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Sports and Entertainment Arena Foodservice Trends in the U.S.

March 2012 | 167 pages | ID: SD3917ED4BEEN
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Facing stagnating seating capacity, attendance challenges, and a difficult ticket pricing environment, the U.S. sports and entertainment industry has sought to increase per capita guest spending by enhancing amenities and improving suite and club seat programs. In both cases, foodservice plays a central role, according to Packaged Facts’ Sports & Entertainment Venue Foodservice Trends in the U.S.

Borrowing from the restaurant industry—and with significant input from foodservice contractors—venue operators, managers and promoters are aggressively improving food selection, food quality food, menu flexibility, and better customer service to enhance the fan experience. Our analysis shows that improved concessions and higher-end suite and club seat foodservice programs are transforming the guest experience—and transforming many major venues into food destinations.

To fully leverage sports and entertainment foodservice operations, industry participants should understand how generational shifts in venue attendance shape the kinds of food and drink they provide patrons, keep abreast of restaurant trends that are quickly reshaping consumers’ expectations about sports and entertainment venue foodservice, and monitor the competitive landscape to help keep on trend. Sports & Entertainment Venue Foodservice Trends provides the guidance industry participants need to navigate these issues, and much more. Key content includes:

A market size and forecast for the U.S. sports and entertainment foodservice market, as well as supporting analysis on foodservice contractor sales and venue revenue estimates.

Analysis of macroeconomic trends shaping sports and entertainment foodservice growth, including an economic forecast through 2014; consumer confidence and unemployment trends; consumer recreation spending trends; travel and leisure spending trends; sports and entertainment attendance trends; major league cost of attendance analysis; and suite and club seat analysis.

Assessment of trends affecting food service in the sports and entertainment industry, with an emphasis on sports stadiums and arenas, including menu additions, enhancements, and upscaling; health trends; and mobile technology.

Sports event usage, mean usage & foodservice usage (food, non-alcoholic beverage, and alcoholic beverage) trends for MLB, the NFL, the NBA, the NHL, NASCAR and college football.

Entertainment event usage & foodservice usage trends for music performances and theatrical performances, as well as attendance trends (with generational analysis) for rock/pop, country, classic, and R&B/hip-hop/rap music.

Analysis of a cross-section of major foodservice operations at major U.S. sports and entertainment venues, including Cowboy Stadium, Daytona International Speedway, the L.A. Live complex, Madison Square Garden, and Oriole Park.

This report also includes in-depth owner, operator & contractor sports and entertainment foodservice analyses for ARAMARK, Compass Group, PLC/Levy Restaurants, Delaware North Companies/Sportservice, International Speedway Corporation, Live Nation Entertainment, Inc., and Madison Square Garden, Inc.
CHAPTER 1: EXECUTIVE SUMMARY

Scope and Methodology
  Scope of coverage
Methodology
  Consumer survey methodology
  Market size and forecast
  Other sources
  Industries & markets covered in this report
  Restaurant categories
  Limited-service restaurant definitions
  Full-service restaurant definitions
  Other definitions
Sports & Entertainment Foodservice Market Size and Forecast
Sports & Entertainment Foodservice Revenue Drivers
Menu, Health and & Mobile Technology Trends
Sports Event Usage & Foodservice Usage Trends
Entertainment Event Usage & Foodservice Usage Trends
  Chapter 8: Venue Foodservice Case Studies
  Cowboys Stadium
  Daytona International Speedway
  L.A. LIVE and associated venues
  Madison Square Garden Arena
  Oriole Park
Owner, Operator & Contractor Foodservice Analyses

CHAPTER 2: FOODSERVICE MARKET SIZE AND FORECAST

Market size and forecast

  You’re in the business of entertaining people
  Wouldn't people want wonderful food in an arena?
  A note on our market size and forecast
Graph 2-1: Sports & Entertainment Industry Foodservice Revenue, 2007-2014
Major league sports; major league revenue
  Eye popping foodservice revenue generation
Table 2-1: Major League Sports Revenue, by League, 2011

The business of bowl games

BCS National Championship Game: $2.6 million in foodservice spend
Fiesta Bowl: 30% of foodservice spend from club seats and executive seats
Table 2-2: Fiesta Bowl Foodservice Revenue, 2007 and 2008
2011 World Series: Game 6 per capita spend hits $50

Call a contractor

Table 2-3: U.S. Sports & Entertainment Foodservice Revenue:
Big Four Foodservice Contractors, 2011
  Going your own way
  At major league facilities, foodservice contractor share at almost 90%

