Falcons concessions success

[Aviano90]

I remember when the Falcons announced the prices of their concessions were going to be fan friendly at their new stadium. I'm happy to hear that it was a huge success for them and hope it spreads throughout the league and other sports.

http://www.espn.com/nfl/story/_/id/...-more-money-mercedes-benz-stadium-concessions

Cannon said Thursday that the Falcons recently finished No. 1 among all NFL teams, in an internal survey conducted by the league, in food quality, price to value ratio, speed of service and variety.

Not only did the team make more money by lowering the prices, but the move also led to a domino effect for the entire game-day experience.

 

[CPanther95]

No kidding. Hope it spreads.

Here's a comparison with AT&T Stadium:

Nachos
Falcons: $3 | Cowboys: $9
Peanuts
Falcons: $3 | Cowboys $5
Popcorn
Falcons: $2 | Cowboys: $10
Pretzels
Falcons: $2 | Cowboys: $6
Hot dogs
Falcons: $2 | Cowboys: $5.50
Souvenir soda
Falcons: $4 | Cowboys: $6

 

[Sarge]

Less is more.

 

[Bigdog]

I remember reading an article about the LA Angels owner doing this. He told his board members that he was lowering some food prices including beer. Many of the board members objected saying they would not turn a profit especially with beer. The owner simply said don't you think if the prices were lower they will probably buy more of, thus turning a profit. I believed they did.

 

[Master22]

I remember reading about this a while back and thought it was an awesome idea! I think it would be extremely wise for the rest of the NFL to follow their lead on this, especially the Cowboys. The pricing there is so outrageous in regards to everything not just concessions I may never end up going to a game.

 

[diefree666]

I remember reading about this a while back and thought it was an awesome idea! I think it would be extremely wise for the rest of the NFL to follow their lead on this, especially the Cowboys. The pricing there is so outrageous in regards to everything not just concessions I may never end up going to a game.

its like in airports where you are spending as much as three dollars or more for a bottle of water. Simply obscene

 

[JackOfNoTrades]

its like in airports where you are spending as much as three dollars or more for a bottle of water. Simply obscene

agreed and not sure why it isn't considered price gouging, which is illegal. Especially since you're not allowed to bring in your own food/drink into airports, stadiums, arenas, etc.

 

[Yakuza Rich]

Most places are getting about 80% profit margins off food. However, food yields are always a problem with spoilage, inaccurate planning, human error, etc. The problem for NFL owners is with ticket prices and parking so expensive and the affordability of awesome home theaters, it's hard to attract fans tot he stadium and to get them to spend money on food.






YR

 

[Walker]

Do not like the Falcon owner, but good to see them keeping the prices of the food reasonable. It cost a lot already to go to a game for those outside the area with traveling + hotel and its nice to see you dont have to break the bank to give your son a hot dog.

 

[Proximo]

The problem for NFL owners is with ticket prices and parking so expensive and the affordability of awesome home theaters, it's hard to attract fans tot he stadium and to get them to spend money on food.






YR

Agreed.

There will always be the novelty aspect of going to the game, especially for kids or folks who've never been to one....but generally speaking there aren't many people casually picking up and going to games regularly on a whim.

Why deal with the hassle when you can watch at home on an awesome tv, awesome sound system, and eat/drink whatever, whenever.

 

[Ghost12]

I've stated time and again places like stadiums and the movie theaters should do this. The overhead on soda and popcorn is, like, pennies a serving (soda fountains are mostly just city water, not exactly a huge expense).

 

[big dog cowboy]

its like in airports where you are spending as much as three dollars or more for a bottle of water. Simply obscene

Good comparison.

 

[Blackspider214]

I can't believe people actually spend money on Jerry's concession prices. They are ridiculous. But it's definitely not just him. It's like that at most venues in all sports. I always eat and drink before I ever went to a game. Never paid for his insane parking either.

