A company has a large office building with 3,500 employees. Why would the company make the decision to have food services offered within the building rather than NOT to offer these services? Why would the company make the decision to outsource the operati

Sports and Re creational Fbodservices Part of the Leisure Seruice

I t

Securis concerns Limit reJieshments that can be brought into a sporting event.

After studying this chapter you will be able to:

t. Discuss the scope of the sports and recreational foodservices segment.

2. Explain the organization of a typical sports and recreation operation.

3. Review concession menus and revenue considerations.

4. Note factors that affect conqgssion sales at a sporting event.

5. Outline concession management practices on event day.

6. Discuss catering operations in sports and recreational feeding.

7. Identify challenges confronting sports and recreational foodservices o p e r a t i o n s .

This chapter was authored bv Guy D. Procopio, Concessions

sion of Housing and Foodserr,'ices, Michigan State University

Market I I I I I T I I I I - T I I I T I I

Manager, MSU Concessions, Divi-

E a s t L a n s i n g , M i c h i g a n .

4 5 4

{.x{i\F'il1:R ;5 Sports and Recreational Foodservices: Part of the Leisure Service Market 4Ss

The biggest collegiate football game in the state every year: Michigan State University against the University of Michigan. This year the game will be played on Michigan State's campus in East Lansing. The game will be a sellout (75,000 fans), regardless of the win or loss record of either team. After all, it is a tradition, "bragging rights" for the next 12 months are at stake, and the fans will have a great time even if the weather does not cooperate!

You are the concessions manager in the University's Division of Housing and Foodser- vices. Among your responsibilities are the food and beverage concessions for all sporting events held on campus.

Is it really "work" when you are managing the food and beverage operations at a stadium where professional or collegiate football, baseball, basketball, hockey, and/or another sport is plaved? Would a person who likes horse rac- ing and/or auto racing enjoy working in a facility where racin-s is the main at- traction? Almost everyone likes some t5'pe of music; what about a job u,here the "rvho's who" of professional musicians and star performers ft om all seg- ments of the entertainment world attract fans for their concerts and other productions?

These types of professional positions exist in the sports and recreational foodser-vice segment of the hospitality industry. However, just as there is much more to hotel management than a beautiful lobb5r atrium and the world of restaurants is more than dining rooms with white table cloths, so are sports and recreational foodser-vices more than

'just what fans see" when

they attend an attraction or event. Behind the scenes of the stadiums, coliseums, theaters, and other venues

are food and beverage managers working in sports and recreational foodser- vice (also called concessions) operations. Management positions in these businesses are challenging, tough, and rervarding. They offer opportunities that those aspiring to professional careers in the hospitality industry should know about. This is the purpose of this chapter.

AtH- Affiffi{-}T SP*N{TS AhIffi RHflRHITT}ffiN Fffiff{}SHRVXCffiS

Opportunities to provide foodser-vices are present almost anywhere that large numbers of people convene for sports or other recreational purposes. They exist because people increasingly have more leisure time and are seeking en- joyable ways to spend this time. Recreation is one popular alternative, and the need for foodservices increases as more persons have more leisure time.

There are numerous ways to categorize the recreational foodservices industry. A common method focuses on the locations where the food and beverage services are offered:

Assume that yo-u are a very experienced professional and that you effectively manage all resources that are within your control. What are three situations that can occur before or during the game, in spite of your best manage- ment procedures, that can negatively affect rev- enue generation and/or fan pleasure? What, if anything, can you do before and/or after these situations arise?

As you read this chapter, think about answers to these questions and then get feedback from the real world at the end of the chapter.

oBrEcTrvE r Discuss the scope of the sports and recreational food- services segment.

! c : i s e . i r * " : I i n r r . p e r s o n a l t i m e away from work or other re- s p o n s i b i l i t i e s t o d o a s o n e w i s h e s

r * E r * a t i * : r r a c t i v i t i e s t h a t r e - v i t a l i z e o n e ' s m i n d a n d b o d y away from work

I - r ' r i ( ' c i t i < t l t - t i l t ) n i l s t ' l ' r ' i C t " \ int,lust.r1, foodservices of- f e r e d f l o r p e r s o n s e n i o y i n g r e c r e a t i o n a l p u r s u i t s ; a l s o called rec t'bods

S*#lllli:i,-

h

456 $)i- ItY 5 Recreation and Leisure Orsanizations

Eiffi*

. n I . - - 6 . ' !

l i , i r . i i i . i i l r r . o u t d o o r r e c f e - a t i o n a l f a c i l i t i e s

'

r..t li15*i-rr'{r5 indoor recre- a t i o n a l l a c i l i t i e s ; a l s o c a l l e d arenas

'

".'r+ Stadiums and coliseums (are-

nas). Stadiums are outdoor recreational facilities typically cgnstructed for sporting events that, on occasion, feature other large entertainment events. Coliseums (also called arenas) feature indoor seating and are very appropriate not only for some types of sports, but for numerous other types of rec- reation and entertainment activities. Fairs and festivals. Large events such as state fairs and smaller events such as agriculture- related exhibitions are exam- ples of activities that attract large numbers of people for sometimes several weeks at a time.

