>>714601553There is practically zero labor in preparing one. The dogs are already cooked, so they just toss it in a bun, wrap it, and hand it over.
Drinks cost maybe $0.01. Drinks are how a lot of restaurants make a lot of money. It's just a machine that mixes a bag of syrup. One bag of syrup gets you probably 1000 drinks. Low maintenance machine. You just unscrew the caps off the streams and toss them in liquid overnight so they don't get sticky.
That kitchen brings people IN to Costco, a lot. It's a great business model, because even at 1.50, they probably still make money on those dogs. Have you seen how they make the pizzas?
Moving volume is a legitimate business model. Some of the only successful game stores today run off this model. It's not worth haggling over a stupid pokemon card. The smart ones just sell it, instead of fighting over $3.
Think about how easy it is to make hot dogs, the next time you order one anywhere else. If they aren't sucking your dick, it's probably not worth the $12.50 or whatever they are charging you at the ballpark. (baseball sucks btw).