That Most Overpriced of Foods: The Hot Dog

Posted on | June 30, 2010 | 11 Comments

With July 4th quickly approaching, I thought it would be fun to write an article about a food pivotal to any picnic, party, or barbecue: the hot dog. It’s a simple, great-tasting finger food enjoyed by kids and adults alike, and relatively cheap. What could be more American than the hot dog? I know: taking something that is extremely cheap to produce and price gouging other Americans for it.

                I love a good hot dog. There’s something about having one at a baseball game or movie theater that elevates the entire experience. Nothing beats the smell from a row of slowly roasting hot dogs, the heat from the roaster tenderizing and suffusing the food with its own juices. But the ring-up at the cash register always slashes my moment in half and I find myself looking at the clerk with a horrified expression that says Can you really charge me that much? It’s as if they expect sales from hot dogs to absorb the cost of rent, utilities, and parking space after the bills come due for failed movies and decreasingly popular baseball games—their profits on encased meat must be huge. After all, each venue starts with the same cheap-to-make product, and then adds their own “touch”. What I was surprised to find was that the places that charge the most for their product have no “touch” at all—they literally hand you a hot dog in a bun, maybe cheese (considered an “extra” for which you pay more), and then you have to put your own condiments on!

                Let’s take a closer look to see what I am talking about. By the way, I had to eat a lot of hot dogs to write this article, and because of this, I will be opting for a cheeseburger this July 4th.

Hot Dogs from the Grocery Store

Let’s start with the actual cost of a hot dog with no bun, no extras, and no service. Paul and I purchase Ball Park Franks when we eat hot dogs at home. The normal price for these hot dogs is about $4.00 for a package of 8, or $0.50 each. Of course, we wait until they go on sale for 2/$5, and then use two $0.75-off coupons to get our hot dogs for $0.22 each.

For the purposes of this article, we will base the cost of producing a hot dog on the $0.50 price, and calculate the approximate markup based on this cost. Retailers and food joints purchase their supply in bulk (most likely much less than $0.50 each), and so choosing this higher price for the purpose of showing the huge mark-up on this product will also reflect the retailer’s cost of the hot dog bun and any add-ons (onions, ketchup, mustard, foil, friendly service, etc.).  

 

 

 

 

 

 

Hot Dog from James Coney Island

James Coney Island is a hot dog chain (fast food) in Texas, and offers a Cheese Dog for $1.79. Not bad for a quick run after work, though I must admit, I was not very impressed with the flavor, and there was not much meat in there (if you look at the photo below, it’s all cheese and bun). Approximate markup: 259% or $1.29.

 

  

  

  

 

 

Hot Dog from Harry’s 

Harry’s is a famous hot dog place right near my hometown in PA, and so every time I go home I snag a hot dog with cheese, ketchup, onions, and extra sauce. The price is very reasonable at $2.19. What’s in the sauce? No one knows for sure, except the owner, who travels to Greece (his home country) to procure nearly 20 spices for it. Mmmmmm. Approximate markup: 339% or $1.69.

 

 

 

 

 

 

Hot Dog from Five Guys in Houston

Next to Harry’s hot dogs, this was my favorite! The hot dog was considerably longer than the others I’ve eaten, and substantial enough to fill me up. A bacon dog with ketchup was $3.69. Approximate markup: 640% or $3.19.

 

 

 

 

 

 

Hot Dog from Edward’s Regal Cinema Movie Theater

Here is where the price of a hot dog starts to get ridiculous. I paid $4.00 for what you see below, and even had to add my own condiments! There was no special touch, like a sauce, sautéed onions, etc. Approximate markup: 700% or $3.50.

 

 

 

Hot Dog from Minute Maid Stadium

Not only was this hot dog completely unimpressive (for the price), but the bun was the worst out of all of them! I paid $4.75 for this one. But hey, it came with a great view and some pretty Astros paper (or rather I paid for that view as well to get into the stadium). Approximate markup: 850% or $4.25.

 

If businesses are looking to attract new customers, advertise special promotions, or universities try to attract students to open houses and other events, the food of choice to give away for free is usually the hot dog. This is simply because it is such a cheap food. Yet some of these companies above are making a fortune off of this product! I guess I could choose to not purchase one the next time I go to the movies or to a sports event…but then it just wouldn’t be the same.