;*t+:*r

Fans purchase snacks from hawkers without leaving their stadium seats.

Theater operatiorzs. Motion picture theaters and complexes offer lobby concession operations that generate a very significant percentage of the total revenues that accme to these operations. Other recreational outlets. Automobile and horse racing tracks, summer music festivals, indoor and outdoor seasonal events sponsored by com- munities around the country and national and state parks, zoos, muse- ums, and aquariums are other examples of events or locations rvhere food and beverage operations can be profitably offered.

oBtEcTrvE 2 Explain the organiza- tion of a typical sports and recreation operation.

While there are numerous exceptions, typically larger-volume and vear- round venues tend to be operated by contract management companies. Lower-volume and short-term operations may be managed bv contract man- agement companies, but are often managed by the facilitv's operators. (The

length or term of contracts that sports and recreational foodser-vice clients ne- gotiate with management companies is frequently longer in this segment than in others. Contracts of 10 or more years, with extensions beyond that point, are possible, especially when the management company invests in up-front capital improvement projects. )

ffi S&.ffi A,}$IAATTSNAL STKU CTURH

Exhibit 25.1 shows the organrzation of a spor[s and recreation organization in a laTge stadium. The food and beverage director for the stadium reporls to the sta- dium's general manager. He or she may be an employee of the stadium (if it is self- operated) ol alternatively, an employee of a contract management company. In turn, the food and beverage manager superwises the work of a business managel a catering manage4 a human resources manage4 and a concessions manager.

The business manaser's duties are, in manv wavs, similar to those of his or her counterparts in o"ther segments of the hospitality industry. These in- clude responsibility for accounts receivable and payable, development and analysis of financial statements, and payroll management.

Some stadiums offer sit-dorvn foodservices in restaurants and/or bars. These and/or other locations may also offer foodservices in stadium box seat locations. The catering manager supervises a team of food production (cater- ing chef ) and outlet managers (for food and beverage service).

{"lt{AFll'[:$d J5 Sports and Recreational Foodservices: Part of the Leisure Service Market 4ST

ffi I

ffi

I

"ffi:in ffi ll

#s,fi:"J ffi

f : . K F { l S } 1 " 3 S . { Organization of Sports and Recreation Foodservices in a Large Stadium

Now let's look more closely at the superwisory responsibilities of the con- cessions manager. Positions supervised include the following:

o Operations manager. This individual is responsible for food and beverage sales in permanent and/or temporarry food and beverage stands located around the stadium, which is typically divided into areas called con- courses. A concourse stand manager directs the work of concession stand managers within his or her concourse.

o Vending manager. Persons in this position are responsible for selling (vending) food and beverage products to event attendees who are seated in the stadium during the event. Vending concourse supervisors manage the work of vendors (hawkers) who move through assigned areas in the stadium selling (hawking) their products.

Operations Manager

I I I

Concourse Stand

Manager

I I

Concession Stand

Manager

V e n d i n g Manager

I I

Vending Concourse Supervisor

I I

Vendors (Hawkers)

Souvenir Manager

I I I Souvenir I Warehousing

I Superuisor

I

I I Noveltyr- Stand

Vendors

Accounting {Cash Room)

Manager

ir;rr.t k*rs isports and l ' r ' r r r " , t l i { r t t . t l l i r t t i l \ 6 , ' t r i , q ' " . ;

e m p l o y e e s i n t h e c o n c e s s i o n s d e p a r t m e n t o f a s p o r t s a n d r e c r e a t i o n a l f o o d s e r v i c e s v e n u e t h a t m o v e t h r o u g h a n a s s i g n e d a r e a o f a s t a d i u m s e l l i n g ( h a w k i n g ) t h e i r p r o d u c t s

Food and beverages are serued in comfortable slgt boxes.

458 PAI{T" 5 Recreation and Leisure Ors.anizations

i_ w&&& ps_s&s-_xtf& srye&,ffisggsgruE"ffips? - Sports and recreational foodservi." op.rutions typically need many entry-level employ- ees on an infrequent basis. Irregular work schedules and work shifts of perhaps only several hours for several days a month do not appeal to most persons in the work force. So where do these employees come from?

Many sports and recreational foodservice operators in all types of publicly and privately operated venues utilize community organizations whose members volunteer for work at these events as a fund-raising activity for their organization. For example, a community sewice or church-related group may be assigned a specific concession stand. (In many areas, there is a long waiting list for organizations desiring to work these concession stands.) One member of this volunteer group serves as the concession stand manager and schedules his or her peers to work when the stand is in operation. Typically, volunteer groups receive a specified percentage of the adjusted revenues gen- erated by the concession stand.

