4 Strategies for Increasing Revenue from Football Concessions
Football stadium concessions play a pivotal role in the overall fan experience. The hefty cost to build and maintain stadiums requires that multiple revenue streams exist to maximize profits. Concession stands contribute significantly to the revenue stream of teams and venues. Considering outside food is typically forbidden, you’re almost forced to spend when the average duration of any sporting event clocks in over two hours. Let’s discuss strategies for increasing revenue from football concessions.
Strategies for Increasing Revenue from Football Concessions
1. Diversify the Options
One of the most effective ways to boost concession revenue is by offering a diverse range of food and beverage options. Gone are the days of limited choices; modern fans expect variety and quality. Conduct market research to understand the local and cultural preferences of your fan base. Integrating popular local dishes alongside traditional favorites can attract a broader audience.
Case Study: Levi’s Stadium (Home of the San Francisco 49ers) & Sodexo @ Lucas Oil Stadium
Levi’s Stadium is renowned for its diverse concession offerings, including gourmet options like sushi and specialty cocktails. This strategy has resonated with fans, resulting in increased per capita spending.
Sodexo Live, the hospitality partners at Lucas Oil Stadium, chose to include local favorites to more diverse food menu options. The classic BBQ Brisket Sandwich is set to include John Tom’s BBQ sauce, a regional favorite.
2.Embrace Digital Integration
Paper fiat becomes more obsolete as the years go by. I can’t remember the last time I carried more than $50 bucks in cash. Digital and virtual transactions dominant the marketplace. Consider how convenient it would feel to wait less and get back to game quicker.
According to the Motley Fool, more and more stadiums are going cashless. Cash is no longer king. Reports show that spending increases by 15%-30% when utilizing cashless payment methods.
Case Study: Atlanta Falcons’ Mercedes-Benz Stadium
Mercedes-Benz Stadium rolled out the “Fan First Menu Pricing” initiative back in 2018. The concept was designed to providing affordable concession items. Coupled with their cutting-edge mobile app for seamless ordering and payment, the stadium witnessed a significant increase in concession revenue.
3.Understand Strategic Pricing
Pricing is a delicate balancing act. Strive to offer affordable options to accommodate a wide range of fans while maintaining a profit margin that sustains the business. Regularly assess pricing strategies based on fan feedback and economic factors.
Case Study:Lambeau Field (Home of the Green Bay Packers)
Lambeau Field has successfully implemented dynamic pricing, adjusting concession prices based on factors such as demand, opponent, and weather conditions. This adaptive approach has proven effective in maximizing revenue.
4.Consider Sustainabaility
Incorporating sustainability into concession operations not only aligns with current consumer trends but also attracts environmentally conscious fans. Implement eco-friendly packaging, source locally-produced items, and explore partnerships with sustainable brands.
Case Study: Seattle Seahawks’ CenturyLink Field
CenturyLink Field has adopted a comprehensive waste reduction program, incorporating compostable serviceware and partnering with local vendors for sustainable sourcing. This commitment to sustainability has resonated positively with fans.
Maximizing revenue from football stadium concessions requires a multifaceted approach that combines diverse offerings, technology integration, strategic pricing, and sustainability initiatives. By learning from successful implementations in the NFL business model, stadium operators can create a winning formula that enhances the fan experience while boosting the bottom line.
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