CHAPTER 3: SPORTS & ENTERTAINMENT FOODSERVICE REVENUE DRIVERS ECONOMIC FORECAST THROUGH 2014

  GDP: A long time getting back, but finally passes pre-recession levels
  Forecast factors
  On a positive note
  On a negative note
  The projections
Graph 3-1: Unemployment, GDP & Inflation Forecast, 2012, 2013, 2014 & Longer Term
Consumer confidence showing signs of mending
Graph 3-2: Unemployment Rate, Savings Rate & Consumer Confidence, 2007-2012
Unemployment remains high but is tapering downward
As consumer discretionary spending goes, so goes attendance-related revenue
  Personal consumption expenditures
Graph 3-3: Personal Income and Spending Trends, 2007-2011
Spending on recreational services outpaces overall consumer spending
Graph 3-4: Personal Spending on Recreational Services, 2007-2011
Travel and tourism spending
  Tourism spending
Travel spending and volume to moderate in 2012 and beyond
Table 3-1: U.S. Travel Forecast, 2007-2014

Attendance trends

Declining major league sports guest counts underscore need for other revenue options
Table 3-2: Major League Attendance: MLB, NFL, NBA & NHL, 2007-2011
Table 3-3: Major League Attendance: MLB, NFL, NBA & NHL, Percent Change, 2007-2011
College sports attendance faring better
Table 3-4: NCAA Attendance MLB, NFL, NBA & NHL, Percent Change, 2007 vs. 2011
Entertainment attendance holding steady
Table 3-5: Major Entertainment Attendance Trends, 2007-2011

Ticket and ancillary revenue cost trends

An expensive endeavor
  MLB ticket prices trending downward
  NFL ticket prices trending upward
  NBA ticket prices trending downward
Table 3-6: Cost to Attend MLB, NFL, NBA and NHL Games, by Type of Purchase, 2010
Premium seating continues to boom
Suites boost per capita revenue
Table 3-7: Major Sports League Venues: Seats, Suites and Club Seats
How suite it is!
  Legends Hospitality Group moves suites quickly
Corporations fueling growth
  New marketing initiatives provide growth pillar—and foodservice is part of foundation
  JPMorgan weaves its brand into the venue—and beyond
  Up in the air with Chase Bridges
  A casual, luxurious 1879 CLUB
  Delta Air Lines: custom-branded presence
  DELTA SKY360o Club

CHAPTER 4: MENU, HEALTH AND & MOBILE TECHNOLOGY TRENDS OVERVIEW TRADITIONAL FARE STILL REIGNS

Hot dog is king of the hill
  Tale of the tape
But parks also positioned as food destinations
Safeco Field’s premium quick-service concepts
Meeting evolving consumer expectations
  Fans as foodies
Going upscale: examples
  ARAMARK
  Sportservice
  Centerplate
  Levy Restaurants
Wrigley Field and Tropicana Field
The Minnesota Viking’s premium conversion
Upscale picnicking

To your health

Gluten-free availability becoming the norm, not the exceptions
All-natural sausages
Super-size me
Concessions health violations an issue
Local, local, local
  Orioles Park weaves local into the mix
  Catering with local flair
  Cultural tie-ins
  Tying foods and brands to local community

Investments/upgrades

Foodservice renovations
  University of Michigan
  Notre Dame

Mobile technology integration

  MLB iPhone ordering
  NFL mobile food platform

Promotional activity

CHAPTER 5: SPORTS EVENT USAGE & FOODSERVICE USAGE TRENDS

Demographic analysis: sports usage trends
Table 5-1: Major Sports and Entertainment Attendance, Mean Visits & Visit Share, by Type of Sport/Entertainment , 2011
Major League Baseball attendance trends underscore high cost of attendance
Table 5-2: Major League Baseball Attendance & Mean Annual Visits,
Selected Demographics, 2011
  MLB consumer food and drink analysis: food purchases lead beverages
Table 5-3: Major League Baseball Visitors: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011
National Football League skewed by HH income
Table 5-4: National Football League Attendance & Mean Annual Visits,
Selected Demographics, 2011
  NFL consumer food and drink analysis: food front and center
Table 5-5: National Football League Visitors: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011
National Basketball Association
Table 5-6: National Basketball Association Attendance & Mean Annual Visits,
Selected Demographics, 2011
  NBA consumer food and drink analysis: food front and center
Table 5-7: National Basketball Association Visitors: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011
National Hockey League
Table 5-8: National Hockey League Attendance & Mean Annual Visits,
Selected Demographics, 2011
  NHL consumer food and drink analysis
Table 5-9: National Hockey League Visitors: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011
NASCAR
Table 5-10: NASCAR Attendance & Mean Annual Visits,
Selected Demographics, 2011
  NASCAR consumer food and drink analysis
Table 5-11: NASCAR Visitors: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011
College football
Table 5-12: College Football Attendance & Mean Annual Visits,
Selected Demographics, 2011
  College football consumer food and drink analysis
Table 5-13: College Football League Visitors: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011

