Friday, December 1, 2023

Technomic report: Leverage foodservice offerings to retain customers and profitability

Marlene Dietrich inspired private dining room at the National WW II Museum in New Orleans

“The recreation segment continues to evolve from a sector with very limited foodservice opportunities to one in which foodservice plays a vital role in attracting and retaining customers,” says Technomic Director Mary Chapman. “In many cases, their core business—from slot machines to museum exhibits—has been suffering, and restaurants are a key way to help build bottom lines. This creates a lot of opportunity for smart foodservice operators, contract management companies and food manufacturers.” 

CHICAGO, Oct. 31, 2011 /PRNewswire/ — It is rare for a 2.6 percent decrease in sales to be considered good news, but in the case of the recreation foodservice segment, last year’s decrease was actually a big improvement over the prior year’s nominal decline of 10 percent. The industry, hit hard by the recession’s lingering effects, has continued to struggle as discretionary spending remains down from pre-recession levels. The recreation segment had retail-sales-equivalent food and non-alcoholic beverage revenues of $15.8 billion dollars in 2010. One way the industry is seeking to restore profitability is by expanding and tailoring  foodservice offerings to attract those customers venturing out and seeking the most bang for their buck. To help companies understand where opportunities lie in the recreation industry, Technomic has developed the Recreation Foodservice Report.

Findings include:

  • Theme/Amusement Parks: Beyond the economic slump, parks are at the mercy of the weather, tourism rates and competition for less-expensive forms of family entertainment. Operators are working to underscore the unique and special qualities of going to a theme park versus other entertainment venues, efforts that often include aggressive promotions involving lodging and food packages, discounts for prepaid food and all-you-can-eat special deals. 
  • Museums: Attendance is down for all fine-arts categories, and museums also are being pinched by reduced donations and civic support. However, museums have been among the leaders in upgrading foodservice over the past decade, often with the help of national or local celebrity chefs. 
  • Casinos/Gaming: After two years of revenue declines, the gaming industry is starting to show signs of growth. Las Vegas, in particular, is benefiting: For the past 16 consecutive months, the number of visitors to Sin City has increased, according to the Las Vegas Convention and Visitors Authority. New regions such as Pennsylvania have also seen growth. Restaurant operators, including celebrity chefs, play a large role in attracting consumers to casinos and keeping them on premise.  
  • Cruise Ships: The number of worldwide cruise-ship passengers increased steadily between 2007 and 2009, reaching 13.4 million in 2009—up a modest 3.0 percent over 2008. Cruise ships have been segment pioneers in leveraging foodservice as a lure to new passengers, not only by adding celebrity-chef-designed restaurants but also by creating cooking-class cruises with demonstrations by culinary experts.  
  • Bowling and Entertainment Centers: A few chains, such as AMF 300 and Splitsville, are moving ahead with plans to open centers where quality dining is the primary draw and bowling alleys are secondary. When the economy brightens, many other centers will follow the lead of these companies. In the meantime, operators are offering family packages and adult-focused theme nights to court customers.  
  • Zoos, Race Tracks and Others: Zoos, aquariums, horse and auto racing tracks, fairs and other entertainment attractions have seen declining admissions. These sectors have responded by reducing ticket prices to draw traffic, promoting foodservice facilities as an important reason to visit, and offering more trend-forward food and beverages to create a sense of excitement. 
  • Stadiums/Arenas: Attendance is down in some but not all markets for major sports, and this remains one of the segment’s strongest subsections. Every other category would love to build foodservice revenues as stadiums have done. Concessions have been improved; popular brand names are common; full-service restaurants are proliferating; and the quality of in-suite catering matches that of fine-dining restaurants.

Technomic’s Recreation Foodservice Report provides an in-depth understanding of recreation foodservice’s major components: casinos, cruise lines, theme/amusement parks, stadiums and arenas, sports clubs, movie theaters, bowling centers, museums, zoos and race tracks. For each of these categories, major players are identified and the present and future role of foodservice is analyzed.

About Technomic
Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.

Judith Rubin
Judith Rubin
Judith Rubin ([email protected]) is a leading journalist, content marketing specialist and connector in the international attractions industry. She reports on design and technical design, production and project management, industry trends and company culture. From 2005-2020 she ran communications and publications for the Themed Entertainment Association (TEA). In 2013, she was honored with the TEA Service Award. She was development director of IMERSA and publicist for the Large Format Cinema Association, and has contributed to the publications of PLASA, IAAPA and the International Planetarium Society. Judith joined World’s Fair magazine in 1987, which introduced her to the attractions industry. She joined InPark in 2010. Judith earned a BFA from Pratt Institute. She has lived in Detroit, New York, Oakland, and now Saint Louis, where she is active in the local arts community.

Related Articles

Latest Articles