Give ‘em what they want: Concessionaires target their diverse customers

By Meredith A. Ely

Not too long ago, a concession stand was considered trendy if it had more to offer than popcorn, soda, candy and peanuts. Now, baseball fans in San Diego munch on fish tacos; skiers in Vermont warm up with branded coffee; football enthusiasts in Seattle nosh salmon burgers; and concertgoers in Florida dig into Cuban wrap sandwiches during intermission. Diverse customers with a variety of taste preferences have forced concessionaires to evaluate their offerings. Catering to the customer is what keeps concessionaires in business, but depending on geography, event, and demographics, offerings are varied.

Meeting expectations

The overriding theme operators have found in concessions is that variety is in fact the spice of life—and concessions. Old favorites combined with new offerings are the most lucrative blend in concessions, according to Carmen Torzon, vice president of Volume Services America, Rosemont, Ill.

"The expectation level of customers has never been higher," says Torzon. "Customers know what they want, and they want it now, and we as providers must give them variety."

Jim Fischer, general manager for Fine Host Corp. at Pro Player Stadium, Miami, Fla., says his company is constantly trying to meet customers’ needs as they want to expand their concessions horizons and try new and different concepts.

"The concept has to be more than just taste good—we have to make sure large numbers of customers will make purchases," says Fischer. He points out every concessionaires’ variety nemesis—even if the concept seems creative, unique, and is requested by customers, per caps must back up their reason for existence.

Surprising results

Some concepts’ successes or lack thereof seem to go against preconceived notions. Pro Player Stadium, which hosts Major League Baseball’s Florida Marlins and National Football League’s Miami Dolphins, has experimented with Cuban and kosher concepts for the past three years, both with little success.

"We try to cater to as many groups as possible," says Fischer. "The food was good, but the sales were not. It's not that we won't ever try them again."

Even in the face of a failed "ethnic" concept, Fischer said one of the stadiums’ most popular products is a Colombian sandwich called an arepa, a cornbread meal patty, topped with cheese, cooked on a griddle and served on a bun. He says about 100,000 are sold per year, partly because portability of a product is of extreme importance at a stadium, and partly because they are "tasty."

"We are conscious that people don't want to eat at a table—they want something they can pick up and carry with them to go watch the game," says Fischer.

Defining demographics

Foodservice contractors know that sales determine the success of a new concept or product at a venue, but can they predict its staying power in the concessions industry? Both target marketing and surveys have helped pinpoint what customers like. Bruce Turner, national director of development at Sodexho Marriott, Boise, Idaho, oversees the development of surveys and focus groups. The most recent battery of surveys were taken at college and minor league baseball games around the country to determine satisfaction with Sodexho’s concessions offerings.

"We use focus groups with actual patrons and compile data from season ticket holders to help us understand our customer," says Turner. "Meeting the customers’ expectations is really important, but in general, purchasing decisions vary, mostly based on the type of event they are attending."

Torzon agrees that sales are mostly event-driven, but concedes that "geographic impact has a role to play" in buying decisions.

"There are regional palate differences…and purchasing decisions depend on the event," says Turner. For example, a couple at a classical music concert can buy chocolate dipped strawberries, cheesecake, or a bottle of wine, and a dad taking his kids to a circus may lean towards cotton candy and peanuts. At a hockey game, where predominately males are in the stands, beer sales skyrocket, as opposed to a family event.

Of course, some regional favorites exploded onto the national scene.

"Nachos, a Texas phenomenon a while ago, are now standard—no concession operation is without nachos," says Torzon.

"Our concessions sales are different by every location, from ski areas to amusement parks to convention centers," says Joe Armstrong, executive vice president of Boston Concessions, Boston, Mass. "I believe preferences overall are guided by venue, not geography. Obviously there are regional preferences and different clientele in every venue."

Healthy Living

Concessionaires overwhelmingly agree traditional fare—popcorn, hot dogs, soda and pretzels, for example--continue to make up the majority of sales.

"We still see the lionshare of revenue coming from the traditional items-the 80/20 rule still applies," says Torzon, explaining that 80 percent of sales consist of the mainstream, tried and true concession favorites. Beyond the numbers, how well have the healthier concepts been received—the salad bars, wrap sandwiches, frozen yogurt and fruit items?

"People say one thing and eat another," says Fine Host’s Fischer. "Everyone talks healthy, but french fries are still a huge seller."

Armstrong agrees: "Healthy alternatives don’t do well, even at family venues. In fact, ‘fun’ food sales have gone up, and they are hardly characterized as healthy foods. At one of our waterparks in New Hampshire, fried dough is the number one seller."

Armstrong says he notices at educational facilities, like aquariums and museums, the percentage of health conscious products sold are higher than other venues. "Because of the different clientele, we sell more healthy alternatives—I think if they are there to learn, their eating habits reflect a more educated, healthy choice," says Armstrong.

Even items that are patterned after their full-calorie counterparts fare relatively poorly in most concessions operations.

"We thought frozen yogurt was going to be the next big trend, but people still prefer and buy ice cream," says Torzon.

Overall, the consensus seems to be that if a family or individual is at a recreational venue, concert, movie, or game, their health concerns wane, and they decide to live it up at the concession stand.

However, Fischer points out that there are some fans that wouldn’t buy concessions if there weren’t items like turkey hot dogs, salads and bottled water on the menu.

"Bottled water sales are escalating far beyond anything we imagined, but our main profits still come from the staples, like popcorn and soda," says Armstrong.

Variety is the key to please the choosiest customers.

"If we didn't provide alternative products, we would be criticized for not paying attention to the customer," says Volume Services America’s Torzon.

Turner of Sodexho Marriott says his data from focus groups and surveys has found healthy eating and purchasing habits can be predicted based on economic status, as well as gender. Women tend to make healthier purchases for themselves and their children, and season ticket holders, with more disposable income than a typical fan, may be willing to try something different and healthy.

"We have found in suites at stadiums and ballparks, low-fat offerings are more requested than three or five years ago," says Turner. "Items like salads with basil vinaigrette dressing, pastas and baked potatoes with toppings do quite well in suites and with more affluent customers."

Something old and something new

Concessionaires are always attempting to find the right blend to please their customers, and strive to meet their demands by having old standbys and new, trendier items on their menu.

Turner says the successes of stands that are aesthetically pleasing, besides just serving tasty products, do well. "We are finding the customer wants to be entertained from their concessionaire and vendor—they want more than just sustenance," says Turner. He explained vendors spinning cotton candy, wraps being assembled, and vegetables sautéing, is all part of the show for the customer. He says a good number of customers are willing to pay a little extra for alternative concessions items, like caffeinated water, sushi, hot roasted pralines or frozen lemonade drinks.

"We are also finding if the quality is there, people are willing to spend a little more on items; people will pay more to treat themselves," says Turner.

Concessionaires have found the right menu mix can make all the difference to the bottom line and to customers’ satisfaction levels.

"We are constantly learning from our customers and finding the right niche," says Boston Concession's Armstrong. "If we don't have what they want, they will go somewhere else."