The gamble of the Atlanta Falcons to reduce the prices of food and beverages at the concession stands in Mercedes-Benz Stadium is paying off.
According to the report, the food and beverages at the new stadium are 50% lower compared to the Georgia Dome. Despite the half-price, the Falcons earned 16% more in profits.
“There’s a huge value in delighting your fan base, to make them as happy as they could possibly be,” AMB Group Steve Cannon said. “We started with one of the biggest pain points and it paid off.”
Reportedly, fans can buy unlimited soda, hotdog or bottle of water for just two bucks. They can also buy pizza slice, waffles or nachos with cheese for just three bucks. The prices are fixed and fans are encouraged to pay the exact amount to help speed up the transactions. For beer taps, the new stadium recorded 1,264 more glasses, worth five bucks each.
However, the Falcons also made sure to improve its services and the quality of the food, as well.
In fact, a survey made by the NFL, revealed that the concession stands in the Mercedez-Benz Stadium are head-and-shoulders above their counterparts in other home stadiums. Fans were made to rank the stalls according to the speed of service, variety and quality of food, as well as the price-and-value ratio.
And because food is cheap, fans go to the stadium two hours earlier so they can avoid the queues. It also allows the Falcons to start the games earlier.
“Sure, we could shake out a few more dollars of margin under the old model, but we believe that the direction we’ve taken, given all the other positive benefits, is the bigger revenue play, period,” the CEO said.
More importantly, the Falcons have successfully introduced a business model for other NFL teams to follow.