Food for Thought - Falcons drop concession prices, increase revenues

In a league struggling with attendence, perhaps this strategy should be considered;

Lower Concession prices and sell more, Happy fans will come to the Stadium earlier and eat and drink at the Stadium instead of eating and drinking before.
Who woulda thunk that would work. :o

I can understand the increases in revenues from the lower prices, but until the ROI analysis is completed on the financial increase/returns - AFTER expenses and AFTER all new infrastructure and extra staff costs are factored in, this doesn’t really indicate if it’s a success. All we learn here in this example is:

  1. More points of sale lead to more revenue
  2. Lower prices seem to help too, but not yet calculated as a whole vs COGs

The new costs to achieve these higher sales could actually make it LESS profitable annually.

There is certainly a point where the lines for income for increased sales and overall costs cross on the graph. Sometimes it’s not even a simple graph and there may be several intersection points based upon economies of scale.

Add to that the fact that the team doesn’t have total control over concessions, I believe, and the situation is extremely complicated.

Anecdotally I will tell you that I will NOT and HAVE NOT purchased items other than coffee at the concessions but that even a 30% drop would likely change my mind. I wonder how many like me there are out there. THAT’S the question.

I guess the the provider must be happy with their profit here in Hamilton as they have done very little to improve, quality, service and its at a very high price point.

There are still 2 years remaining on Levy's 5 year contract.

The food is crap.

After one full season now in New Mosaic Stadium, what we have experienced is an overall better value for food (more options, generally better quality, and good portions) while the booze value has declined, albeit we have many more choices of what to drink. We've always treated game day as a total outing so we eat a meal and have drinks at every game. We know a decent chunk of that supports the team so that's good enough for us (being a community owned franchise). The enhanced menu and many more points of sale make us look forward more to dining at games now. Easier to access, more choices etc.

Its not that simple... some things to consider.

More demand doesn't always = more sales.

  • More demand means more product needed (potential for more waste), cost to move and stock that inventory.
  • More employees needed (they have enough trouble filling the concessions with employees as it is)
  • Longer lineups andbigger crowds to manage
  • More issues, complaints, things that can slow down lines

Its a balance - I recall a few years ago Sony decided they would be ok to sell LESS Televisions because the cost/revenues were the same to sell more at a lower price.

We don't know the financials so of course its no more than "Food for thought" but im willing to bet people that make much more than me have crunched the numbers.

Try real food instead of the crap they pretend to be food. I eat before the game somewhere else. Not sure shy Denningers is not involved with the food choices? Why not A & W instead what we have now.

Sounds like the food menu sure didn't improve along with the new stadium in Tiger Town. Paying stadium prices (or more) for something substandard is unacceptable in this day and age.

some of the temporary stands are great. The pulled pork sammich place by the lounge seats in the endzone is awesome.

The old phili cheese steak that was above 117 and 118 was fantastic, (the taco place that replaced it is sub-par)

as far as the actual concessions go? not bad but over-priced.

a 30% decrease could easily double output. Unfortunately that'll up labour costs that have already been upped enough on their own this year.

You're lucky. My experience at the concessions has been the worst of any stadium I've been to. Just awful, terrible food. And clueless staff serving it.

You're right though, the temporary stands are actually pretty good, with the pulled pork being a real stand out item.

As a STH I would dwfinitely be more inclined to purchase at stadium than fill up pre-game, if prices dropped. I just cant justify the high prices goven that I can get plenty at fraction of coat. So yeah this could work and be financially viable at the Hammer.

Concessions thread and not one corn on the cob reference.

I really think they should bring in corn on the cob as a concession item. I mean, who doesn't love corn on the cob slathered in butter,mmmmmmmm. The farms around Jarvis produce some great tasting corn and they could always bring in the newest Jarvis Corn Queen to sit in the back of an open convertible while waving at the crowd during half-time or something. Please Ticats, wake up and stop sitting on your hands!!!!!

No rocket science here…in today’s markets smart dealers make the most money on “volume”…especially with the wage increases it just makes sense to work your people a little harder by selling more and even making the customers happy…even my golf club moved from selling regular cans for $6 to selling tall-boys for the same price…they set record sales…just common sense!

I was just about to mention it...

I would be afraid that a "few" idiots would decide to throw the eaten cobs out on the field....there is always a few...but it's a great idea!

There is not enough facepalm for that comment... lol