Theme Park Industry Food Trends 2009 - IAAPA
Theme Park Industry Food Trends 2009 - IAAPA
Theme Park Industry Food Trends 2009 - IAAPA
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<strong>Theme</strong> <strong>Park</strong> <strong>Industry</strong> <strong>Food</strong><br />
<strong>Trends</strong> 2010
EXECUTIVE SUMMARY<br />
• It is a Customers World…..<br />
• Gone are the days of automatic price<br />
increases. Climate is still one of<br />
conservative spending. Savvy customers<br />
are increasingly well informed and actively<br />
using all available resources to seek<br />
discounts and offers. Intense promotional<br />
offers from the fast and fast casual dining<br />
segments outside the theme park industry is<br />
feeding this frenzy.
EXECUTIVE SUMMARY<br />
• <strong>2009</strong> customers re-defined value as being<br />
more than the old quality versus price<br />
model. This has continued in 2010. With<br />
customization becoming an additional<br />
factor into the mix. Entertainment venues<br />
have embraced this concept with a myriad<br />
of internet offers, refill value offers and a<br />
return to old school product value upgrades,<br />
designed to maintain or increase market<br />
share and guest satisfaction.
VALUES AND INCENTIVES<br />
(Old School= Point of sale)<br />
• Fulfilled on park<br />
• Bounce Back Coupons/ Register receipts<br />
• Pass-holder discounts<br />
• Kids eat free offers<br />
• “Best value” promotions<br />
• Blue light specials promote dinner<br />
• 2 for 1 offers at days end
VALUES AND INCENTIVES<br />
(New Wave = Internet)<br />
• Focuses on Pre-purchasing<br />
• Family meals<br />
• All you can eat meals<br />
• Free meals tied to admission<br />
• Free drinks tied to admission<br />
• Bundling<br />
• Souvenir refill programs
Family Meals<br />
• Bundles 4 basic meals into one affordable<br />
price ie 4 burgers, fries, drinks for $29.99<br />
• Utilizes Burgers/Pizza and hot dogs to<br />
control food costs.<br />
• Targets price sensitive families who would<br />
normally drop off as a meal customer<br />
during difficult economic times.
Combo Meals / Wristbands and all<br />
you can drink Refills
All You Can Eat Meals<br />
• Theory is to generate the $ up front and<br />
manage the cost of sales later.<br />
• Captures multiple day parts while directing<br />
traffic to underutilized areas.<br />
• Many parks experience a large % of<br />
breakage…meaning that the meals are<br />
purchased and never used entirely.
All You Can Eat Meals<br />
• Utilizes excess capacity and at times can<br />
have time window restrictions so as to not<br />
interfere with regular paying guests.<br />
• Take out, Sharing and menu item<br />
restrictions are all items to manage.
Meal with Admission<br />
• Promotion aimed at leveraging value of a<br />
meal versus the traditional discount off<br />
admissions promotion.<br />
• Tickets are increasing. With $ 50.00 or<br />
more admission fees, it is harder to get folks<br />
attention unless the discount is $ 5.00 +<br />
• Guests receive value by eliminating meal<br />
costs up front…..they save more $ than a<br />
normal discount as meals often cost $ 10.00
Meal with Admission<br />
• <strong>Food</strong> teams are re-imbursed from Marketers<br />
a set amount which covers their food costs<br />
and more.<br />
• Breakage occurs and in some cases can<br />
result in a substantial profit.<br />
• Risk is that parks that feed a high % of folks<br />
may not be fully re-imbursed to cover meals<br />
from existing customers.
Drink Packages with Admissions<br />
• Used in parks where meals are not enough<br />
of a motivator. Same process, different<br />
numbers.
Bundling<br />
• Savvy operators have found ways to capture<br />
additional revenue by allowing customers to<br />
build onto their pre-purchased meals by<br />
discounting snacks, and beverage offers<br />
through the internet. Again, breakage<br />
becomes a profit generator and folks who<br />
pre-buy, often spend extra cash once the<br />
initial internet purchase is forgotten.
Souvenir refill programs<br />
• This category is examined in more detail<br />
during the second half of our presentation.