Can volunteer groups really by relied on to staff concession booths on a regular basis? The answer is yes, and the financial rewards, along with the waiting list to re- place nonperforming groups, serve as incentives for reliable and responsible service.

;*ei jusl,*d N"L1r"fi: n rir":5 i:;pi :i'i :;

ui fi tl rE:{. r(:;,1 l ic.:ir ;i 1 {r:*il:"t: l' !ir"-i":::ii gross revenues less

s a l e s t a x e s

*F{HflK XT #{^"}T"Y

C o u l d a l a d y i n h e r l a t e B O s b e a b a r t e n d e r a t B u s c h S t a - d i u m ( t h e h o m e o f t h e S a i n t L o u i s C a r d i n a l s ) ? H o w a b o u t a h a w k e r w h o i s B 0 y e a r s o l d ? These two staff members w o r k f o r S p o r t s e r v i c e , a m a n - a g e m e n t c o m p a n y w i t h e x t e n - s i v e c r e d e n t i a l s i n s o o r t s a n d r e c r e a t i o n a l f o o d s e r v i c e s . I n - t e r e s t i n g p o i n t : t h e c o m p a n y ' s p r e s i d e n t i s i n h i s 3 9 t h y e a r w i t h t h e o r g a n i z a t i o n , a n d h i s m o t h e r s t i l l s e l l s b r a t w u r s t s a t M i l l e r P a r k i n M i l w a u k e e !

Y o u ' l l e n j o y l o o k i n g a t t h i s company's website if you want t o l e a r n m o r e a b o u t s o o r t s a n d r e c r e a t i o n a l f o o d s e r - v i c e s . G o t o w w w . d e l a w a r e n o r t h . c o m / AboutD N C/Sportse rviceasp.

Source: Gregg Cebrzynski. Humor, courtesy the goal for long time stadium servers. Retrieved November 29, 2005, from w w w . n r n . c o m / o n s i t e / .

Souvenir nmnager. Stadiums typically feature souvenirs at novelty stands located around the stadium that sell retail logo merchandise to atten- dees. These stands may be self-operated by the stadium. Frequently, hourever, souvenir sales are contracted to others. (This is the reason lr,hy, in Exhibit 25.1, there is a souvenir warehousing supen,isor; food and beverage items in storage owned by the stadium or contract manage- ment company would not be comingled u'ith inventory items orvned bv the souvenir vendor.) The souvenir manager manages a souvenir u'are- housing supervisor and novelty stand vendors. Warehouse and distribution ntanager Persons in this position are respon- sible to move food and beverage products from centralized areas r,vhere they are received and stored to concession stands and other locations where they are sold. Accounting (cash room) nTanager. Events attracting tens of thousands of spectators generate very large sums of money that must be carefully ac- counted for from the time of collection to deposit to follow-up audits. This task is among the responsibilities of the accounting (cash room)

Watching the game while eating and drinking

ili{AFT'f:H 25 Sports and Recreational Foodservices: Part of the Leisure

manager. The division of duties suggested in Exhibit 25.1 is important for control: the operations manager handles issued products, but not money. The cash room manager handles money, but not products. The warehouse manager handles products before they are issued. The busi- ness manager reconciles product sales (operations manager) and money (cash room manager).

A CLtrSE LOSK AT MENI}S AruM PR{CTNT

When one thinks of menus at sports and recreational foodservice outlets, items such as hot dogs, popcorn, soft drinks, and beer are often at the top of the list. These are popular items and, not surprisingly, generate very high contribution margins

Most items sold in concession operations can be classified into four types:

o Main entr6e (for example, hot dogs and pizza) o Salty snacks (for example, popcorn and peanuts) o Beverages (hot, cold, and alcoholic) o Sweets (for example, candy bars)

Nonalcoholic beverages may generate as much as 50 to 60 percent of gross revenues.

The food and beverage items sold at events have several things in com- mon. First, there are few if any, significant production requirements. Some items (for example, hot dogs and cheese for nachos) need onlv be heated; pop- corn can be quickly prepared in appropriate machines. (In large stadium oper- ations, huge machines in a centralized location may prepare this product. It is then distributed in bulk to concession stands for individual por-tioning into bags or boxes.) Other items (cold and hot drinks) need only to be dispensed; lit- tle or no production skill is required for these items and, therefore, minimal training in food and beverage production is required. Another advantage: little equipment, along with space to place the equipment, is necessary. Also, little time for food and bever- age production is needed. This is im- porlant because of the significant quantities of food and beverage products that are typically sold dur- ing very short time periods at an event.

Concession and stand ser-vices (vending) items are almost always sold for cash. The need to make change during a sales- {ransaction significantly slows service. There- fore, prices are typically in dollars (for example, one hot dog for $3.00) and in quarter- or half-dollar (for example, one soft -drink is $2.50) i n c r e m e n t s .

