8/13/2016 TheEconomyofFoodatSportingEvents

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TheeditorsatSportsManagementDegreesdecidedtoresearchthetopicof:

TheEconomyofFoodatSportingEvents

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8/13/2016 TheEconomyofFoodatSportingEvents
Staplessuchashotdogs,peanuts,andbeercanstillbefoundatSportingEvents,rightalongsidelobsterrollsandcornbeefsandwichesallfora
steepprice!Withstadiumfeesandtheteam'stakeoftheprofits,thehighpriceofconcessionstandfoodatsportingeventsistheproductof
complicatednegotiations.

Twothirdsormoreofafacility'stotalconcessionsrevenuescomefromhotdogs,peanutsandotherballparkstaples.

Drinksalmostalwayshaveveryhighprofitmargins(inexcessof90%)

HotDogsStats
Whatoneballparkfoodcanyounotlivewithout(2008info)?
63:percentageoffansthatsaidhotdogs
18:percentageoffansthatsaidpeanuts
19:percentageoffansthatsaidpizza,cottoncandy,andcrackerjacks

80:percentageoffansthathaveeatenahotdogatasportingeveninthepastyear,orwilleatoneatasportingeventthisyear.

20,421,361:projectedsaleofhotdogsatMajorLeagueballparksintheUSin2013
28,113:numberoftimestheamountofhotdogsconsumedwouldroundthebases
361:numberofhomegamesitwouldtakeforall56,000fansatDodgerStadium(MLB'slargeststadium)toeat20,421,361hotdogs

ThereisonlyonemajorleagueballparkthatsellsmoresausagesthanitdoeshotdogsMillerParkinMilwaukee,WI.5

150:averagenumberofhotdogsabaseballvendorsellspergame
1012:thousandhotdogsnumberofhotdogsabaseballvendorsellsperseason.6
40:pounds,approximateweightofavendor'shotdogbin,fullyloaded
45:miles,averagedistancevendorswalkpergameupanddownstairscarryingtheirbintheyworkoncommissionandtips,sotheymovefast

SignatureDishesandBrands

Detroit'sComericaPark

ConeyDogsmotheredinchiliandcheesefromLeo'sConeyIsland
KielbasawithpeppersandonionsfromtheKowalskiSausageCompany
LittleCaesar'spizza

NationalsParkinWashington,D.C.

Ben'sChiliBowl

GreatAmericanBallpark

MontgomeryInnpulledporksandwich

Phillies'ballparkinPhiladelphia

Twolocalcheesesteakrestaurants

RogersCentre

Gyrosandsouvlaki

FenwayPark

Lobsterrolls
Clamchowder
Cubansandwiches
TurkeyBLTs

TropicanaField

"Chipsticks"(potatochipscookedonawoodenskewer)

KaufmanStadium

"Espinacaandchips"(chipswithspinachdip)

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8/13/2016 TheEconomyofFoodatSportingEvents
USCellularField

Peanutbutterandjellysandwiches
Cornedbeefsandwiches

OrielParkatCamdenYards

Rockfishtacos
Bacononastick(everything'sbetteronastick)
Crabcakeburgers(crabcakeontopofbeefpatty)

HEALTHISSUESATSPORTSARENASANDSTADIUMS(2009)
Thereare107NorthAmericanarenasandstadiumsthatarehometoMajorLeagueBaseball,NationalFootballLeague,NationalHockeyLeagueand
NationalBasketballAssociationteamsin2009.

28:percentage(30outof107)ofarenas/stadiumswithmorethanhalfoftheconcessionstandsorrestaurantscitedforatleastone"critical"or
"major"healthviolation.

CONCESSIONSBIGBUSINESS(2009data)

$26million:twoyearcontracttoprovideconcessionsattheUniversityofPhoenixStadium.
$13million:annualconcessionsalesattheUniversityofPhoenixStadium
$5.8million:profitpromisedbacktotheArizonaCardinals,FiestaBowl,andtheArizonaSports&TourismAuthoritycombined

SampleConcessionsProductProfitMargins

4764:percentageprofitmarginonnachos
6281:percentageprofitmarginonhotdogs
6975:percentageprofitmarginonpizza
8287:percentageprofitmarginonasmallpopcorn
8892:percentageprofitmarginonalargepopcorn
9297:percentageprofitmarginonsnowcones

Overall,theTeamcontrolsallbrandsofferedattheirvenue,oftendirectedbytheresultsoffansurveys.

AveragecostofattendinganNFLgame(familyoffour)

FanCostIndex(FCI)2012

FCI:$443.93
(SampleofexpensesthatmakeuptheFCI)
Ticket:$78.38(x4)(singleticketinNewYorkGiantsin2012costs$464.75)
Beer:$7.28(x2)(MostexpensiveSanDiego'sQualcommStdmBuffalo'sRalphWilsonStdmat$9)
SoftDrink:$4.57(x4)
HotDog:$4.84(x4)

LowestFCI:JacksonvilleJaguars=$342.70

HighestFCI:DallasCowboys=$634.78

AveragecostofattendinganMLBgame(familyoffour)

FanCostIndex(FCI)2012
FCI:$207.68
(SampleofexpensesthatmakeuptheFCI)
Ticket:$26.98(x4)
Beer:$6.10(x2)
SoftDrink:$3.71(x4)
HotDog:$4.13(x4)

LowestFCI:ArizonaDiamondBacks=$145.94

HighestFCI:BostonRedSox=$336.99

13ofthe30MLBfranchisesofferedallyoucaneatseatingsectionsforallorpartofthe2008season.

AveragecostofattendinganNBAgame(familyoffour)

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8/13/2016 TheEconomyofFoodatSportingEvents
FanCostIndex(FCI)2010
FCI:$301.06
(SampleofexpensesthatmakeuptheFCI)
Ticket:$48.48(x4)
Beer:$6.96(x2)
SoftDrink:$3.95(x4)
HotDog:$4.50(x4)

LowestFCI:MemphisGrizzlies=$192.80

HighestFCI:NewYorkKnicks=$608.78

AveragecostofattendinganNHLgame(familyoffour)

FanCostIndex(FCI)2013
FCI:$354.82
(SampleofexpensesthatmakeuptheFCI)
Ticket:$61.01(x4)
Beer:$7.07(x2)
SoftDrink:$4.06(x4)
HotDog:$4.48(x4)

LowestFCI:PhoenixCoyotes=$253.30

HighestFCI:TorontoMapleLeafs=$631.13

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