TWO NOTEWORTHY<br />
UMBRELLA CONCEPTS<br />
• Customization stations<br />
• Grab and go stations
Customization Stations<br />
• Guest feels “In Control” of the finished product<br />
• Increased number of choices=Increased value<br />
• Often Uses Self service=Labor reductions<br />
• Beverages are A leading focus<br />
• Funnel Cake’s, Salads, Yogurt and Sundae<br />
bars have all been successfully tested.<br />
• Sauces/toppings and seasonings are easy<br />
additions to make
Grab and Go stations<br />
• Expands offerings with pre-packaged items<br />
• Easier to maintain compelling bulk displays<br />
• Promotes niche’ items such as salads and<br />
fresh fruits.<br />
• Labor expense is managed with focus on<br />
points of sale to process guests quickly.<br />
• Service lines are virtually eliminated.<br />
• Great success in waterparks.
Best New Menu Offerings<br />
• Beverages<br />
• Snacks and Shared Walk-Aways<br />
• Entrees<br />
• Healthy/Allergen items<br />
• Profit Drivers through upgraded quality
Best New Menu Offerings<br />
Beverages<br />
• Frozen beverages (Slushes/Lemonades)<br />
• Iced coffees/Frappes<br />
• Fresh Fruit Juices<br />
• Branded Juice Smoothies<br />
• Signature Drinks<br />
• Vending stations (Cool Zones)
Best New <strong>Food</strong> Offerings<br />
Snacks<br />
• Tater Twist (Potato chips on a stick)<br />
• Flavored potato chips with seasonings<br />
• Hand cut fresh fries<br />
• Walk away taco,<br />
• Pretzel bites, Funnel cake fries, Churro fries,<br />
apple fries<br />
• Hand Twisted Pretzels
Best New <strong>Food</strong> Offerings<br />
Snacks<br />
• Cotton Candy<br />
• Hand Crafted Caramel Apples<br />
• Kettle Corn/Flavored Popcorn<br />
• Beaded Ice Cream Sundae shops<br />
• Cupcakes<br />
• Candies<br />
• Flavored Fudges
Best New Menu Offerings<br />
Meals/Entrees<br />
• Hand Battered Tenders<br />
• Hand Dipped Corn Dogs<br />
• Gourmet Burgers<br />
• Rice/Noodle Bowls<br />
• Wing Baskets w/variety of sauces<br />
• Wraps
Best New Menu Offerings<br />
Healthy Alternatives<br />
• Pre-packaged Salads<br />
• Fresh Fruit/Fruit Juices<br />
• Rice Bowl Entrees<br />
• Yogurt stations<br />
• Quick serve salads<br />
• Sweet Potato fries<br />
• Wraps<br />
• Fruit cups and packets for the kids
Upgrade The Quality<br />
• Artisan Breads<br />
• Sauces<br />
• Prepared in Front of Customer<br />
• Hand Crafted<br />
• Hand Dipped/Hand Battered<br />
• Hand Cut fresh Fries
Unlocking Hidden Revenue Drivers<br />
Souvenir Refill Programs - Drinks<br />
• Consumers Will Buy When<br />
Linked to a Potential Savings
Issues that PREVENT Beverage Purchases<br />
at <strong>Theme</strong> <strong>Park</strong>s<br />
Price is the biggest hurdle to beverage purchases at theme parks. However, having to carry the beverage<br />
around and long lines also pose significant hurdles.<br />
80%<br />
70%<br />
68.2%<br />
60%<br />
50%<br />
40%<br />
30%<br />
31.7%<br />
22.5%<br />
20%<br />
10%<br />
2.9% 2.0%<br />
4.3%<br />
3.7%<br />
0%<br />
Price<br />
Temp/<br />
Weather<br />
Type of<br />
Souvenir Cup<br />
Lack of<br />
Availability<br />
Having to<br />
Carry It<br />
Around<br />
Long lines<br />
Other
Retail - Refill Strategies<br />
What should my Refill and Retail be?<br />
What is everyone else doing?
