Not necessarily:
.
Somehwhat off topic, but
Why is it that food and drinks cost so much more at a stadium than the same items cost elsewhere? Whether its beer, or hot dogs, or ice cream, or nachos, they generally at least twice as much at the stadium as elsewhere.
Because of that, I rarely get anything at a ballgame due to such high prices. I can’t be the only person who thinks that way. Especially if you are taking the family to a game, these concession costs will hurt.
Not necessarily:
.
We went to watch the Yankees lose (miserably) to the Royals on 5/15 in KC, and were pleasantly surprised that hot dogs were just $1 each.
I take my kid(s, one at a time) to an NFL game in Houston. Usually get them the $5.00 hot dog and drink combo, and the same for me.
I don’t drink with them, and thinking of quitting completely (just takes too long to recover from a night of “fun”).
They usually get some ice cream and/or cotton candy, too.
That’s about it.
Typically, the concessions company either gets volunteers to man the booths (a friend of mine did that twice last year), so they don’t get paid - but they get a portion of the proceeds (or maybe profits) to help with his AAU basketball team. Maybe that’s part of the high prices?
Same reason they are so high at airports. High rent on high cost real estate with high foot traffic.
Say I want to be the beer vendor for our local farm club.
I go to the business manager and put in a bid.
My bid guarantees the club x percent of profits on X number of cases of beer per game, with additional cases sold if they make the playoffs.
Naturally the club accepts the highest bid, guaranteeing the best profit for the club.
If I'm the winning bidder, I have to price my beer so I can pay the guaranteed profit and make something for myself.
I have to remember I have only about 80 (?) home games that season to fulfill my contract. In those 80 days I have to pay for the product, the club, any insurance I'm required to carry, my employees and then myself.
That's the way it worked for a buddy of mine.
He lost a small amount on his concession business, but made enough business contacts that his vending business grew.
It's a cut throat business.
Oddly enough, concessions are usually a ball parks money maker.
Same way that theaters maybe break even on ticket sales but make money on concessions.
Plus it's a captive audience.
You can't take anything in so you have to buy from the vendors.
Vendors have a captive audience at the stadium.
They probably pay through the nose to get the vendor’s slot in the first place so they have to recoup their expenses.