Costco Brings Coca-Cola Back to Food Courts, Ending Decade-Long Pepsi Era

Costco is making a significant change at its food courts, bringing back Coca-Cola as its fountain soda provider and ending its decade-long partnership with Pepsi. The switch is set to take place this summer, as confirmed by Costco CEO Ron Vachris during the company’s annual shareholders meeting.

“We will be converting our food court fountain business back over to Coca-Cola,” Vachris announced, addressing speculation that had been circulating about the move.

Costco first replaced Coca-Cola with Pepsi in 2013 after soliciting bids for its fountain drink operations, which include soda machines, syrups, cups, and other supplies. At the time, the change was made to maintain the affordability of its iconic $1.50 hot dog-and-soda combo, a price point that has remained unchanged since 1985 despite rising costs.

The Legacy of Costco’s $1.50 Hot Dog Combo

Costco’s $1.50 hot dog-and-soda deal is a hallmark of the warehouse giant’s brand and marketing strategy. Last year, Costco sold approximately 150 million of the combos, using the low price as a loss leader to attract customers while balancing profits through higher prices on other items.

Former Costco co-founder Jim Sinegal once famously defended the combo’s price, reportedly telling executives, “If you raise the effing hot dog, I will kill you. Figure it out.”

Despite inflation and rising costs, Costco’s chief financial officer reassured customers last year that the $1.50 combo price would remain “safe.”

A Shift Back to Coca-Cola

Coca-Cola had been a staple in Costco food courts for decades before the 2013 switch to Pepsi. The return to Coca-Cola is expected to please fans who have long associated the brand with Costco’s dining experience.

This change underscores the company’s commitment to maintaining its food court’s iconic offerings while responding to customer preferences. With Coca-Cola back in the mix, Costco aims to deliver a nostalgic boost to its food court experience.