OT: NFL Atlanta Falcons slash concession prices in new stadium

[Fenway]

Jeremy Jacobs head will explode when he reads this. If this works it could be a game changer at arenas and stadiums everywhere.

Falcons to offer lowest concession prices in major team sports in 2017

A bottomless soda, which will come with free and unlimited refills, will cost $2 -- the same cost as a bottle of water, popcorn and a pretzel. A slice of pizza, peanuts and fries will be $3 each, while a cheeseburger will cost $5. A chicken tenders basket will cost $6.

 

[Fugu]

It's important to understand what's driving this thinking, so per the article:

Cannon said the team had a discussion as to how low it could go on the beer, so as not to hurt the fan experience, and arrived at $5 for a 12 ounce cup of a product such as Bud Light.
"In any fan survey, food and beverage is one of the most important drivers of fan experience and the one that is the most broken," Cannon said. "It's either lack of quality, lousy delivery or bloodcurdling pricing."
Cannon said the pricing was arrived at by studying the greater Atlanta marketplace and, at the very least, matching the prices that fans would pay in the area in everyday life.
The Falcons hope to make up some of the money lost on typical margins by doing volume.

I know I've turned my nose up at concessions due to the poor quality and bloodcurdling prices. Really greasy, unhealthy looking processed food. Ugh.

 

[Fenway]

It's important to understand what's driving this thinking, so per the article:



I know I've turned my nose up at concessions due to the poor quality and bloodcurdling prices. Really greasy, unhealthy looking processed food. Ugh.

At TD Garden the concessions are expensive and uneatable. Of course Jacobs does not have to worry about losing the contract. At other venues Delaware North does a fine job.

 

[Big McLargehuge]

Woah, a fan friendly move for once.

Maybe more and more fans are just skipping the concession line than being okay with paying the prices. Aside from beer I haven't had a pop or food at a game since I was a little kid...those kind of prices would change that for me.

 

[Edmonton East]

Cool, let's get other teams and movie theaters on board next.

I do see a couple issues though.

1) They actually set these prices too low. What does the general public hate more than high prices? Yearly price increases. They set themselves up to have to hike prices in the coming years. With that comes media/general public outrage.

2) Drinks. I don't know what they were thinking with cheap soda/water with free refills. People generally don't NEED to eat during a sporting event. But they do need soda/water, which generate huge profit margins. Now let's get to beer. Hey, I love getting a few beers at a game. And I absolutely loathe knowing I'm going to have to shell out $60 on drinks if I bring a date (say 3 drinks at $10 a piece). And there definitely have been times where I've skipped drinks because of the price. Which finally brings me to my point: you can't have beer that cheap. Nevermind the loss in profit margin, get ready to double your security detail. Of course there are ways to monitor consumption, but these generally have one of three flaws: A) It is easy to get around the system B) It is too costly to implement a proper IT system that goes by, say, ID type and number C) slows down concession lines which pisses people off too

 

[tarheelhockey]

Speaking as a dad who has to feed and water my kids every time I take them to a game, this would be a total game changer for me.

As it is, I make a practice of swinging through a McD's or Wendy's on game nights. Sometimes I'll smuggle in some granola bars or fruit snacks to help delay hunger issues. It's a matter of cost effectiveness over 40 games a year, cutting my total bill by 2/3rds. If I paid for arena food that many times, I wouldn't be able to afford the tickets.

If they can get prices down to being close to normal fast-food levels -- not equal, just close -- that would be enough for me to make 40 different purchasing decisions. I'm willing to pay a couple of extra bucks if it means more time at the arena and a better night for the kids, who love the experience of buying arena food. But not if its a 100%+ markup.

 

[patnyrnyg]

Most people I know tailgate at football games and don't bother buying anything inside. Last year, I went to 7 giants games. Bought 2 bottle waters at the first game as it was hot. Other than that, nothing inside all season.

 

[patnyrnyg]

Cool, let's get other teams and movie theaters on board next.

I do see a couple issues though.