Retail - Refill Strategies<br />
Your Retail price is directly proportionate<br />
to your value proposition.<br />
The better the “Deal”, the higher the<br />
Retail to guest will absorb.<br />
Deal has to make common sense
Retail - Refill Strategies<br />
Seems to be 4 Basic Strategies<br />
High Retail – High Refill (We got’em anyway<br />
strategy)<br />
$0.99 Refills All Season Long<br />
Free Refills DOP, $0.99 Rest of Season<br />
Free Refills All Season
Retail - Refill Strategies<br />
High Retail – High Refill
Retail - Refill Strategies<br />
$0.99 Refills All Season Long
Retail - Refill Strategies<br />
Free Refills DOP - $0.99 Rest of Season
Retail - Refill Strategies<br />
Free Refills All Season Long
Retail - Refill Strategies<br />
How Powerful Can the Right Refill Offer Be?<br />
Busch Gardens –<br />
Williamsburg<br />
Refill/Retail<br />
Adjustment<br />
<strong>2009</strong> - 1.99 Refills<br />
2010 - $.99 Refills
Retail - Refill Strategies<br />
How Powerful Can the Right Refill Offer Be?<br />
216%<br />
Increase in bottles sold!<br />
• Simplified offers 4 to 1 sku’s<br />
• Properly Communicated The Deal<br />
• 84K units to 220K units
Retail - Refill Strategies<br />
POS<br />
• Souvenir Bottles are Impulse Buys<br />
• Properly Communicate “The Deal”<br />
• Touch the Guest Early and Often with<br />
Your Message
Retail - Refill Strategies<br />
Communicate the Deal
Retail - Refill Strategies<br />
Communicate the Deal
Retail - Refill Strategies<br />
Communicate the Deal<br />
Fountain backs are<br />
Valuable Real<br />
Estate
Retail - Refill Strategies<br />
Touch the Guest Early and Often<br />
Entrance Pre-Sell Tent
Retail - Refill Strategies<br />
Find ways to expand Points of “Touch”
POS Layout Study
Effective POS – Evolution<br />
2008 <strong>2009</strong> 2010
Effective POS – Evolution<br />
2008
Effective POS – Evolution<br />
<strong>2009</strong>
Effective POS – Evolution<br />
2010
Effective POS – Evolution<br />
2008 <strong>2009</strong> 2010<br />
+26 +15 +23
Issues that PREVENT Beverage Purchases<br />
at <strong>Theme</strong> <strong>Park</strong>s<br />
Price is the biggest hurdle to beverage purchases at theme parks. However, having to carry the beverage<br />
around and long lines also pose significant hurdles.<br />
80%<br />
70%<br />
68.2%<br />
60%<br />
50%<br />
40%<br />
30%<br />
31.7%<br />
22.5%<br />
20%<br />
10%<br />
2.9% 2.0%<br />
4.3%<br />
3.7%<br />
0%<br />
Price<br />
Temp/<br />
Weather<br />
Type of<br />
Souvenir Cup<br />
Lack of<br />
Availability<br />
Having to<br />
Carry It<br />
Around<br />
Long lines<br />
Other
Retail - Refill Strategies<br />
Make them Convenient to Carry
Retail - Refill Strategies<br />
Make them Convenient to Carry<br />
“Take a look at the image,<br />
this will tell you why we<br />
spent the extra 7¢ to put<br />
handles on the bottle.<br />
After I took the picture<br />
(with approval of course)<br />
I explained to the guest<br />
why I needed to take the<br />
picture. The customer<br />
said, they bought Alien<br />
bottles last year and they<br />
were not easy to carry it<br />
around and they are<br />
appreciative we went with<br />
handles this year…Money<br />
well spent.”<br />
Thanks<br />
Everard.S - Santa Cruz<br />
Beach Boardwalk
Issues that PREVENT Beverage Purchases<br />
at <strong>Theme</strong> <strong>Park</strong>s<br />
Price is the biggest hurdle to beverage purchases at theme parks. However, having to carry the beverage<br />
around and long lines also pose significant hurdles.<br />
80%<br />
70%<br />
68.2%<br />
60%<br />
50%<br />
40%<br />
30%<br />
31.7%<br />
22.5%<br />
20%<br />
10%<br />
2.9% 2.0%<br />
4.3%<br />
3.7%<br />
0%<br />
Price<br />
Temp/<br />
Weather<br />
Type of<br />
Souvenir Cup<br />
Lack of<br />
Availability<br />
Having to<br />
Carry It<br />
Around<br />
Long lines<br />
Other
Retail - Refill Strategies<br />
Shortening Lines
Retail - Refill Strategies<br />
Shortening Lines
Retail - Refill Strategies<br />
Shortening Lines
Retail - Refill Strategies<br />
Shortening Lines
Retail - Refill Strategies<br />
Shortening Lines<br />
1. 398,000 Guests in a 95 Operating Day Season<br />
2. Limited Number of <strong>Food</strong> Locations, Eager to Speed Throughput<br />
3. Interested in Growing the High Margin Fountain Refill Program<br />
4. Concerned About Cannibalizing Bottles and Cans for their Bottler Partner<br />
5. Concerned About Cannibalizing Snack Sales<br />
- 97,792 Fills Handled By the Machines in 95 Days - No Register Transactions!<br />
- Approximately 10% Growth in Bottles and Cans - No Cannibalization<br />
- Growth in Snack Sales So No Cannibalization
New <strong>Trends</strong><br />
Mix it Up
New <strong>Trends</strong><br />
ICEE Mix it Up<br />
• Attracts the Guest<br />
• Engages the Guest<br />
Takes a Regular Transaction<br />
and<br />
Makes it a Guest Experience
New <strong>Trends</strong><br />
Mix it Up<br />
How Many People have ICEE MIU Programs?
