Costco’s food courts, a go-to spot for grabbing a quick bite, are getting a major refresh in 2025. The warehouse giant has officially started swapping out Pepsi products for Coca-Cola beverages, a move that’s stirring up nostalgia and excitement for fans of the iconic $1.50 hot dog and soda combo. This change, which began rolling out in July, marks the end of a 12-year run with Pepsi and a return to Coca-Cola, a brand that once dominated Costco’s fountains for decades. By fall, every Costco food court across the globe will pour Coca-Cola drinks, bringing a familiar taste back to the beloved budget meal.
A Long-Awaited Return to Coca-Cola
The switch was first confirmed by Costco’s CEO, Ron Vachris, during the company’s annual shareholder meeting on January 23, 2025. Addressing speculation that had been swirling among members, Vachris announced that Costco’s food court fountains would transition back to Coca-Cola products starting in the summer. “We will be converting our food court fountain business back over to Coca-Cola,” he said, putting an end to months of rumors. The decision reverses a move made in 2013 when Costco ditched Coca-Cola for Pepsi to keep the hot dog and soda combo priced at $1.50, a deal that’s been a cornerstone of the retailer’s brand since the 1980s.
The transition kicked off on July 1, with Coca-Cola confirming that all 908 Costco warehouses worldwide, including 625 in the U.S., will complete the switch by fall 2025. Costco Canada has already jumped on board, proudly sharing on social media that “Coca-Cola has officially joined the drink lineup at Costco food courts across Canada.” For many, the return of Coca-Cola is a nostalgic win, harking back to the days when an ice-cold Coke was the default pairing for Costco’s famous hot dog.
Why the Switch Happened
Costco’s decision to bring back Coca-Cola isn’t just about taste—it’s a strategic move. Back in 2013, the retailer switched to Pepsi to maintain the $1.50 price point for its hot dog and soda combo, a deal so iconic that co-founder Jim Sinegal once famously warned, “If you raise the price of the effing hot dog, I will kill you.” The low price, unchanged since the 1980s, is a loss leader for Costco, drawing customers into the warehouse where they’re likely to spend more on other items. At the time, Pepsi offered a better deal to keep costs down, but after over a decade, Coca-Cola has reclaimed its spot.
The exact reasons for the 2025 switch remain under wraps, as neither Costco nor Coca-Cola responded to requests for comment. However, industry insiders point to Coca-Cola’s market dominance and customer preferences as likely drivers. Some reports suggest that Costco and Coca-Cola renegotiated terms, possibly involving better pricing or equipment support, to make the switch feasible without hiking the combo’s price. Whatever the details, the move has sparked buzz among shoppers, with many eager to sip on Coca-Cola, Diet Coke, Coke Zero, or Sprite with their next food court meal.
A Global Rollout for a Fan-Favorite Deal
The transition to Coca-Cola is happening across all Costco food courts in 14 countries, ensuring that members worldwide can enjoy the same fizzy refreshment. In the U.S., where Costco operates 625 warehouses, the rollout is already underway, with some locations showcasing new Coca-Cola branding on their fountain machines. The change is expected to be complete by fall, meaning every hot dog combo will soon come with a Coca-Cola option, from classic Coke to Sprite and beyond.
Costco’s commitment to keeping the $1.50 hot dog and soda combo intact is a big part of this story. Despite inflation pressures, the retailer has repeatedly reassured customers that the price is “safe.” In May 2024, Costco’s CFO, Gary Millerchip, emphasized during an earnings call that the company has no plans to raise the price, honoring its long-standing tradition of value. This dedication to affordability makes the Coca-Cola switch even more significant, as it shows Costco’s ability to refresh its offerings while sticking to its budget-friendly roots.
Mixed Reactions from Shoppers
The return of Coca-Cola has sparked a mix of cheers and groans among Costco members. For some, it’s a triumphant return to the way things were before 2013, when Coca-Cola was the go-to drink. Others, however, have grown fond of Pepsi over the past decade and aren’t thrilled about the change. Social media posts reflect the divide, with some shoppers celebrating the return of their favorite soda and others lamenting the loss of Pepsi’s distinct flavor. Despite the mixed feelings, the $1.50 combo remains a draw, with Costco selling around 150 million hot dog and soda meals annually, a testament to its enduring popularity.
Costco’s Bigger Picture: Growth and Value
The beverage switch comes at a time when Costco is expanding its footprint and fine-tuning its customer experience. The retailer is set to open seven new warehouses in August 2025, including four in the U.S., following recent openings in South Korea, Sweden, and Midland, Texas. With 908 locations worldwide, Costco continues to grow while staying true to its value-driven model. The food court, with its affordable eats and now Coca-Cola drinks, remains a key part of that appeal, drawing members in for a quick meal after shopping.
For many, the food court is more than just a place to grab a cheap lunch—it’s a ritual. Whether it’s the hot dog and soda combo, a slice of pizza, or a frozen yogurt, Costco’s food courts are a nostalgic part of the shopping experience. The return of Coca-Cola only adds to that sense of familiarity, reminding longtime members of the warehouse’s early days while keeping the price point unbeatable.
What’s Next for Costco’s Food Court?
As Coca-Cola fountains take over, some shoppers are wondering if more changes are on the horizon. While Costco hasn’t announced any immediate plans to tweak the food court menu further, the company has shown a willingness to evolve. Recent moves, like requiring memberships for food court access at some locations, suggest Costco is experimenting with ways to streamline operations and boost member value. For now, though, the focus is on the Coca-Cola rollout, a change that’s sure to spark conversations among shoppers grabbing their next $1.50 combo.
In the end, Costco’s switch from Pepsi to Coca-Cola is more than just a beverage change—it’s a nod to tradition, a commitment to value, and a reminder of why millions flock to the warehouse club. Whether you’re a Coke fan or a Pepsi loyalist, one thing’s for sure: that $1.50 hot dog and soda deal will keep bringing people back, now with a classic Coca-Cola twist.
