Stadium Concessions: Trends and Insights for 2023 and Beyond
For stadium concession professionals, it’s time to play ball.Venues for sports events and concerts are enjoying a resurgence of attendance back to pre-pandemic levels. What’s more, fewer consumers say they intend to cut back on live entertainment, meaning more dollars will continue to move into leisure and experiences.
Industry research firm Technomic predicts strong growth into 2024 for this segment:
- Recreation real $ growth forecast 2023 vs. 2022 (excludes inflation): $23.6MM, up +3.7%
- Recreation real $ growth forecast 2024 vs. 2023: +6.8%
But something else is also rising: Expectations of the food and beverages offered at events.
- 62% of consumers say food options are very important when going to a sports/concert stadium.
- Yet only 44% of consumers were extremely or very satisfied with their food and beverage purchases at a sports/concert stadium—statistically lower than the recreation segment average.
This represents a prime opportunity to improve your customers’ satisfaction while ramping up sales and profitability.In this post, you’ll get a snapshot of the stadium concession customer today, learn what they’re looking for, and see what’s new on stadium menus. You’ll also find solutions to reduce your labor and improve your profitability.
Who’s the customer for stadium concessions in 2023?
A third of all consumers visited a sports/concert stadium in the last six months. These rates run higher among males, Gen Z and Millennials. That’s a lot of hungry, thirsty people!
- 78% of consumers who visited a sport/concert stadium ordered food, particularly handhelds (49%), apps/sides (22%), and burgers (22%).
- 52% of F&B purchases at a sport/concert stadium were impulse purchases.
- The average customer spent $32.02 on purchases at their last visit to a sport/concert stadium.
- 23% of consumers report their visitation to sport/concert stadiums has increased over the last year.
- 28% anticipate their visitation will increase over the next year.
What customers say stadium concessions are doing right (and wrong)
Sports/concert stadiums thrive when they have welcoming staff, a diverse selection of beverages, and efficient service. However, fewer than 20% of patrons believe that these venues stand out in terms of providing discounts or exclusive food and beverage items.
What would make fans purchase more food and beverages at stadiums?
According to the researchers at Datassential, sports and concert stadium attendees would be more inclined to buy more food at events if they were offered a greater variety of food options, larger portions, and healthier, snacking, and unique choices. A small fraction of patrons—roughly one-fifth—reported that nothing would motivate them to buy food more frequently at these venues.
All Stadiums And Arenas Are Suffering From The Same Challenge. Concession Lines
The two biggest culprits for derailing food and beverage sales are slow service and fear of missing game action. Even the perception of lengthy waits at concessions will rob sales: 45% of fans said they had given up buying food or beverages at least once in the past 12 months because lines were too long. Not only are fans being discouraged from purchasing stadium concessions, but such incidents are also damaging the fan experience.[embed]https://youtu.be/hg2hc90SYWk?si=eETDa1Pk9OHVr0Ao[/embed]Technology powers stadiums in countless ways, but its capacity to enhance a staple of the fan experience – buying food and beverage – is underutilized. Improving concessions demands the attention of venue operators because it represents “low-hanging fruit” to boost sales and engage fans.
Fixing issues such as long lines lead to a direct ROI.
Not only do fans acknowledge that food and beverage purchases usually are made “on impulse” – meaning they can be readily influenced – they spend more if their food and beverage experience improves. Keep in mind fans in all countries said they would spend at least 30% more, on average, if wait times were cut in half.
The season to make changes has arrived
According to Datassential, the number-two reason consumers visit sport/concert stadiums is to indulge/treat themselves. In a post-COVID world, there is an undeniable craving for experience, and food & beverage should be a central attraction. With DTG’s Cooler PowerStation, you can create a consistently positive beverage experience for fans while decreasing your labor and food costs.
Ready to learn more?!
Check out DTG’s Cooler PowerStation BrochureSchedule a FREE DEMO in our Solution Center