1) They actually set these prices too low. What does the general public hate more than high prices? Yearly price increases. They set themselves up to have to hike prices in the coming years. With that comes media/general public outrage.

2) Drinks. I don't know what they were thinking with cheap soda/water with free refills. People generally don't NEED to eat during a sporting event. But they do need soda/water, which generate huge profit margins. Now let's get to beer. Hey, I love getting a few beers at a game. And I absolutely loathe knowing I'm going to have to shell out $60 on drinks if I bring a date (say 3 drinks at $10 a piece). And there definitely have been times where I've skipped drinks because of the price. Which finally brings me to my point: you can't have beer that cheap. Nevermind the loss in profit margin, get ready to double your security detail. Of course there are ways to monitor consumption, but these generally have one of three flaws: A) It is easy to get around the system B) It is too costly to implement a proper IT system that goes by, say, ID type and number C) slows down concession lines which pisses people off too

exactly. Aside from in-arena problems, liability due to over-serving would be a huge issue. Could you imagine if they had $1 Beer Night at the Rock when the Devils were playing the Rangers or Flyers?

 

[theaub]

$5 for 12 oz of beer isn't that cheap. Five other teams had a cheaper cost per ounce in the NFL last year (and another seven had the same).

As someone who brings in a pizza from outside before every Jays game (and on occasion makes liberal use of the designated driver stand at any Toronto sporting event), this certainly seems like a good idea. I would absolutely purchase in-stadium at these prices.

 

[patnyrnyg]

$5 for 12 oz of beer isn't that cheap. Five other teams had a cheaper cost per ounce in the NFL last year (and another seven had the same).

As someone who brings in a pizza from outside before every Jays game (and on occasion makes liberal use of the designated driver stand at any Toronto sporting event), this certainly seems like a good idea. I would absolutely purchase in-stadium at these prices.

If consider what it likely costs at bars and restaurants around stadiums and arenas, it is not that bad. At MSG, they sell 24oz drafts for $10. Which is a good deal considering the bars and restaurants in the area charge ~$8 for a pint.

 

[aqib]

Cool, let's get other teams and movie theaters on board next.

I do see a couple issues though.

1) They actually set these prices too low. What does the general public hate more than high prices? Yearly price increases. They set themselves up to have to hike prices in the coming years. With that comes media/general public outrage.

2) Drinks. I don't know what they were thinking with cheap soda/water with free refills. People generally don't NEED to eat during a sporting event. But they do need soda/water, which generate huge profit margins. Now let's get to beer. Hey, I love getting a few beers at a game. And I absolutely loathe knowing I'm going to have to shell out $60 on drinks if I bring a date (say 3 drinks at $10 a piece). And there definitely have been times where I've skipped drinks because of the price. Which finally brings me to my point: you can't have beer that cheap. Nevermind the loss in profit margin, get ready to double your security detail. Of course there are ways to monitor consumption, but these generally have one of three flaws: A) It is easy to get around the system B) It is too costly to implement a proper IT system that goes by, say, ID type and number C) slows down concession lines which pisses people off too

How many sodas is a person going to have over the course of the game. You may go to refill once. I guess the idea here is that they make less on concessions but maybe they make more on tickets. The cost of food is a turnoff to a lot of people who are deciding between going to the game and watching it on TV. That's a bigger dilemma for football than for other sports.

 

[BattleBorn]

... The cost of food is a turnoff to a lot of people who are deciding between going to the game and watching it on TV. That's a bigger dilemma for football than for other sports.

I think that's the key to all of this. There is value in seeing a live event, you'll never have the opportunity to see that event again.

You can get a boiled hot dog and a stale bun at the local high school game for $2, there's no value in paying $12 to do the same at a major league sporting event. You maximize revenue on the product with the most value, that's not hot dogs and pretzels in most cases.

Someone paying $60 for tickets and $40 for concessions seems like a much bigger rip off than $80 for tickets and $20 for concessions, at least to me. Hopefully this works, because it seems like a great concept.

 

[IU Hawks fan]

Cool, let's get other teams and movie theaters on board next.

I do see a couple issues though.