Managers responsible for sports and recreational feeding operations typically develop revenue goals on the basis of estimated attendance at events. (As will be discussed later.

Service Market 459

oBIECTTVE 3 Review concession menus and revenue considerations.

c o n f r i h u t i o n m a r g i n { s p O r t s ; r n d r e c r e r a t i o n a l f o o d s e r ' rrices) total revenue less all c h a r g e a b l e c o s t s ; a l s o c a l l e d net revenue

Refreshments keep thefans happy.

46o- PAttT 5 Recreation and Leisure Organizations

attendance is influenced by weather, time of event, and the economy.) If, for

example, 60,000 people typically attend a campus football game and if, histor- ically, concessions revenue has approximated $250,000, the per capita rev-

e n u e o f $ a . 1 7 ( $ 2 5 0 , 0 0 0 + 6 0 , 0 0 0 p e r s o n s ) c a n b e e s t i m a t e d . T h i s b e n c h m a r k can be adjusted by, for example, calculations to ieflect suggestive selling tech- niques, facility modifications, and menu price increases to arrive at estimated revenues for future errents. Once revenue is known, asSociated product costs

and other costs can be calculated and compared to budget goals. (Per capita

concessions revenues in pro sport events such as the World Series or Super Bowl can be $7.00 to $10.00 per game, compared to approximately $5.00 in collegiate football and basketball events.)

FACT{IXAS AFFffiffT"Iruffi #ffF\$CKSSX#N SALHS

pe"r capil;r per person, such as the amount of revenue (or expense) per person

pailrt'*{' s;*}* {13(}5} t*rmill;t} a computer system that con- tains its own input and output components and, perhaps, some memory capacity, but without a central processing unit

oBIECTTVE. 4 Note factors that affect concession sales at a sporting event.

Numerous factors influence the volume of revenues and type of sales at a sporting event.

; A N $ I { T f f i f f i f f i s T [ r u f f i F A c T Y

As a rule of thumb, concession operations managers plan concession stand work sta- tions so that 75 percent of the items sold will be within reaching distance of the em- ployee collecting customer payment (for example, cold beverages, hot dogs, and popcorn). Time is important; it cannot be wasted, as it would be if employees had to walk even a short distance to retrieve an item ordered by a customer.

i - - - - F { W r # - H s s 4 - # " r " $ p . F K f $ s r ' How much money should a concession manager expect to collect from a concession stand at the end of an event? Many concession stands (especially those in high-volume, frequent-event stadiums, which can afford hardware and wiring costs), have point-of- sale (POS) terminals (cash register systems.) This equipment makes transactions more accurate, speeds seryice, and assists with after-event reconciliation. Howeve4 even when these machines are available, the service of large numbers of people in very short time periods can easily lead to mistakes and theft of cash.

A common method of revenue control in concessions operations involves the counting of product eontainers. For example, assume 50ffi2-ounce soft drink cups are available in the concession stand at the beginning of the event. Then, if 100 are available at the end of the event,'400 cups have been used (500 - 100 = 400). This example is oversimplified because adjustments (such as additional packaging brought to the stand during the event) and waste must also be factored into the calculations. If 32-ounce soft drinks are sold for $3-00, these 400 "missing" soft drink cups represent $1,200 in rev- enues (400 cups at $3.00 each = $1,200.00). The same process is utilized to determine the quantity of all other food and beverage products (and there may be as many as 40 different items) that have been sold during the event. Then the total quantity of revenues generated (and that must be accounted for at the end of the event) can be assessed.

Sports and Recreational Foodservices: Part of the Leisure Service Market 461

Weaf;her

Weather has an obvious impact on stadium (outdoor) games, but it also affects the number of fans at- tending coliseum or arena (indoor) games. For example, concessions managers in colleges and universi- ties in the northeastern and mid- western United States typically think about three "seasons" in a football season of just several months: warm, in-between, and cold. Not surprisingly, sales corre- late with these temperatures: warm season = cold beverages; in-between season = firore food; cold season = hot beverage sales. When the weather turns unexpectedly bad, food and beverase directors be- come unhappy just as the fans do; however, it is for a different reason: there are more unanticipated sales of logo clothing and merchandise (which have a lower net revenue) and lower sales of beverages (which have a higher net revenue).

T$xme q:f, ffimm*

\picallv, the earlier the better. Unfoftunately, from the viern of concession man- agers, television and athletic conference contracts dictate game times.

Tearmsu Saxcc#ss

The history and tradition of the two competing teams, the home team's won or loss record for the current year, and the reputation of the opponent are im- portant factors in attendance.

"fr-.'*Io

rd 6r rbif ffsr*i-\

..f !rS$ss.#-'

;"^r " . .-.--s-*.=*.

ffi "s=*.

Skrers need food and beverage setyices.