CHAPTER 6: ENTERTAINMENT EVENT USAGE & FOODSERVICE USAGE TRENDS

Entertainment event attendance trends

Table 6-1: Major Entertainment Attendance Trends, 2007-2011

Entertainment event attendance: generational analysis Rock/pop music event attendance

Table 6-2: Rock/Pop Music Event Attendance: Demographic Analysis, 2011
Generational analysis
Table 6-3: Rock/Pop Music Event Attendance:
Demographic Analysis by Generation, 2011

Country music event attendance

Table 6-4: Country Music Event Attendance: Demographic Analysis, 2011
Generational analysis
Table 6-5: Country Music Event Attendance:
Demographic Analysis by Generation, 2011

Classic music event attendance

Table 6-6: Classic Music Event Attendance: Demographic Analysis, 2011
Generational analysis
Table 6-7: Classic Music Event Attendance:
Demographic Analysis by Generation, 2011

R&B/hip-hop/rap music event attendance

Table 6-8: R&B/Hip-Hop/Rap Music Event Attendance:
Demographic Analysis, 2011
Generational analysis
Table 6-9: R&B/Hip-Hop/Rap Music Event Attendance:
Demographic Analysis by Generation, 2011

Comedy club attendance

Table 6-10: Comedy Club Attendance: Demographic Analysis, 2011
Generational analysis
Table 6-11: Comedy Club Event Attendance:
Demographic Analysis by Generation, 2011

Musical performance demographic analysis

Table 6-12: Musical Performance Attendance & Mean Annual Visits,
Selected Demographics, 2011
Musical performance consumer food and drink analysis: food front and center
Table 6-13: Musical Performance Attendees: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011

Theatrical production demographic analysis

Table 6-14: Theatrical Production Attendance & Mean Annual Visits,
Selected Demographics, 2011
Theatrical production consumer food and drink analysis: alcohol takes a back seat
Table 6-15: Theatrical Production Attendees: Food, Non-Alcoholic Beverage & Alcoholic Beverage Use, Selected Demographics, 2011

CHAPTER 7: VENUE FOODSERVICE CASE STUDIES COWBOYS STADIUM

  800 concession points of sale
  Event space highlights
Technologically advanced
And very expensive
  An operation that generates $300 million a year
  And $30 million in foodservice revenue
Table 7-1: Cowboys Stadium Revenue Estimates, 2010
Legends Hospitality Management ups the foodservice ante
  More upscale offerings = higher average spend per capita
  Food service culture
  Concessions standouts: Vaqueros, Kobe burgers & buttermilk fried-turkey sandwich
  Regional and local flare
Table 7-2: Cowboys Stadium, Selected Menu Items and Prices, 2011
Powering up suites
  Field Level Suites
  Hall of Fame Suites
  Silver Suites
  Ring of Honor Suites & Star Suites
Clubs & club seats
Catering
  Program initiatives
  On the menu
Hosting the Super Bowl XLV
  Reducing food waste
Fly in the ointment: initial health violations
Outside the stadium
  Fast food options lurk
  Tailgating

Daytona International Speedway

Sprint Fanzone: an interactive entertainment, food & drink experience
King of Beers is King of Daytona
Budweiser Party Porch: entertainment, food & drink with a view
The Budweiser Bistro
BYO food and beverage: bring it in
Guest incentives
  Concessions specials and menu items
  And new menu items
Graph 7-1: Daytona International Speedway Concessions Map, 2011
Suite development
  Frontstretch Suites
  Superstretch Suites
  Executive Suites
  NASCAR HALL of Fame Suite
On the suite menu

L.A. LIVE and associated venues Dining galore, with upscale flair

Farmers Field
Nokia Theatre
  Concessions
  Food and drink promotional activity
STAPLES Center

STAPLES Center concessions: a three-tiered system

  Main Concourse
  Upper Level
  Suite Level
STAPLES Center Luxury Suites
  Sold out!
  Online ordering
  Unique menu offerings
Table 7-3: STAPLES Center Luxury Suites, Selected Menu Items, 2011
Luxury Suite Packages: Silver, Gold or Platinum?
  Annual licenses
Event Suites

Madison Square Garden Arena

The Madison Square Garden Arena Transformation
  Benefits
  Additions
  Corporate offerings
  More suites; better suites; new clubs

Foodservice analysis

  Concessions
MSG Signature Collection
Concepts on the horizon
  The Ainsworth Prime
New marketing initiatives provide growth pillar—and foodservice is part of foundation
  JPMorgan weaves its brand into the venue—and beyond
  Up in the air with Chase Bridges
  A casual, luxurious 1879 CLUB
  Delta Air Lines: custom-branded presence
  DELTA SKY360o Club
  World renowned chefs at the helm
  Coca-Cola locks down distribution rights

