In Kinnick Stadium (Where the Iowa Hawkeyes play) Presidential Suite at the University of Iowa for a funding event) –
Left to Right: William Anderson, Elijah Doetsch, Carson Goodale
New technology from startup ventures is transforming the global sports industry. This Startup Series has introduced over 200 startup companies in the sports technology space to a broader audience by allowing Founders of promising new ventures to tell their story and pitch their idea. Feel free to submit your startup’s answers to the below questions or contact us if you know of a startup that should be considered for inclusion in this series.
Company name: FanFood
Founder(s): William Anderson, Carson Goodale, Dustin Hemesath, and Elijah Doestch
Headquarters: Based in Iowa City, IA
1. What is your elevator pitch?
Concessions in the United States generate $35 billion dollars a year across a diverse cross section of industries. Sports stadiums alone generate $28 billion dollars in concession revenues per year. FanFood is a mobile concessions application that gives fans the ability to forego concession wait lines at sporting events and request an order to be delivered directly to their seat.
2. Problem & Solution
The demand for an improved in-venue experience is at an all-time high. We have found that the reason many fans who opted out on buying concessions is directly correlated with the wait. While in concession lines, fans are missing the action they paid to see. FanFood allows fans to place an order from the comfort of their seat and request it for in-seat delivery or express line pickup. FanFood is enabled through a free-to-download app available across all major digital distribution services. As a customer directed POS system, it serves as an adjunct to existing concession service providers and is adaptable to all systems; this requires zero operation adjustments for the concessionaire.
3. Market – your target market and the overall market
FanFood is taking a bottom-up approach to our selected market. The stadium market can be broken down into five sectors: professional, minor professional, large college, small college, and high school; each possessing their own distinct set of marketing channels. Due to their size, accessibility, and demographics; FanFood plans to focus initially on the college and high school markets. There are currently over 1,100 colleges in the U.S, including 225 in the Midwest alone. In 2015, these stadiums accounted for $8 billion dollars per year in concession sales. As we will continue to dabble with the high school level for now, our primary focus is on the collegiate market where the problem is more prominent.
4. Business Model – how do you make money?
We are essentially a zero opportunity cost initiate for our partnered venues. Our revenue model is based on a transaction fee per order. At the collegiate level, we expect fans to willingly pay a convenience fee for express pickup or in-seat delivery, respectively. At larger venues, fans inclination to pay marginally increases as overall concession prices increase, as well as the wait in line. The amount for the transaction/convenience fee will vary depending on the venue’s capacity and average attendance volume. Once we become established with larger scale venues that host multiple concession vendors, we will have a bidding process for which vendors we will provide our service for. Once FanFood is able to prove that their technology increases sales for venues, we will look to charge a monthly licensing fee for the software.
5. Management Team – with titles
Dustin Hemesath is the CEO and has 10 plus years in B2B sales, business management, budgeting, and business planning. He has spent the last four years building a startup in the golf industry that is still operating to this day. His role includes setting the vision for the company, hiring, and financial oversight.
William Anderson is the COO and has one year left at the University of Iowa working on a degree in Entrepreneurship and Sports Management. Worked in the fields of law, marketing, brand expansion, and workers comp. Former experiences with myMatrixx & MidWestOne Bank.
Carson Goodale is the CFO and recently graduated from the University of Iowa with a degree in Finance. Former Equity Research Analyst for University of Iowa Endowment Fund & Investment Research Intern at Hawkins Wealth Mgmt
Elijah Doetsch is the CMO and has one semester left at the University of Iowa working on a degree in Economics and Finance. Previously worked for the Chicago Board Options Exchange. Prior to working for FanFood, Doetsch wrote freelance for a FOX syndicated Sports blog for 2 years.
6. What else do you want the audience to know about your venture?
In 2015, over 75 million fans attended collegiate or high school sporting events – in addition to the 150 million who attend professional sporting events in the U.S. alone. In a recent survey, Oracle found that over 42% of fans had abandoned long lines at concession stands, leaving over $15 billion in lost revenue. Our ordering process is user-friendly and brings that at home comfort we all know and love to the live sporting entertainment atmosphere.
If you’ve had a bad experience waiting in concession lines at a venue near you, please don’t hesitate to reach out!
For Inquiries: will@fanfoodapp.com
If you’re an investor, startup founder or influencer, we recommend you check out ProInfluence, a platform that is uniting sports entrepreneurs and leaders to form mutually beneficial business partnerships.
