McKay said the Falcons and Owner Arthur Blank are still hashing out where they can cut more pricesRICK OSTENTOSKI
Mercedes-Benz Stadium -- known for its $2 hot dogs and sodas and $5 draft beers -- could see more price cuts next season as the Falcons and Atlanta United see increased spending from the consumer friendly concessions model. During a presentation on Day 1 of the '18 AXS Sports Facilities & Franchises conference in Detroit, Falcons President & CEO Rich McKay said Owner Arthur Blank wants to potentially cut more prices. Blank's AMB Group last month won the Sports Business Award for Sports Breakthrough because of its food and beverage pricing. McKay said the team and Blank are still hashing out where those price cuts might come. “We’re still debating with our boss,” McKay said. The Falcons’ approach to pricing at the new stadium has turned food and beverage business models and sports venues on their head. The Ravens are cutting F&B prices for the '18 season and other teams, leagues and venues are also looking at Atlanta’s price cuts. McKay said per-cap fan spending is up 16% at M-B Stadium with the new pricing, which also includes $2 pretzels and water bottles, $3 pizza slices and $6 for a chicken tenders and fries basket. “Financially to us it was a big mover,” McKay said. McKay credited the new food pricing with fans getting to the Atlanta stadium earlier and spending more money at retail shops. “Game day (merchandise) sales are up 90 percent. We’re number one in security screening,” McKay said of the Falcons rating in NFL fan surveys. “For us what F&B did was help us change the full anatomy of all our service, all our game day service staff.”
DEVELOPING THE MODEL: McKay said the evolution of the “street pricing“ model came out of visits to 15 stadiums, meetings with major concessionaires and examinations of fan surveys that ranked F&B prices and value low. The end result was taking the prices of top selling stadium F&B from a combined $72 down to $34. Levy Restaurants manages F&B at M-B Stadium for the Falcons and United. Adopting the low-price model is not without challenges. McKay said the cheaper menu has to be offered throughout the stadium and there has to be the staffing, kitchens and ovens throughout the venue keep up with demand. “It’s everywhere throughout the building, including the clubs,” McKay said. M-B Stadium has a game day staff of approximately 4,500 workers to make sure lines don’t get too long and discourage fans. He also said adopting the model might be easier for new buildings than existing ones because the latter might not have the kitchens, concessions stands and infrastructure to offer and handle higher-volume, lower-price food and beverages. McKay said the stadium is also looking to increase its offerings of craft beers, with sights set on preferences of soccer fans. “We’re going to try to do some really cool things in that space. We are going to look in that space to do something,” McKay said. But don’t expect high prices. “We’re not going to have a $10 beer,” he said. “That’s not an option.”
