Costco's $1.50 hot dog combo is reportedly getting a major markup in a new delivery app... to nearly 20 bucks.
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Indeed, the deal, which plenty of Costco customers chow down on when they visit the store, is famously endorsed by the company's bigwigs, who claim the price isn't going up anytime soon.
That is, unless you're stuck at home (or the office) in Southern California and want a specific food delivery service to bring it to you.
According to SFGate, a new food delivery service sporting the cheeky moniker No Tip is offering SoCal residents the opportunity to grab Costco's food court offerings (including the $1.50 hot dog combo) from the comfort of their living room/office/Grandma's basement. Sure, other services offer to deliver Costco items, just not to delve into the wholesaler's food court.
However, No Tip ventures into Costco's food court... for a premium, with SFGate pointing out it's a 1,100% markup.
No Tip CEO Defends Selling Costco's $1.50 Hot Dog Combo For $18: "It Was Just Basic Math"
No Tip's CEO Jack Chen admitted to SFGate that his company offers Costco's hot dog combo at $18, but claims it's still a popular item.
"A lot of offices are ordering from me. It's the company's money. As long as you're not too expensive. I mean, they've got the money to blow," Chen told the outlet. "You'd be surprised how some people are just craving it specifically."
Slowing down and going over the details, it should be noted that No Tip is intended as something of a catering service. In other words, the company serves businesses looking to feed hungry employees in large numbers. However, they're happy to serve just individuals, too.
Chen claims he had the idea for No Tip when he was craving Costco's pizza one night at work. He realized it would be nearly impossible for him to make it from his office to the wholesaler's food court to grab a slice.
"I know my friends have paid, like, $30-plus dollars for some terrible Domino's in the past," he told SFGate. "So why not try to do this?"
This leads to prices like $30 for Costco's $9.95 pizza. But Chen backs up his scaled-up fees, claiming customers are paying for convenience and efficiency.
"It was just basic math ... I just increased the price to what their budget was."
Plus, as the company's name not so subtly suggests, no tip is required.