                I hope you all enjoy your July 4th, and if you’re at a picnic or hosting one, be sure to enjoy a cheap treat—the hot dog.

Small Signature

Comments

11 Responses to “That Most Overpriced of Foods: The Hot Dog”

  1. Little House
    June 30th, 2010 @ 11:25 am

    I completely agree with your point here. On top of hot dogs costing way too much at a fast-food or concession stand, they usually aren’t even 100% beef. If you look closely at the ingredients of the less expensive hot dogs in the market, they are mechanically separated. What does that mean? I’m not sure I want to know.

    So, I purchase the slightly more expensive Hebrew Nationals at the store, 100% beef and kosher. Which I think means no mechanically separated weird parts. I now stay away from hot dogs at concession stands unless they serve Hebrew Nationals!
    Little House recently posted..Tuesday Tips- Week 16

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  2. Amanda L. Grossman
    June 30th, 2010 @ 12:21 pm

    Hello Little House!

    Sounds very reasonable; we always spend extra on the Ball Park beef franks…but I should probably even look closer at that lable.

    Thanks for your comment!
    Amanda L. Grossman recently posted..That Most Overpriced of Foods- The Hot Dog

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  3. Penniless Parenting
    June 30th, 2010 @ 12:39 pm

    It really is amazing how much these places mark things up- like 2 dollars for a can of soda that cost 50 cents or less in the store (I’m out of the US for the past few years, so my prices are probably out of date).

    I try to bring things along instead of buying them while out, especially because of things like this. I wrote about it on my blog, you might find it interesting.
    I’m here from WFMW.

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  4. FruGal
    June 30th, 2010 @ 12:50 pm

    Hello Penniless Parenting! Thanks for the comment. I usually bring a mint musketeer in my purse to snack on…mmmmm I love those things.

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  5. BluSky
    June 30th, 2010 @ 2:40 pm

    Damn. Now you have me craving a lucky dog from one of the street vendors in the French Quarter.

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  6. Amanda L. Grossman
    June 30th, 2010 @ 3:12 pm

    BluSky: Heheehehe–where is the French Quarter, Louisiana?
    Amanda L. Grossman recently posted..That Most Overpriced of Foods- The Hot Dog

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  7. Thankfully Thrifty
    June 30th, 2010 @ 6:23 pm

    Something other than a hot dog this 4th of July it is!
    Btw JCI is only in Houston. :( It makes me sad because I’m from Houston but currently in Dallas. No JCI. :( Unlike you, I LOVE it! Haha.
    And is Harry’s the same as Wild About Harry’s? We have one of those. Known for their hot dogs and frozen custard. Yum.
    Mmmm can you tell I was like drooling over the pics? Not the prices.
    Thankfully Thrifty recently posted..Group Coupon Sites

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  8. BluSky
    June 30th, 2010 @ 9:30 pm

    Si. It’s in New Orleans. You poor, poor Pennsylvania girl. You need to see the French Quarter. And you need a Lucky Dog! Take your husband by the hand and go there. The place is steeped in history and plus they have awesome food. Drop by Emerils or Nolas if you get a chance. The hotel I stayed at most often was the Royal Sonesta but there are many other options available.

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  9. Amanda L. Grossman
    July 1st, 2010 @ 8:15 am

    BluSky: Will do. Thanks for pointing me in the right direction!
    Amanda L. Grossman recently posted..That Most Overpriced of Foods- The Hot Dog

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  10. Budgeting in the Fun Stuff
    July 9th, 2010 @ 3:00 pm

    Amanda, if you go to New Orleans, after you grab a Lucky Dog, you have to get beignets from Cafe Du Monde. They are pure heaven. I’ve only had them once and have been craving them ever since. They are a fried pastry with powdered cheese, but you have to taste them to understand…

    As far as hotdogs go, I actually prefer the taste of Ballparks over Hebrew Nationals…I grew up on the preservatives I guess. :-)

    I never buy a hotdog at Minute Maid or movie theaters since the price makes me gag…I understand where you are coming from though….

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  11. Amanda L. Grossman
    July 9th, 2010 @ 3:57 pm

    Thanks for the comments! Sounds like another great place to try when I get to New Orleans.
    Amanda L. Grossman recently posted..Frugal Confessions Friday

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