Oriole Park

A look back
Table 7-4: Oriole Park Opening Day Foodservice Volume, by Menu Item, 2007
Changing of the guard: from ARAMARK to Delaware North Companies Sportservice
Today
  Food and beverage enhancements
  Going local
  The payoff: 10% sales increase
  Retail enhancements
Concession and restaurant options
  All-Star Café
  Bistro Tables
  Boog's BBQ
  Bud Light Warehouse Bar
  Eutaw Street
  Miller Lite Flite Deck
  Natty Boh Bar
  Private Suites
New food items
All-inclusive ticket, food and beverage option
  Year-round picnicking
  Upcoming restaurant concessions and retail

ARAMARK

Foodservice operations

CHAPTER 8: OWNER, OPERATOR & CONTRACTOR FOODSERVICE ANALYSES

North America Business and Industry
North America Education
North America Health Care

North American Sports and Entertainment

  Sports
  Convention centers and civic centers
  Performing arts centers and amphitheaters
Venue analysis
Table 8-1: ARAMARK Sports and Entertainment Accounts,
by Sport, Venue/Purpose & Team, 2012
Short-term contract gains mask longer-term losses
Table 8-2: ARAMARK Sports and Entertainment Contract Trends, 2005-2011
Sales analysis: 2009-12
  Steep Sports & Entertainment revenue dip followed by moderating losses
Table 8-3: ARAMARK Sports & Entertainment by the Numbers, 2008-2011

Compass Group, PLC/Levy Restaurants

Compass Group North America (CGNA)
  Sales summary
Foodservice strategy
  Room for growth
  It Takes You - Eat Local
  Leveraging role of single-source provider
North America Business & Industry Sector
North America Education Sector
North America Health Care Sector

Sports & Recreation: Levy Restaurants

AEG Facilities gives Levy global wings
  Cross pollination
  L.A. Live
Levy Restaurants sales performance: very positive
  2011
  2010
  2009
Table 8-4: Compass Group by the Numbers, British Pounds Sterling: 2009-11
Table 8-5: Compass Group by the Numbers, U.S. Dollars: 2009-11
Table 8-6: Compass Group North American Subsidiaries, 2012

Delaware North Companies

Segments
Gaming
  Recent activity
Travel Hospitality Services
  Recent activity
Parks & Resorts
  Recent activity
Delaware North Companies Boston
Sportservice
Table 8-7: Major Delaware North Sportservice Accounts, by Sport, Venue & Team, 2012
  Recent contract activity
  Menu rule: be flexible
  At Sportservice parks across the nation, “local” is the word
Food Network partnership flowering
  First stop: Major League Baseball
  From suites to concessions
  Next stop: NFL, NHL and NBA
  New NFL concessions staple: beef brisket
  Five stadiums
  Five local variants
Sales performance
  Sportservice revenue tops $600 million
Table 8-7: Delaware North Companies, Key Metrics, 2011

International Speedway Corporation

Table 8-8: International Speedway Corporation, Racetrack Metrics, 2011
Growth strategy
  Initiatives to grow the core business
  Improving the guest experience
Ticketing and admissions
  Adjusting sellable seating capacity
Integrated foodservice operations
Concessions
  Significant price reductions
  New items featuring local appeal
  Now credit card ready
Sales performance
  A steep falloff; no turnaround yet
Table 8-9: International Speedway Corporation, Key Metrics, 2007-11

Live Nation Entertainment, Inc.

Strategy
  Promoting more concerts in more markets
  Growing advertising and sponsorship
  Selling more tickets and capturing more of gross ticket revenue
Segment sales analysis
  Ticketing
  Artist Nation
  eCommerce
  Sponsorship
Concert segment
Venues
Table 8-10: Live Nation Entertainment, Inc. Music Venues by Type & Ownership/Management Status, 2011
Table 8-11: Live Nation Entertainment, Inc. Event Analysis: Events Held, Attendance, Revenue and Tickets Sold, 2009-2011
Sales performance
  2011
  2010
Table 8-12: Live Nation Entertainment, Inc. Revenue, by Geography, 2009-2011

Madison Square Garden, Inc.

MSG Sports
MSG Media
MSG Entertainment
Venues
  Madison Square Garden Arena
  The Theater at Madison Square Garden
  Radio City Music Hall
  The Beacon Theatre
  The Chicago Theatre
  The Wang Theatre
Sales performance
  Foodservice making positive contributions
Table 8-13: Madison Square Garden, Key Metrics, 2008-11


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