I STAN$ SHRVTCH VHTSX}{}ffi.S Affi,H xN m{JsxNmss F{}ffi TF{m&{sffiL\rffisT

In many sports and recreational foodservice operations, persons selling food and bever- age products to fans seated throughout the stadir:m are in business for themselves! Throughout the event, these vendors (also called hawkers) go to an assigned central lo- cation to obtain additional quantities of the products they are selling. There are two basic methods for paying the hawkers. They might, for example, purchase 50 bags of popcorn paying $1.50 for each bag. They then sell the bags of popcorn to the spectators for $2.00, keepipg the profit of $0.50 per bag for themselves. When this process is used, vending managers can control cash revenues at the centralized pickup location in the same way that they do in concession locations: by accounting for product containers.

In a second popular method, the amount of product supplied to hawkers is tracked; at the end of the event they receive a percentage of the revenue generated by the amount of product sold.

462 F]:\Itl' 5 Recreation and Leisure Organizations

Basketball fans anticipate the beginning of the event.

ffiemruslrffiy

Individuals purchase personal tickets to sporting events with their discre-

tionary income; business purchases are treated as an entertainment or mar-

keting expense. Money spent for both of these purposes is reduced when

there are slowdowns in the economv.

#fi}t*r Fmctarrs

Season schedule (for example, the number of consecutive home games) can

sometimes encourage or hinder attendance. Fans may not go to games sev-

eral ."veeks consecutively; tickets may be given to others r,r'hose per capita

spending is different from that of season regulars. Season ticket holders have a significant influence on concessions rev-

enues. For example, persons purchasing these tickets for collegiate events are typically individuals paying with personal funds. By contrast, corporations purchase large numbers of season tickets for professional sports. These fans

are not, then, spending out-of-pocket funds and typically spend more.

r..'..""'"'."-- #Cruffissfclrus-rutnzuAffiHns n'nust fH

- -- IIt Lq",il\i +".n sFtLti\|3 iv[Ja:\[ftt.rE nul it'l"us r t}"a r

i - 3-&S$$EI-tK-l}{ 4 &P&$TI-W FHvlSg$K$ffi3- - -i

Imagine that you arga concessions manager for a majorrrniversity. Seventy percent of your annual concession revenue is generated from football games. There are only six home games in the season; there are only three hours of peak retail time when stands are open for business during each game. In other words, 70 percent of your annual rev- enue will be generated in only 18 retail hours!

Another interesting statistic: 90 percent of concession revenues from a football game are generated from pregame through the end of half-time. Imagine that you are the concessions manager and that the home team is losing by many points prior to half- time. Many spectators will leave before and/or at half-time. Product costs will be exces- sive, revenues will be down, and the "clock is ticking" for the remainder of football minutes in the calendar year.

{";* f:\F'}"t.iR 25 Sports and Recreational Foodservices: Part of the Leisure Service Market 463

EIIANAffi[Tqffi tr*NCH$SI#N$ ffN NVHNT H}AY

The day or night of the big event has finally arrived! Let's see what happens behind the scenes before and after the fans buy the conces- sion products.

The best concession stands are those that are independent produc- tion centers. They do not rely on external food and beverage produc- tion, have adequate equipment and storage, and are self-contained to meet their highest peak sales re- quirements. (Popcorn may be popped on the day of the event and trans- ported in bulk for individual bug- ging or boxing at the concession

Nighuimefootball On a cold evening, more coffee and fewer soJt drinks are consumed.

oBIECTTVE 5 Outline concession management practices on event day.

l ' ! ; l i l i r ' \ ' i s i : r . r i ' i l ; r r ' : t j I { ' r l r ' c } t i i i t t . i I f r : r l i i s r " ' t ' t ' i r e ' S )

a space used to portion prepared food for later service to customers, for example, preportioned hamburger p a t t i e s m a y b e h e a t e d o n a grill in a pantry area

stands.) With few exceptions, then, products need only be heated (hot dogs and pretzels, for example), dispensed (cold and hot drinks, for example), or sold in prepackaged containers (candy bars, potato chips, and peanuts, for example).

Modern sports and recreational facilities are designed with significant attention paid to the needs of concession operators. Space for rvarehousing, vending pickup, concession stand space, nonpublic elevators for distribution, and private access ways are frequently designed into new facilities u,hen thev are constmcted. Full-ser"vice kitchens to support food production needs for luxury-level suites and club-level seating are built in conr,enient areas, and pantries to serve other locations are also constructed.

