Costco hot dog delivery costs $18 in California

# California Startup Delivers Costco Food Court Favorites at a Premium, Charging $18 for $1.50 Hot Dog Combo

A Southern California startup is attracting attention with a delivery service that brings popular Costco food court meals directly to customers, but convenience comes at a significantly higher price. The company, known as No Tip, charges customers $18 for Costco’s famous hot dog and soda combination, which normally costs just $1.50 at the warehouse retailer. The service is designed for people who want access to Costco food court favorites without visiting a warehouse themselves, particularly offices, parties and larger gatherings.

No Tip operates independently and has no official affiliation with Costco. Its business model involves sending shoppers to Costco warehouses to purchase food court items before delivering them to customers who place orders through its platform. The menu includes popular options such as hot dogs, pepperoni pizzas, chicken tenders, cookies and salads. Although individual orders are accepted, the company primarily focuses on catering requirements for corporate offices, family celebrations and other group events.

According to reports by KTLA and SFGATE, the service operates across Southern California and has established 66 fulfillment locations. Founder Jack Chen told SFGATE that the company can accommodate orders for as many as 200 people. The business aims to make it easier for customers to arrange large food orders without spending time traveling to a Costco warehouse, waiting for food and organizing transportation back to their workplace or event location.

The biggest talking point surrounding the startup is its pricing. Costco's $1.50 hot dog and soda combination has remained one of the retailer's most recognizable low-cost offerings for decades. Through No Tip, the same combination costs $18, representing an increase of 1,100% compared with the original in-store price. The company advertises its prices as all-inclusive, meaning customers do not have to pay separate delivery fees or provide additional tips. It also promises refunds for orders that arrive late.

The higher price reflects the additional work involved in purchasing and transporting food from Costco directly to customers. Instead of simply ordering from a restaurant with an established delivery system, buyers are paying for someone to travel to a warehouse, purchase the requested items and bring them to their location. The service therefore positions itself around convenience rather than offering Costco food at the retailer's original prices.

Chen, a software engineer who founded the company, said the idea developed from his own difficulty getting Costco pizza delivered. He recognized that other customers might also want the retailer's food court offerings without making a warehouse visit. That experience led him to develop a platform focused on bringing Costco meals to customers who value convenience, especially businesses arranging meals for employees and organizations hosting events.

The founder has indicated that corporate customers form an important part of the business. Offices may be more willing to pay higher prices when the service saves employees from leaving work to collect food. No Tip also supplies plates and utensils with deliveries, making it easier for companies and event organizers to distribute meals to larger groups. The platform's ability to handle orders for up to 200 people gives it a catering-focused approach rather than functioning solely as an individual food delivery service.

The startup also provides access to Costco food court products for customers who do not personally hold a Costco membership. Under its arrangement, the people purchasing the food at the warehouse are Costco members, allowing customers to place orders through No Tip without having their own membership. However, this does not make the company an authorized Costco delivery partner, and its operations remain separate from the retailer.

Costco has traditionally built its food court reputation around affordable meals and familiar products that encourage customers to visit its warehouses. Its $1.50 hot dog and soda combination has become a symbol of the retailer's commitment to maintaining low prices. Although Costco offers delivery options for groceries and other merchandise through third-party platforms, its food court menu is not generally available through those standard delivery services.

Chen has presented No Tip as a business that could generate additional activity for Costco food courts by bringing more buyers to its locations. The startup's approach also highlights a growing opportunity in the convenience economy, where customers are prepared to pay more for access to products that are difficult to obtain through traditional delivery channels.

The company launched shortly before the November 2026 reports and currently relies on Chen, friends and paid drivers to fulfill orders. It plans to expand its operations as demand develops. Its future growth will depend on whether customers, particularly corporate clients and event organizers, consider the convenience worth the substantial price difference. While the $18 hot dog combo may appear expensive to individual buyers, No Tip is betting that businesses and larger groups will value the time saved more than the original menu price.

The startup's business model demonstrates how delivery companies can create specialized services around established retailers without being directly connected to them. Whether No Tip can expand beyond Southern California remains to be seen, but its unusual pricing strategy has brought renewed attention to the enduring popularity of Costco's food court and the growing market for convenience-based services.