Many of us have been there. We’re at a stadium concert or sports game and feel parched and starving. After waiting in a line for what feels like forever, we get to the front only to find a single beer and hot dog is $40 dollars. This is barely hyperbole. And in today’s economy, that just doesn’t seem tenable.
Well, Atlanta Falcons fans have another reason to celebrate just in time for the new season, (on top of their electric running back, Bijan Robinson). Their stadium concessions model cut prices by a huge margin. And it seems that many fans and the stadium owners continue to be thrilled by the results.
‘Fan first’ prices
Posted on Business Insider’s social media pages, they share an Instagram Reel that begins with people preparing food. A chyron reads, “How one stadium actually serves cheaper concessions.” A voice comments, “In my investigation to find how stadium food got so expensive, I was surprised to find at least one stadium is making a change on its own. And it says it’s working for the stadium and fans.”
The clip cuts to Nikita Grant, a producer for Business Insider, who shares, “When Mercedes-Benz Stadium opened in Atlanta in 2017, it launched what it called ‘fan first’ pricing. It’s a model that prices concessions at or near what you’d pay on the street. Like two-dollar hot dogs and five-dollar beers.”
We then meet Tim Zulawski, the president of Arthur M. Blank Sports and Entertainment, who explains further: “We took those core items and made sure they were available at what we call ‘street pricing.’ If you could go outside the venue, and you can get a Coca-Cola for three dollars, then we expect it to be three dollars inside the stadium.”
Spending increased 20%
Over videos of beer, donuts, and other food items, Grant shares the results: “With cheaper concessions, you would think the stadium would make less money, right? Actually, the opposite happened. The stadium says fans spent 60 percent more on food and drinks. And it saw a 30 percent increase in total transactions. Overall spending also increased by 20 percent.”
Grant concludes that her conversation with Zulawski opened her eyes: “Speaking with Tom made me realize just how much concession prices influence the fan experience.”
Zulawski relays, “They have the freedom to further invest, if you will, in the experience. That ultimately results in hats being purchased, or a jersey being purchased. Or other items within the experience, now going into the basket. The model we have in place leaves people feeling more valued and feeling more fulfilled. And yeah, when they leave the venue, oftentimes, they have taken or purchased more things. But do so in a manner where they’re like, ‘Wow. I got a lot more for my money.’”
Grant shares that this model idea has spread. “Tim said the ‘fan first’ pricing model has also caught the eye of other stadiums.” Zulawski shares, “It can be done full-scale like us. Or might be as simple as a fan-friendly meal pack.”
Take me out to the ball game
It’s true that other stadium groups have implemented street pricing. In a recent post comparing Major League Baseball stadium prices, they illustrate that some fields like Coors in Colorado and the Angels in Anaheim keep beer prices around $4 dollars or less. (Over in Boston, however, Fenway beers go for closer to $11 dollars.) On the flip side, Yankee Stadium reportedly has hot dogs for only $3.08, which is a pretty unbeatable price.
Instagram commenters weighed in. This person shares why it works: “I wouldn’t buy a $10 beer, but hell I’ll have 4 five-dollar beers. Won’t have a $15 hot dog, but I’ll inhale 5 $2 hot dogs.”
Another points out that it’s not just for Falcons games: “It should be noted that Fan First pricing is for all events hosted by MBS, not just Falcons games. That includes concerts, Atlanta United soccer, and the World Cup games.”
This Instagrammer makes the demand a bit stronger: “But of course. If products are affordable, people are more willing to spend $. Just ensure ingredients/products are quality, please.”