Concession stands are stocked before events (sometimes for several events if space permits), but during-event distribution is sometimes necessary as well. Distribution includes the food and beverage products and the dispos- able supplies (soda cups and popcorn boxes, for example) that will be needed (if space within the stands is ample for this volume of items).

wE{# ffiEtS pruXp }VI{AT'? - -

Food and beverage managers typically make arrangements of several tlpes for selling food and beverage items during events:

Concessiexs receive a percentage of revenues*A branded retailer of ice creams or sandwiches, for example, may pay a percentage of revenues that it generates to the concessions operation in return for the space and opportunity to sell its own prod- ucts during the game. Concessions may give a percentage of revenues. Many concessions operations utilizg volunteer groups to staff concession stands. In return, the group receives a percentage (typically 10 to 15 percent) of the adjusted revenue generated. Concessions may sell food and beverage products to independent operators. Ven- dors (hawkers) pay for products at a vending stand and then sell the product at a higher price to spectators in the stands (the excess revenue belongs to the vendors) or they may receive a commission on sales.

464 PAIt.'i' 5 Recreation and Leisure Organizations

Concessions managers are con- cerned about theft of revenue; a stand in a popular location can gen- erate several thousands of dollars (or moie) in sales in a very short pe- riod of time. Therefore, revenues may be picked up and transported to the money counting room at least three times: when the event begins, during the event, and at the end of the event.

;usr" X-XKH A RffiSY&{JRAg$TT,

Condimen ts cannot be forgotten.

Catering (the production of food and beverages for sale to groups of people) is increasingly popular in concession operations. Examples range from sit-down restaurants in a stadium to the provision of meals to fans in stadium and coliseum

boxes and suites. Guests in sit-down operations may order from menus with a relatively u'ide range of menu items. Menus available in boxes and suites may be of more limited varietli but still offer "something lor everyone." Ser- vice in these remote locations ranges from preordered foods that are prepor- tioned for delivery to the areas to buffet lines 'rl,ith "all vou care to eat" selections available before (and often during) the event. Some items (for ex- ample, soft drinks) may be stocked in the stadium bor or suite, and the

charge is based on the volume of depleted inventory. Buffets mai' be supple- mented with short-order food production, pasta bars, and a range of desserts (sometimes presented or ser-ved from rolling dessert carts!). When pre-

ordered menus are used, creative plans, such as a four-game rotating menu (with discount for preordering for the games), are becoming more popular.

ff F{,qLtHru ffi ffi S g fl F{&X-LffiF{ffi KST

Concessions operators have at least one challenge in common with their counterparts in most other segments of the hospitality industry:

o Frequent difficultt, in securing the necessatry labor resources. Like other segments, labor shortages are frequently a problem. This chapter has discussed one creative solution fiIfilize nonprofit organrzations desiring fund-raising opportunities). However, in times of low unemployment rates (fewer people are looking for jobs), positions in this and all other segments of the hospitality industry may go unfilled.

Other challenges confronting sports and recreational foodser-vices in- clude the followins:

oBIECTTVE 6 Discuss catering operations in sports and recreational feeding.

r,;ltr':t"i*q {s NXii'l* ;i ilrl

r"*c e"e;l li #niti {i:otl s*t'v l{:*ri } the production of food and

beverages for sale to groups o f p e o p l e

oBIECTTVE 7 Identify challenges confronting sports and recreational foodser- vices operations.

' Y w

o

L.I[;\F"l'f::'${. ?5 Sports and Recreational Foodservices: Part of the Leisure Service Market 465

Critical need for interaction with others. For example, in college and uni- versity sports, interaction betweeh the athletic department and the foodservice division becomes necessary. In professional sports and for concert and other entertainment events, concerns of the congessions department have become more important because of the possibility of significant revenue generation. Need to manage variables that are ofien beltond the control of the conces- sions manager. These challenges have always been part of the conces- sions business and will likely continue to be so in the future. Numerous variables have been discussed in this chapter. Increasing use of' technologlt. Concessions managers increasingly use technology to expedite forecasting, ordering, and reconciliation and to manage inventories and determine revenues. Still to come, however, are creative ways to reduce the guesswork associated with making longer- term decisions about revenue estimates. Countering public perceptions about the price and value of concession purchases. Spectator concerns about the selling prices of concession products are not unusual. TheSz increase when safetv and security con- cerns place limits on the items (frequently none!) that spectators can bring into an event. Concession profits (net revenue) can be high (30 to 55 percent of an item's selling price may remain when all allocated expenses are addressed). However, these monies are typically split be- tr,veen the concessions operations and athletic department (in a self- operated college or universitv program) or between concessions and the stadium in other tvpes of events that depend on concession rev- e n u e s t o s u p p o r t t h e o p e r a t i o n s . W h e n a c o n t r a c t m a n a g e m e n t c o m - p a n y o p e r a t e s c o n c e s s i o n s , f e e s f o r i t s s e r v i c e s m u s t b e p a i d according to contract (immediately after the game, monthll', or qLlar- terl-v, for example).

