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The journey that led Costco to its humble hot dog roots began with its founders, Jim Sagal and Jeff Brotman, both of whom were inspired by the warehouse club model. The first warehouse club was Price Club, founded by Saul Price in 1976, aimed at small business owners. Later, Sagal and Brotman initiated Costco in 1983, modeling it after Price Club. Amid competition from other chains like Sam's Club and BJ's Wholesale Club, Costco established itself in the marketplace.
In an interesting twist, Costco and Price Club merged in 1993 to form PriceCostco, which allowed them to combine resources and expand their competitive edge.