet drinks are exempt from the law.) The company's "effing hot dog" will continue to remain a steal for the foreseeable future.

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This Just In
The Honey Smacks In Your Pantry May Be Contaminated With Salmonella
Doc_Brown, Flickr // CC BY-NC-ND 2.0. Cropped.
Doc_Brown, Flickr // CC BY-NC-ND 2.0. Cropped.

Salmonella, a bacterial food-borne illness often associated with raw eggs and undercooked chicken, has been linked recently to a popular children's cereal. According to Snopes, the Centers for Disease Control and Prevention (CDC) is urging consumers to avoid Kellogg’s Honey Smacks, citing the brand as the likely cause of the Salmonella outbreak spreading across the U.S.

Since early March, 73 people in 31 states have contracted the virus. Salmonella clears up in most people on its own, but in some cases it can lead to hospitalization or even death. Twenty-four victims have been admitted to hospitals so far, with no reported deaths. Of the 39 patients who were questioned, 30 of them remembered eating cold cereal and 14 of them specifically cited Honey Smacks.

In response to the outbreak, the Kellogg Company has recalled its 15.3-ounce and 23-ounce boxes of Honey Smacks printed with any "best if used by" date between June 14, 2018 and June 14, 2019 (recalled boxes are labeled on the bottom with the UPC codes 3800039103 or 3800014810). The CDC recommends that you take even greater precautions by throwing out or returning any Honey Smacks you have at home, regardless of package size, "best by" date, or whether your family has eaten from the box previously without getting sick.

Symptoms of Salmonella include diarrhea, fever, headache, and abdominal pain, and usually appear 12 hours to three days after the contaminated food is ingested. If you or someone in your household is showing signs of the infection, ask a doctor about how to best treat it.

[h/t Snopes]

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Big Questions
Why Does Asparagus Make Your Pee Smell Funny?
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The asparagus has a long and storied history. It was mentioned in the myths and the scholarly writings of ancient Greece, and its cultivation was the subject of a detailed lesson in Cato the Elder's treatise, On Agriculture. But it wasn't until the turn of the 18th century that discussion of the link between asparagus and odorous urine emerged. In 1731, John Arbuthnot, physician to Queen Anne, noted in a book about food that asparagus "affects the urine with a foetid smell ... and therefore have been suspected by some physicians as not friendly to the kidneys." Benjamin Franklin also noticed that eating asparagus "shall give our urine a disagreeable odor."

Since then, there has been debate over what is responsible for the stinky pee phenomenon. Polish chemist and doctor Marceli Nencki identified a compound called methanethiol as the cause in 1891, after a study that involved four men eating about three and a half pounds of asparagus apiece. In 1975, Robert H. White, a chemist at the University of California at San Diego, used gas chromatography to pin down several compounds known as S-methyl thioesters as the culprits. Other researchers have blamed various "sulfur-containing compounds" and, simply, "metabolites."

More recently, a study demonstrated that asparagusic acid taken orally by subjects known to produce stinky asparagus pee produced odorous urine, which contained the same volatile compounds found in their asparagus-induced odorous urine. Other subjects, who normally didn't experience asparagus-induced odorous urine, likewise were spared stinky pee after taking asparagusic acid.

The researchers concluded that asparagusic acid and its derivatives are the precursors of urinary odor (compared, in different scientific papers, to the smell of "rotten cabbage," "boiling cabbage" and "vegetable soup"). The various compounds that contribute to the distinct smell—and were sometimes blamed as the sole cause in the past—are metabolized from asparagusic acid.

Exactly how these compounds are produced as we digest asparagus remains unclear, so let's turn to an equally compelling, but more answerable question:

WHY DOESN'T ASPARAGUS MAKE YOUR PEE SMELL FUNNY?

Remember when I said that some people don't produce stinky asparagus pee? Several studies have shown that only some of us experience stinky pee (ranging from 20 to 40 percent of the subjects taking part in the study, depending on which paper you read), while the majority have never had the pleasure.

For a while, the world was divided into those whose pee stank after eating asparagus and those whose didn't. Then in 1980, a study complicated matters: Subjects whose pee stank sniffed the urine of subjects whose pee didn't. Guess what? The pee stank. It turns out we're not only divided by the ability to produce odorous asparagus pee, but the ability to smell it.

An anosmia—an inability to perceive a smell—keeps certain people from smelling the compounds that make up even the most offensive asparagus pee, and like the stinky pee non-producers, they're in the majority.

Producing and perceiving asparagus pee don't go hand-in-hand, either. The 1980 study found that some people who don't produce stinky pee could detect the rotten cabbage smell in another person's urine. On the flip side, some stink producers aren't able to pick up the scent in their own urine or the urine of others.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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