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

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

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.


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