 

[Idgit]

I love that the Falcons do that, but instead of looking at revenue, they need to be looking at profit. The article suggests they 'made more money,' but they probably mean they sold more food. With those margins, I bet they made less than many other teams.

And because the Falcons are good right now, it's early to tell if it spilled over to ticket sales or season ticket retention.

It's a really cool thing for them to do, though, regardless. I hope other teams follow suit.

 

[CPanther95]

I love that the Falcons do that, but instead of looking at revenue, they need to be looking at profit. The article suggests they 'made more money,' but they probably mean they sold more food. With those margins, I bet they made less than many other teams.

And because the Falcons are good right now, it's early to tell if it spilled over to ticket sales or season ticket retention.

It's a really cool thing for them to do, though, regardless. I hope other teams follow suit.

Unless the amount of labor to handle the higher volume was significantly higher, I bet they still increased their profits.

If you look at an AT&T hot dog sold for $5.50 - with a cost of probably $0.30 - they net $5.20. Atlanta increased revenue by 16% so the $5.50 in gross revenue became $6.38. It would take 3.2 hot dogs to gross $6.38 or $0.96 worth of hot dogs - a net of $5.42.

There are other factors, but certainly it's at least a break-even proposition if you can attribute any small percentage of merchandise sales to the policy - or you put a small value on the goodwill it creates.

 

[Idgit]

Unless the amount of labor to handle the higher volume was significantly higher, I bet they still increased their profits.

If you look at an AT&T hot dog sold for $5.50 - with a cost of probably $0.30 - they net $5.20. Atlanta increased revenue by 16% so the $5.50 in gross revenue became $6.38. It would take 3.2 hot dogs to gross $6.38 or $0.96 worth of hot dogs - a net of $5.42.

There are other factors, but certainly it's at least a break-even proposition if you can attribute any small percentage of merchandise sales to the policy - or you put a small value on the goodwill it creates.

A good way to see will probably be the rate other teams adopt the price change policy. If it’s more profit and happier customers, it ought to be a no brainer.

 

[CPanther95]

A good way to see will probably be the rate other teams adopt the price change policy. If it’s more profit and happier customers, it ought to be a no brainer.

They need drones to keep butts in the seats after halftime. Probably double revenue also if they could figure out a way to prevent having to go stand in line.

The guys most likely to eat 10 hot dogs during a 4 hour game are also the least likely to climb all the steps needed to get even one.

 

[Nightman]

Imagine that

Run down the hill and screw them over once
Walk down and get them over and over

 

[Nightman]

I love that the Falcons do that, but instead of looking at revenue, they need to be looking at profit. The article suggests they 'made more money,' but they probably mean they sold more food. With those margins, I bet they made less than many other teams.

And because the Falcons are good right now, it's early to tell if it spilled over to ticket sales or season ticket retention.

It's a really cool thing for them to do, though, regardless. I hope other teams follow suit.

Considering Jerry owns the concession company for DAL we know it won't happen there

 

[Aviano90]

I love that the Falcons do that, but instead of looking at revenue, they need to be looking at profit. The article suggests they 'made more money,' but they probably mean they sold more food. With those margins, I bet they made less than many other teams.

And because the Falcons are good right now, it's early to tell if it spilled over to ticket sales or season ticket retention.

It's a really cool thing for them to do, though, regardless. I hope other teams follow suit.

They didn't make more profit
.

https://www.bloomberg.com/news/arti...oke-the-rules-of-stadium-food-and-it-paid-off

They also bought more food -- sales were up 53 percent -- and each fan spent, on average, 16 percent more on concessions. It wasn’t enough to offset the drop in prices, though. The team made less on concessions in 2017 than it did the year before, according Steve Cannon, chief executive officer of AMB Group, the company through which Blank owns the team.

“Sure, we could shake out a few more dollars of margin under the old model, but we believe that the direction we’ve taken, given all the other positive benefits, is the bigger revenue play, period,” Cannon said.