CONTENT/TEACHING OUTLINE COMPETENCY: 7.

00 Discuss food & beverage services and on-site merchandising at a sports and entertainment marketing event. Discuss food & beverage services.

OBJECTIVE:

7.01

A. Define the segments of the food & beverage service industry. 1. Concessions. a. Mobile carts or units that sell food and beverages. b. Vendors that sell food and beverages to attendees in the seating areas. These are also called hawkers because they watch fans like a hawk for potential opportunities to make a sale. 2. Counter-service is similar to quick-serve restaurants or food courts. 3. Full-service restaurants are sit-down, public eating places with services provided by a wait-staff. 4. Suites are rooms with a view of the event that have seating and food & beverage services with a full-service wait staff. 5. Specialty services includes services such as the combination of an event and a segment of the food & beverage industry. For example, Cinema Grill in Atlanta, Georgia combines dinner and a movie. B. Explain the history of food & beverage services. 1. Harry M. Stevens H.M. Stevens Concessions Company a. Considered the father of ballpark concessions. b. Sold first program at a baseball game in Columbus, Ohio in 1887. c. Began by selling scorecards to crowds at racetracks, ballparks and arenas. d. Initialized the selling of hotdogs and soft drinks at sporting events. e. Became one of the seven largest concessionaires in the United States. 2. Cretors & Company a. Founded in 1885. b. Patented the process of popping corn in oil in 1893. c. Introduced the worlds first popcorn popping machine at the Worlds Columbian Exposition in Chicago, Illinois. d. Influenced the creation of machines for use in theaters. 3. National Association of Concessionaires NAC a. Founded in 1944 as an association for the recreation and leisure-time food & beverage services industry. b. Provides members and services who seek to increase the standards of excellence in the food & beverage services industry with information. c. Included are owners and operators from the following facilities: i. Movie theaters ii. Stadiums and arenas iii. Zoos and aquariums iv. Colleges and universities v. Foodservice contractors vi. Park and recreation departments
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CONTENT/TEACHING OUTLINE COMPETENCY: 7.00 Discuss food & beverage services and on-site merchandising at a sports and entertainment marketing event. Discuss food & beverage services.

OBJECTIVE:

7.01

vii. Amusement parks and family entertainment centers viii. Ice skating rinks ix. Roller skating rinks x. Racetracks xi. Bowling centers xii. Outdoor facilities xiii. Convention centers C. Discuss contracting and self-operating food & beverage services. 1. Contracting is an agreement between a venue and an external company that provides food & beverage services. a. Advantages include: i. Less time consuming. ii. Responsibility of training and staffing food & beverage employees is assumed by the contractor. iii. Financial liability for waste, spoilage, or other losses is transferred to the contractor. iv. Responsibility of day-to-day operations is assumed by the contractor. b. Disadvantages include: i. Venue gives up managerial control. For example, staffing, inventory, and merchandising. ii. Less profits due contractor fees. 2. Self-operating is owning and operating ones own food & beverage services. This is also referred to as in-house operations. a. Advantages include: i. Owners control the decision-making process. ii. Profits are increased by cutting out the middle-man. b. Disadvantages include: i. Owner assumes all financial liability for waste, spoilage, or other losses. ii. Owner is responsible for all training and staffing of the food & beverage services employees. iii. Owner must have in-depth knowledge of the complete operation. D. Identify costs of operating food & beverage services. 1. Start-up costs are associated with the initial venture of owning a business. For example, equipment, signage, utilities. 2. Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resale. For example, food, wrappers, condiments, paper products, and containers.
Sports and Entertainment Marketing I Summer 2003 97

CONTENT/TEACHING OUTLINE COMPETENCY: 7.00 Discuss food & beverage services and on-site merchandising at a sports and entertainment marketing event. Discuss food & beverage services.

OBJECTIVE:

7.01

3. Operating expenses include costs associated with the day-to-day operations of the business. a. Fixed operating expenses do not vary over a specified period of time. For example, insurance, rent or leases, depreciation on equipment, and employee salaries. b. Variable costs vary on a monthly basis. For example, supplies, utilities, advertising, and security. E. Identify factors affecting revenues from food & beverage services sales. 1. Attendance. 2. Type of event. 3. Weather. 4. Team standing (winning or losing season) affects attendance, which will affect sales. 5. Expenses. For example, start-up costs, cost of goods sold, and operating expenses. 6. Per capita spending is the average money spent by each spectator. In general, as the cost of attending an event increases, the per capita spending increases. For example, for a family of four to attend a movie, the per capita spending is $12. If the same family of four attends a college football game, the per capita spending is $45.

Sports and Entertainment Marketing I Summer 2003 98

CONTENT/TEACHING OUTLINE COMPETENCY: 7.00 Discuss food & beverage services and on-site merchandising at a sports and entertainment marketing event. Discuss food & beverage services.

OBJECTIVE:

7.01

Resources Printed References: Sports and Entertainment Marketing, pp. 32-38, 75, 85, 109, 152, 198, 200-203, 207, 258-259. Suggested Activities: Marketing Essentials, 3rd Ed., Zazz Lab, pp. 3637. Have students identify ten variable costs and five fixed operating costs for the food & beverage industry. Students may select a specific event or venue. Show the movie Dave Thomas: Made Your Way. Have students create a spreadsheet detailing the costs associated with operating a food & beverage service. Have students create a training manual for operating a concession stand. Have students research a food & beverage contractor online. They should include examples of the venues and services they provide for those venues. There is a 7.00 project at the end of this competency. Websites:

Teacher Notes

Other Resources: 7.01 PowerPoint Presentation

Sports and Entertainment Marketing I Summer 2003 99