Costco^® Food Court Drops Pepsi^®, Brings Back Coca-Cola^® After 11 Years

Costco^® is making a major change to its food court menu, bringing Coca-Cola^® back to its soda fountains and cutting ties with Pepsi^®. The warehouse retailer announced during its recent shareholder meeting, confirming rumors that had been circulating for weeks. The switch will take place this summer, marking the end of Pepsi's 11-year run as the exclusive soft drink provider for Costco's food courts. 

Why Did Costco Switch to Pepsi in the First Place?

For decades, Coca-Cola was the go-to soda at Costco's food courts. But in 2013, the company made the decision to switch to Pepsi. The reason? To maintain its famous $1.50 hot dog and soda combo. Keeping the deal at that price despite rising costs was a priority for Costco, and the company believed switching to Pepsi helped make that possible.

The $1.50 hot dog deal has become a symbol of Costco's commitment to value. It's such an important part of Costco's brand that co-founder Jim Sinegal reportedly once told executives, "If you raise the effing hot dog, I will kill you. Figure it out," according to CNN.

Why Is Costco Switching Back to Coke?

Costco hasn't provided specific details on why it's making the switch back to Coca-Cola, but it likely comes down to business negotiations. The company regularly solicits bids for its food court fountain drinks, which include sodas, cups, straws, and other related products. This time, Coca-Cola won the soda bid, bringing an end to Pepsi's decade-long run.

The move is expected to be a welcome change for many Costco shoppers who have missed pairing their food court favorites with a Coke. While Pepsi has its loyal fans, Coca-Cola remains the dominant brand in the soda market and was a longtime staple at Costco before the switch.

The $1.50 Hot Dog Deal Is Here to Stay

Despite ongoing inflation and rising food costs, Costco has reassured customers that the $1.50 hot dog and soda combo isn't going anywhere. "The $1.50 hot dog price is safe," Costco CFO Gary Millerchip said in 2024, according to USA Today, reinforcing the company's commitment to keeping the deal unchanged.

Whether customers prefer Coke or Pepsi, one thing remains the same: Costco's food court continues to be one of the best deals around.

References: Coke is returning to Costco's food courts. Pepsi is out | Costco confirms switch of food court sodas from Pepsi to Coca-Cola