Wowing your customers and employees is still the best way to increase revenues and keep quality workers, according to this year’s slate of speakers during the 2000 annual convention’s business sessions. From a panel of industry veterans to a retailing expert to a management guru to a concessions aficionado, the speakers met an attentive audience and provided them with practical, useful information to apply back at their operations and companies.
The following are excerpts from the featured convention speakers.
Non-traditional revenues
"We are in the entertainment business and food is an essential part of the experience."
To kick off this year’s business session programming, panel moderator Chris Bigelow challenged all of the attendees to think of their operations as more than just a place to sell food. "The job of a concessionaire is tough, but we have to realize it is no longer just a business at a stand," says Bigelow. "We want to extend the day, to get customers to come early, stay later and spend more money." The panel discussion "Building Non-Event Sales/Increasing Non-Traditional Revenue," featured presentations from industry experts about their operational experiences.
Bill Borger, director of partnership marketing at Busch Entertainment, was the first panelist to share his experiences. One of the largest theme park companies in the world, Busch Entertainment hosts 20 million visitors a year and boasts three of the top four roller coasters in the world at their theme parks. Borger explained the overriding goal of the company is to reach the changing demographics of the leisure American.
"There is more competition for special events and more places people can go for entertainment experiences," says Borger. "Guests have become jaded because they’ve seen a lot."
Borger explained that Busch Entertainment always strives to expand the use of their current attractions to create unique events. For example, at SeaWorld Orlando, 50-100 guests can have drinks in the dolphin viewing area at a private reception, and in the Wild Arctic attraction, a meeting planner can book a "Pancakes with Polar Bears" breakfast event.
Many facilities have to make the most of the evening and early morning hours, the only time the facility isn’t open to the ticket-paying public, so more and more are booking corporate, church, civic and youth groups, among others.
"We are seeing more groups as more companies can afford to have corporate special events," says Borger.
Group sales are an essential part of many facilities’ bottom line, according to Mike Phillips, president of Excel Foodservices, a regional foodservice contractor serving Maryland, Virginia and South Carolina.
"In lieu of a winning team, a blockbuster movie or a new roller coaster, group sales is the easiest way to build revenues and attendance for your facility," says Phillips. "Be creative and tie into your facility."
Phillips gave a few examples, like birthday parties at a minor league ballpark or a movie theatre. By providing convenience for parents by having everything included, like food, event ticket, souvenirs and mascot visits, kids and parents will have a great time. "Make it memorable for the children, because they will go to school and tell their friends," says Phillips. He advises to keep the menu simple. The opportunities for add-ons will help add variety and boost revenue, like beer and wine for the parents, a birthday cake, or photo opportunities.
Signage is also a key element in promoting the event. It will not only recognize the group, but draw interest from other guests who may want to book an event in the future. Phillips advises to, "make it convenient and they will come back."
Tom Keon, president and co-owner of Ridgewells Catering, the largest catering company on the East Coast, presented an alternative viewpoint. Predominately known for catering high-end diplomatic events in the Washington D.C. area, Ridgewells recently acquired the suite catering contract at FedEx Field, home of the National Football League’s Washington Redskins. A continuing trend at sports venues is multiple vendors—one for merchandise, one for concessions and one for catering. With his concessions background, Keon felt prepared to lead his company into a venture it had never tried before.
"Clients in the suites are the same clients we have in the board rooms and social events around Washington," said Keon. "We took a business application that we had and applied it to a non-traditional venue for us."
Thus far the suite catering venture for Ridgewells has been successful; per cap spending tripled when Ridgewells took over foodservice in the 208 suites and 2 loge areas.
In an increasingly saturated market, the St. Louis Zoo continues to serve up concessions to 3.2 million visitors 363 days a year on their 90-acre campus. Mary Ann Scott, director of foodservice at the zoo, highlighted the popular special events that help build revenue in the off season, which is September through February.
A popular fall event is the Ottertoberfest, patterned after a traditional German festival. Held at a slower trafficked area in the zoo, "the event helps increase per caps where traditionally we don’t have a high volume of sales," says Scott. Her team erects a tent, sells beer and brats and encourages patrons to dance along to a German oom-pa-pa band.