1) They actually set these prices too low. What does the general public hate more than high prices? Yearly price increases. They set themselves up to have to hike prices in the coming years. With that comes media/general public outrage.

2) Drinks. I don't know what they were thinking with cheap soda/water with free refills. People generally don't NEED to eat during a sporting event. But they do need soda/water, which generate huge profit margins. Now let's get to beer. Hey, I love getting a few beers at a game. And I absolutely loathe knowing I'm going to have to shell out $60 on drinks if I bring a date (say 3 drinks at $10 a piece). And there definitely have been times where I've skipped drinks because of the price. Which finally brings me to my point: you can't have beer that cheap. Nevermind the loss in profit margin, get ready to double your security detail. Of course there are ways to monitor consumption, but these generally have one of three flaws: A) It is easy to get around the system B) It is too costly to implement a proper IT system that goes by, say, ID type and number C) slows down concession lines which pisses people off too

$5 for 12 oz of beer isn't that cheap. Five other teams had a cheaper cost per ounce in the NFL last year (and another seven had the same).

As someone who brings in a pizza from outside before every Jays game (and on occasion makes liberal use of the designated driver stand at any Toronto sporting event), this certainly seems like a good idea. I would absolutely purchase in-stadium at these prices.

If consider what it likely costs at bars and restaurants around stadiums and arenas, it is not that bad. At MSG, they sell 24oz drafts for $10. Which is a good deal considering the bars and restaurants in the area charge ~$8 for a pint.

Yeah, the beer isn't really an amazing deal at all. The article eludes to that, they wanted everything to be a price that makes fans happy, but not "too happy", in that the fan experience could be made worse if people have more of an incentive to get hammered.

You can get a $9.75 for a 24oz Miller Lite draft at White Sox games, which I find very reasonable compared to the prices at the other 3 venues in town (but better off with an $11.25 Revolution Anti-Hero IPA). This is right in line with that, nothing mind blowing unlike the food & soft drink prices the Falcons will offer. They just made it sound cheaper by going to 12oz cups, rather than offering a $6.66 16oz.

 

[Gnashville]

"We offer low grade, foul smelling food at exorbitant prices and are proud of it"

 

[Fixed to Ruin]

At Rexall Place I once ate a dog treat wrapped in sawdust.

They called them hot dogs.

 

[AtlantaWhaler]

Someone paying $60 for tickets and $40 for concessions seems like a much bigger rip off than $80 for tickets and $20 for concessions, at least to me. Hopefully this works, because it seems like a great concept.

Bingo. Tickets for the new stadium are going to be insane. They'll get their $$.

I took my family to a Braves game a couple weeks ago. It was $22 per ticket ($90 total) and I spent $75 on the food. Crazy.

 

[patnyrnyg]

Bingo. Tickets for the new stadium are going to be insane. They'll get their $$.

I took my family to a Braves game a couple weeks ago. It was $22 per ticket ($90 total) and I spent $75 on the food. Crazy.

1) what kind of seats did you get for $22? Where there cheaper options?

2) Why not eat before the game?

 

[tarheelhockey]

How many sodas is a person going to have over the course of the game. You may go to refill once. I guess the idea here is that they make less on concessions but maybe they make more on tickets.

That, and also a couple of other factors: economy of scale, and impulse buys.

Sodas are a great example because they cost so little to make. If they're sold for $4, you're going to lose a lot of people who intuitively know that they can get a bottle of soda for $1.50 at a vending machine or gas station. But selling them for $2 makes it an easy decision to swing by the concession stand and pick up a soda on the way to your seats. That means a lot more inventory being moved.

Also, if you're regularly stopping by for a $2 soda, chances are you pick up a hot dog or some peanuts while you're there. If the soda is prohibitively expensive, then people aren't going to eat at the stadium at all, and you lose all the impulse sales that go along with it.

You can get a $9.75 for a 24oz Miller Lite draft at White Sox games, which I find very reasonable compared to the prices at the other 3 venues in town (but better off with an $11.25 Revolution Anti-Hero IPA).

