In a new interview with Bloomberg, Costco’s departing CFO Richard Galanti was asked about the fate of this deal in the context of his departure this month after a nearly 40-year tenure.
Galanti — who has fiercely defended its $1.50 price point and confidently stated in a 2022 earnings call that it would stay this way “forever” — appeared to offer a more cautious outlook on its future this week.
“It’s probably safe for a while,” he told Bloomberg on Tuesday.
The warehouse chain has offered this combo deal since 1985 — and while its menu has varied across its US stores, this item has remained a constant. As a result, it has become a cult symbol of the chain and a fan favorite.
Costco shoppers and workers have differing views on why it has held on to this, despite rising inflation over the years and putting up prices elsewhere.
These range from wanting to give the customer a positive experience on their way out of the store to being a tactic to lure shoppers into the food court to then buy other pricer items.
In 2009, David Fuller, assistant vice president of publishing at Costco, appeared to settle the debate by writing in the store’s magazine that its steady price was to show that the “business can operate on a fair markup and still pay all of its bills.”
“Holding a price that steady for that long sends a clear message about what is possible when you decide to operate your business model on a ‘cost plus’ basis instead of a ‘what the market will bear’ basis,” he wrote, Business Insider previously reported.
Costco did not immediately respond to BI’s request for comment.