Creative concessions managers are addressing the price and value challenge by offering combo units (several menu items packaged to- gether at a selling price less than the sum of their individual prices). This tactic is in common use by the quick-service segment as well. An- other approach: sell larger product packages (at a lower cost per ounce or fluid ounce than when smaller-sized packages are purchased).

r * i n i ) { . } i i n i t s a c o m b i n a t r o n m e a l i n u , h i c h s e r , e r a l m e n u i t e m s a r e p a c k a g e d t o g e t h e r a t a s e l l i n g p r i c e l e s s t h a n t h e s u m o f t h e i r i n d i v i d u a l p r i c e s

i 16glr# ffpHRAT.Hs fi*Eymnrfitffi snKvxfiHs? ;

Like other seggrents in the hospitality industry tlp*organrzalion of catering services in concession operations can be complicated. For example, a sports and recreational venue may provide all of its own concessions and catering services (self-operated). Alterna- tively, it may provide the concessions and subcontract catering to another organization. Alternatively, it may operate concessions and interact with a contract management com- pany to provide_catering services (or vice versa).

4 6 6 PAIdT' 5 Recreation and Leisure Organizations

1. Discuss the scope of the sports and recre- ational foodservices. Opportunities to provide foodserices exist al- most any where that large numbers of people

convene for sports or recreational purposes. These include stadiums and coliseums (are-

nas), fairs and festivals, theater operations, and other recreational outlets, including au- tomobile and horse racing tracks, summer music festivals, indoor and outdoor seasonal events, national and state parks, zoos, muse- ums, and aquariums.

2. Explain the organization of a typical sports and recreation operation. The food and beverage manager is supervised by u stadium general manager and, in turn, supervises the work of a business manager, a caterin-e manager (responsible for bulk food production), a human resources manager, a concessions manager (rvho is responsible for concessions sales, vending (in-stand) sales, souvenir sales, warehouse distribution, and cash room reconciliations).

3. Review concession menus and revenue considerations. Most menu items sold in concessions opera- tions can be classified as main entrees, salty snacks, beverages, and sweets. Some opera- tions have licenses to sell alcoholic beverages. Selling prices are established at a rate that makes it easy to make change (for example, rounded dollars or $0.25 increments).

4. Note factors that affect concession sales at a sporting event.

Numerous factors affect concession sales, in- cluding weather, fime of game, teams' success, economy, and season schedule.

Outline concession management prac- tices on event day. The best concession stands are independent production centers. Revenue is tracked on the basis of the number of package units (for ex- ample, soft drink cups) sold based on pre- and postevent counts (after adjustments) of pack- age units. Revenues may be picked ,p and transported to the money counting room be- fore, during, and at the end of the event.

Discuss catering operations in sports and recreational feeding. Catering ranges foom sit-down restaurants in a stadium to the provision of meals in sta- dium boxes and suites. Menus range from the offering of a relatively wide range of items to more limited preordered food items. Buffets and even an extensive varietv of desserts can be offered.

Identify challenges confronting sports and recreational foodservice operations. Challenges include the frequent difficultr,'in se- curing necessary labor resources, the critical need for interaction rnrith others, the need tcr manage variables beyond the concessions man- ager's control, increasing use of technolo-qv ar-rd the management of public perceptions about the price and value of concession purchases.

5 .

6 .

'7 I .

Discuss the following questions.

1 . What are some ways that managing food and beverage products and labor in sports and recre- ational foodserwice operations are the same as in hotel and restaurant foodservices? What are some ways in which they are different? What potential problems can arise as conces- sions managers account for stand revenues

utilizing the package unit approach discussed in the chapter?

3. If you were asked to design the food produc- tion and service aspects of a large sports and recreational facility, what are some of the major concerns you would address and horv would you address them?

2.

{"1$ {:\P'{.'}:tq" 25 Sports and Recreational Foodservices: Part of the Leisure Service Market 467

Our real-world advice comes from Guy Procopio, Concessions Manfter, MSU Concessions, Division of Housing and Foodservices, Michigan State University.

In his current position, Guy Procopio oversees food and novelty sales at all concessions-related events at Michigan State University. He has served as the president of the National Association of Collegiate Con- cessionaires and as a board member of the National Association of Concessionaires. His undergraduate degree is in material and logis- tics management.

Our feedback issue relates to situations that can occur before or during a game. An experienced'pro is not likely to experience diffi- culty with, for example, nonfunctioning equipment (it is under a pre- ventive maintenance program), nor will concession stands run out of products (they will have been stocked with adequate supplies based on sales history information). But here are three situations that can occur that are bevond one's control.

Situation l: Weather Changes before or during the Game

Considec for example, a rainy and/or cold day that turns sunny and warm during the event, or the reverse. Cold beverages sell better in wanner weather; warrn beverages sell better in cold weather. Since markups are higher for cold beverages (soft drinks) than for warm beverages (coffee and hot chocolate), concessionaires hope for warm weather. The worst-case weather is tor- rential rain (fans either buy less food and drinks oq at least, dont take them into the stands but, instead, consume the products under cover of the stadium) or an extremely cold blizzard (which might keep some fans ai home). (Michi- gan State concession managers always expect at least 60,000 fans for every game regardless of the weather and the winJoss record of both teams.)