New <strong>Trends</strong><br />
Mix it Up<br />
Hershey – Went from one<br />
Location to 2 ($0.09 per cap<br />
to $0.25 per cap)<br />
Kennywood - $0.55 per cap<br />
Clementon Amusement <strong>Park</strong> -<br />
$1.00 per cap<br />
Dorney <strong>Park</strong> - $0.09 per cap<br />
(previous concept did $0.03<br />
per cap)
New <strong>Trends</strong><br />
Signature Drinks
New <strong>Trends</strong><br />
On Line Pre-Sales
New <strong>Trends</strong><br />
Crew Incentives<br />
Prize # 1 a Custom<br />
Coca-Cola 6’ Surf<br />
Board.<br />
Prize # 2 a<br />
Custom Coca-Cola<br />
Mountain Bike.<br />
Prize #3 The Great<br />
Outdoors Prize with<br />
Coca-Cola Kayak,<br />
Chair and BBQ/Cooler.<br />
Prize #4<br />
iPod Nano.
New <strong>Trends</strong><br />
Crew Incentives
New <strong>Trends</strong><br />
Other Refill or Souvenir Opportunities
New <strong>Trends</strong><br />
Other Refill or Souvenir Opportunities
New <strong>Trends</strong><br />
Seasonal Opportunities
New <strong>Trends</strong><br />
Multiple Bottle Sales<br />
Multiple<br />
Bottle Offer<br />
Yields<br />
Amazing<br />
Results!<br />
50% of guests<br />
participate in<br />
multiple bottle<br />
offer<br />
Recommend<br />
Four bottle<br />
Family offer for<br />
2011
Important Trend<br />
Menu Layout - Pictures
Important Trend<br />
Menu Layout - Pictures<br />
Helps to visually promote food items.<br />
Helps Direct Guests to Your Most Profitable<br />
Items<br />
Helps Make Decision Making Process Easier<br />
Helps Stream Line Your Operation
Important Trend<br />
Menu Layout - Pictures<br />
Pictures on Your Menu Board Help to Visually Promote<br />
<strong>Food</strong> Items, and can also Direct Guests to Your Most<br />
Profitable Items.
Important Trend<br />
Menu Layout - Pictures<br />
Helps Stream Line Your Operation
Future Challenges<br />
• Master New Compelling forms of guest<br />
communication<br />
• Manage Technological advances<br />
• Withdrawal Plans from Discount Mentality
• Time For Questions
Additional <strong>Food</strong> Service Workshops<br />
• Tuesday Nov.16th 5:00-6:15<br />
• <strong>Food</strong> and Beverage Roundtable<br />
• Room 331AB (south)<br />
• Wednesday Nov 17th 8:30-9:45<br />
• <strong>Food</strong> Safety<br />
Room S310EF<br />
• Thursday Nov 18th 8:30-9:45<br />
• <strong>Food</strong> and Beverage Case Study Room<br />
S330B<br />
• Thursday Nov 18th 5:00-6:15<br />
• Improving F& B in FEC’s<br />
Room S330B