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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

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