Another popular event is the Break fast with Santa or the Easter Bunny. Kids and parents can get their pictures taken, visit with elves, Rudolph or bunnies and enjoy a full service, upscale menu complete with china and linen, prepared by the zoo’s in-house chef. The event is memorable for the kids because they get to take their pictures and holiday bucket treat home.
Though not commonly thought of as a venue for opportunities for nontraditional revenue, movie theatres are getting in on the act. Page Thompson, General Cinema’s senior vice president, explained that café concepts provide expanded revenue opportunities for movie theatres, as well as hosting corporate events. "We have to aggressively pursue group sales during the week," says Thompson.
"With the number of screens almost doubling in the past 10 years, it is very difficult to differentiate one theatre from another," says Thompson. "We have to provide a reason for someone to get off the couch."
General Cinema’s Premium Cinema concept seeks to boost revenue by encouraging people to have dinner and see a movie all in one place. The first Premium Cinema opened in Lombard, Ill., a suburb of Chicago, in 1998 to rave reviews, featuring 70 leather chairs in the theatre with extra legroom and seatside tables, a full-service bistro, valet parking, coat check and over-21 policy. "The most popular aspect is that there are no children admitted," says Thompson. "This is an experience for a sophisticated moviegoer."
General Cinemas experienced many challenges in opening the concept, the first being that their theatre managers had no restaurant experience, a skill needed to be acquired quickly to manage a premium cinema.
While the three existing Premium Cinemas are doing well, Thompson emphasized the importance of remembering to take care of your primary business—traditional concessions.
"Our ICEE sales are still five times of our profit from our restaurants," says Thompson. "Traditional concession products are still the most important part of our business."
R is for Retention
"There are three mistakes that most companies make and your company is making right now," says Dr. Judith Segal. "You accept the unacceptable, treat all the people the same regardless of performance, and keep warm bodies for lack of good employees."
Heads nodded in agreement from the very start of Segal’s presentation, "Staff Retention: How to Keep Good People." A consultant, trainer and mediator who specializes in team and relationship building, Segal encouraged group interaction and the exchange of ideas during her presentation, and was peppered with questions from the audience about how to improve their own operations.
Segal started by examining the "new" workplace which employees have grown accustomed to and expect—people want a fun place to work with amenities. "More and more workplaces have nap rooms, hair salons, dry cleaners and elder care," says Segal. "Workers see themselves as free agents and mobile."
Segal stressed the importance of knowing who the employees are that you are trying to retain. Their age and values differ and their motivations differ, therefore employers must address the specific needs of these employees. For example, a "mature," or worker born 1910-1945 values hard work and authority and in the workplace wants a chance to re-tool or try new things. A Gen Xer is more accustomed to flexibility and adaptability and needs immediate feedback and to be valued and reinforced for what they do now.
"To retain employees, you must understand the culture of people who work for you," says Segal, explaining the different expectations of physical proximity, language, eye contact and gender roles.
Segal then discussed the importance of team building to maintain a solid workforce. "If you want team behavior, look at the compensation aspect and give consistent recognition," advises Segal. "Get the behavior and then reinforce it."
Going hand in hand with team building is creating an environment that makes people want to stay, and to do that, employers must determine their workers’ individual commitment level and their interaction satisfaction level. For example, a worker with high action satisfaction and low interaction satisfaction (categorized as stepping stone) doesn’t care about bonding or forming relationships as much as acquiring as much knowledge as they can and using the job to move on to their next job.
Above all, retention means: R-Reinforce the behavior quickly; E-Eliminate the
negatives; T-Train for continual learning; E-Exercise creative compensation,
recognition, benefits, salary; N-Nip conflict in the bud; T-Talk to them, turn
to them; I-Invest in the careers and future plans; O-Offer promotions to the
best and make them meaningful; N-Notify them of the good, bad and ugly and tell
them the truth. "Remember to treat everyone fairly, but deal with people
differently," says Segal.