When the Atlanta Falcons declared the food prices in their brand new $1.5 billion stadium — $2 hot dogs and sodas, $3 nachos, $5 beer — fans adored it, and people in different cities started pushing their neighborhood ownership bands to follow suit.
Falcons owner Arthur Blank had made a calculated bet that exactly what the organization lost in markup, it would regain in quantity — fans would come earlier, stay longer and buy enough food to make up the gap.
He was half-right. About 6,000 more fans per match entered the stadium earlier than they did in 2016, and generally speaking, the venue marketed as much food from the end of the first quarter of Falcons matches as it did in total matches in 2016. Fans also gave the Falcons the maximum satisfaction rating in the NFL for meals and beverages, up from No. 18 in 2016, and the maximum rating for security satisfaction, as part of the consequence of lines created shorter by all of the early entries.
In addition they bought more food — sales were up 53 percent — and each enthusiast spent, typically, 16 percent more on concessions. It wasn’t enough to offset the fall in prices, however. The group 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 group.
“Sure, we can shake a few more dollars of margin under the old version, but we believe that the management we’ve obtained, given all the other positive benefits, is that the larger earnings play, period,” Cannon stated.
Atlanta’s prices, a portion of a unique partnership with concessionaire Levy Restaurants, is a dramatic departure from regular prices in NFL stadiums. At $2, sexy dogs in Falcons home games price less than half the league average $5.19, based on this 2016 Team Marketing Report. The league’s average price for a beer was $7.38, with the San Francisco 49ers charging $10.
While no other important sports business has replicated the strategy, they are taking note. Cannon stated “dozens” of staff owners and venues have called requesting additional information on the pricing plan.
#x2019 & the group;s 2018 goal is to enhance efficiency and expand the menu. Cannon stated he believes that the Falcons’ meals and drink profit will eclipse its 2016 numbers. “This is just a very first report card,” Cannon stated. “also it states that we changed the dynamic inside of an industry which was fairly set in its own ways, it’s having an wonderful effect on our fans’ satisfaction, and, oh by the way, spending each person did move up. The system-wide affects are fantastic. ”