See, that's nuts to me. You're paying over $11 for one beer and it's a good deal?

 

[theaub]

It is all relative.

At the Rogers Centre for example, I'd be more likely to spend $11 on a beer than $5.50 on a pop. Maybe that's their business plan...

 

[IU Hawks fan]

See, that's nuts to me. You're paying over $11 for one beer and it's a good deal?

It's 24oz. A 12oz is $6 in the average Chicago area bar and a 16oz draft is usually $6 or 7.

So on a per ounce basis, it is either cheaper or near equal at the ballpark than at the bar. The 16oz is either $7.25 or $7.75, can't remember which, but either way it's nearly the same price that you'd get it for at a bar.

I should probably add that just 2 seasons ago it was $9.75. So it went from best deal there is level to just a decent enough deal, IMO.

 

[Major4Boarding]

Reading the posts in this thread I was thinking there had to be either an operator/purveyor cut-out or AMB straight-up would operate the concessions outright. That, to me, would explain the ability to lower the prices. When going through the article:

Unlike most teams, selling concession rights in exchange for guaranteed cash, Blank -- who had often talked about making concession prices match those offered to patrons at Augusta National for the Masters -- didn't make that deal. Instead, his company forged an operator relationship with Levy Restaurants that comes with a flat management fee. That allowed the team creativity to make the drastic change.

So between ticket prices, increased concession volume ("65 percent more availability than the team has in the Georgia Dome"), and streamlined concession lines I can see now how they were able to.

 

[patnyrnyg]

See, that's nuts to me. You're paying over $11 for one beer and it's a good deal?

good deal? No, just less of a rip-off. $9.75 for Miller or $11 for a real beer, I'll pay the extra $1.25. If I can afford $9.75, I can afford $11. Secondly, when you compare to prices at restaurants and bars, it is generally not as bad as it seems.

 

[patnyrnyg]

Reading the posts in this thread I was thinking there had to be either an operator/purveyor cut-out or AMB straight-up would operate the concessions outright. That, to me, would explain the ability to lower the prices. When going through the article:



So between ticket prices, increased concession volume ("65 percent more availability than the team has in the Georgia Dome"), and streamlined concession lines I can see now how they were able to.

A friend of mine has been in the concession business since college. Started with Volume Services, then went to Delaware North. No idea with whom he is with now. He was involved with creating menus, pricing, every aspect of the business. In every venue he worked (Cleveland Brown Stadium when it first opened, Pro Player, Spring training site in Jupiter, Fl, Lincoln Financial Field) the team always had input on the pricing. He and his boss would meet with reps from the food companies. Sample everything. Then meet with people from the team to discuss what products they wanted to offer and the price. I went to visit him at the Jupiter complex and sat in on a meeting with a vendor. Vendor was pushing Chicken Fries, this was back around 2000, 2001. They were good, and they wanted to go with it. When they met with reps from the Cardinals (not sure if the Expos were involved even though they shared the facility) they couldn't agree on a price. My friend and his boss wanted to charge $4.50 for a small cup and $6.50 for a large cup. Team wanted $3 and $5 (could be off on the numbers), so they didn't buy the product or add it to the menu. Some teams get more involved and scrutinize the stuff more than others, but they all have a say. They know that the general public thinks it is the teams and leagues setting all the prices, so they know they need to be somewhat involved.

 

[Terrier]

Falcons owner Arthur Blank must be a regular at the Masters just up the road, where the concession prices are jaw dropping, in a good way. For my part, as a regular at pro and college hockey games here in Boston, my purchases are limited to one or two sodas. Thankfully, the hockey arenas that dot Boston generally have food and drink options in the vicinity(i.e., T's Pub next to Agganis Arena).

http://www.ajc.com/news/sports/golf/masters-food-may-be-cheapest-sports/nqzBg/

 

[AtlantaWhaler]

1) what kind of seats did you get for $22? Where there cheaper options?

2) Why not eat before the game?

1) Meh..decent. Upper, third base line.

2) No, was busy getting the family down to the game on time.