Managemefi Tfuctics

Concessionaires monitor the weather closelv for several days before the game. The5r adjust conces$ion stand inventories as game duy draws closer. trnv3:ntories include both products and other items. Fol' example, cold weather means more coffee and cocoa souvenir mugs will have to be stocked in the stands. Hot weather requires more large soft drink cups, in-

cluding souvenir mugs. Effectively designed stands are basically self-operated and require limited assistance from concessions staff dur- ing an event. Stands have equipment to make required hot beverages and have ample storage for cold beverages, including the water and ice needed for beverages and to cool the bottles of water. Experienced stand managers know how to proactively respond to weather change dur- ing a game. For example, if it begins to rain or turn cool during the game's first half, they will begin to prepare additional quantities of hot beverages to be ready for increased sales during half-time. They know that, if they are not ready, sales will be missed.

At Michigan State, merchandise such as rain gear (ponchos and hats) is sold by subcon- tractors. They must also anticipate and prepare for the impact of changing weather in their saldtUse of these tactics allows salespersons to be ready with the right product regardless of the weather.

Situation 2: Inadequately Staffed Concession Stands

As you have learned, many concession stands are staffed by volunteers from nonprofit organi- zations that receive significant funds from the

(continued)

468 PARI' 5 Recreation and Leisure Organizations

efforts of their volunteer members. Unfortu- nately, groups can, on rare occasions, rlot show up or provide an inadequate number of stand employees.

Management Tfuctics

The immediate response is to ask volunteers from other stands to help out (frequently there are more than the necessarv workers in some stands). Each group who piovided extra assis- tance would receive a prorated share of the stand's revenue percentage that would other- wise be given to the organization originally as- signed to the stand. It is also possible to bring in a backup service group of individual mem- bers to work where needed. For example, a vol- unteer group of 1,2 to 16 persons might be hired for a flat fee of $250,00 to work anyrvhere and everyrvhere during the game. Over the longer term, concession managers use groups with a great track record of past assistance. Problem organizations are eliminated, and managers as- sure that organizations are well aware of the funding assistance they receive. They also ex- plain that other groups would like to work with the university (there is a waiting list) and are available if necessary.

Situation 3: A Game with a One-Sided Score at Half-Time

If one team is winning by a large margin, many fans will likely leave early, and concessions

personnel will have been busy during the first half of the game getting ready for significant half-time sales that will not occur. Significant hawker sales can also be lost during the second half of the game if fans leave early.

Ifianagement Tactics

There is little that can be done to reduce the cost of the perishable foods that have been pro- duced during the first half of the game and that will now not be sold. Stands will stay open as late as possible to maximize sales for the fans who do stay. Hawkers will still be sent into the stadium at half-time and during the second half to provide products to fans who may make impulse purchases while at their seats. Bagged ice that is still in good condition can be placed back in the freezer. Some prepared foods might be available for donation to local charities. However, since items will have to be counted to determine sales that were made to determine concession stand commissions, this could be difficult to do because of sanitation problems caused by time lapses and handling and rehan- dling during postgame inventory procedures. (Concession managers typically do not dis- count selling prices to encourage additional sales, since fans will likely expect discounting in the future. Also, labor cannot be reduced, since it is almost like a fixed cost, because of the need to clean up the stand before the next event.)

1. Check out the websites for the followins companies:

o Ovations Food Services: www. ovati ons foods ervi ces. co m

. ARAMARK: www.aramirk.com

o Centerplate: www.centerplate.com

What type of information, if any, is provided about the sports and recreational foodserice units that they oper4te? What kinds of posi- tion vacancies do they advertise?

2. Compass Group North America (www.cgnad .com) purchased Lety Restaurants in 2006. Leqy Restaurants is a leader in sports and en- tertainment foodservice, with more than 30

percent of professional sports teams in its portfolio. To view its website, go to www .le',yrestaurants.com. What factors are sug- gested that make this organization successful? What are the current events publicized in the site's newsroom?

3. Check out the website for the National Associ- ation of Concessionaires: www.naconline.com. What are the major topics and challenges that this association is addressing for its members? Also, review the website for the National Association of Collegiate Concessionaires: www.nacc-online.com. What are its special concerns and interests?

Cf'[A ]"]"tiF{ 23 Sports and Recreational Foodservices: Part of the Leisure Service Market 469

The following terms were explained in this chapter. Review the definitions of any words with which you are unfamiliar. Begin to utilize them as you expand your vocabulary as a hospitality professional.

leisure time recreation recreational foodservices industry stadiums coliseums hawkers (sports and recreational foodservices) adjusted revenues (sports and recreational

foodservices)

contribution margin (sports and recreational foodservices)

per capita point-of-sale (POS) terminal pantry (sports and recreational foodservices) catering (sports and recreational foodservices) combo units