The Evolution of Sports Venue Foodservice
In a post-pandemic world, the sports stadium construction industry is experiencing a resurgence. According to IBISWorld, after a 3% decline in the past five years, a 2.2% compound annual growth rate (CAGR) is projected for 2023 alone, with profit margins remaining stable at 4.4% of revenue. Technomic anticipates a 6.8% growth in the sports and recreation segment in 2024, signaling a return to pre-pandemic rates.
When it comes to the culinary aspect, a report by Datassential revealed that 78% of consumers ordered food during their last sports venue or concert visit. Non-alcoholic beverages were the top choice at 69%, while alcoholic beverages lagged at 37%. The study emphasized the pivotal role foodservice plays in the fiscal success of these venues, with an average spending of approximately $32 per person.
Despite the spending, Datassential found that only 44% of consumers were very or extremely satisfied with their food and beverage choices, indicating a gap in meeting consumer expectations. Patrons expressed a desire for more extensive selections, larger portions, healthier snacks, and unique options.
To address this, chefs and foodservice operators have been challenged to enhance the variety of offerings. Pre-pandemic, venues collaborated with local restaurants and celebrity chefs to elevate the quality and diversity of their menus. Grasshoppers, loaded Impossible Burgers, lobster corn dogs, and artisan pizzas were among the innovative items introduced.
In 2023, Levi’s Stadium in San Francisco introduced new menu items, including picadillo sirloin nachos, foot-long cheddar bacon brats, crab sandwiches, pastrami burgers, Nashville hot chicken sliders, Filipino lumpia, and spicy ahi bowls.
While newer offerings are gaining popularity, traditional staples remain crucial. Datassential's research found that 73% of consumers expect burgers, 71% expect handhelds, and 70% expect pizza when attending a game or concert.
The increased focus on foodservice has led to greater collaboration between architects, consultants, and other industry players in the design and planning stages of sports venues.
Architects and consultants are striving to create an elevated fan experience by focusing on menu diversity and the presentation of food in various areas such as concessions, marketplaces, clubs, bars, and suites.
Here are some key trends within sports venue foodservice:
1. Remote Ordering Continues to Trend: Mobile ordering has proven to be a game-changer, with a 30-40% average check growth. Remote ordering has stayed popular post-pandemic, with fans retrieving their food from designated areas.
2. Marketplaces Are the Place to Be: Marketplaces offering self-checkout kiosks and convenient, pre-packaged goods are gaining traction, reducing congestion in concourses and providing a more seamless experience.
3. Locations Closer to the Customer: Rather than relying on centralized commissaries, there's a shift toward smaller, remote outposts positioned closer to suites, allowing for more on-site cooking or finishing.
4. Clubs and Bars Are a Bigger Deal: The trend is moving away from large suites to smaller-sized clubs, with each having its own kitchen. Flexibility for different events and exclusivity are key considerations.
5. Better Beverage Solutions: Long-line tap systems are being replaced by localized taps and packaged beverages, offering more variety and convenience. Ventless equipment is becoming essential for smaller cooking or finishing areas.
As sports venues evolve to meet the changing demands of consumers, the collaborative efforts of chefs, architects, consultants, and other stakeholders are driving innovation in the foodservice industry. The emphasis on enhancing the fan experience through diverse culinary options and convenient service reflects the dynamic landscape of modern sports venues.