Looking for Food in All The Right Places
According to Packaged Facts, foodservice sales at U.S. amusement parks are projected to reach $2.9 billion this year, higher than pre-recession levels. For most such venues, sales of food, beverage, and merchandise are second only to admissions in total revenue. For Cedar Fair in 2011, these items totaled nearly $350 million and comprised more than a third of total revenue. In the Disney Parks and Resorts, sales of food, beverage, and merchandise almost equaled admission revenue. At the Universal Orlando resort, foodservice sales were more than 10% of total on-site revenue.
Theme parks aren’t the only nontraditional venue for food and beverage sales. Concessions sales are second only to ticket sales in most movie theatres. AMC Entertainment, one of the world’s largest theatre circuits, posted total revenue of more than $2.6 billion in its most recent fiscal year, 27.3% of which came from the sale of popcorn, sodas, nachos, candy, and other snacks. At another of the industry’s leaders, Carmike Cinemas, concession and other sales represented nearly 36% of total operating revenues, and the average patron spent $3.66 per visit.
Bowling alleys are another non-restaurant option for manufacturers and distributors to consider as customers. Last year, food, beverage, and merchandise sales accounted for nearly 30% of total operating revenue at Bowl America, and while Brunswick Corp. no longer breaks out actual foodservice sales generated at its many snack bars and restaurants, approximately 25% of its total revenue from its bowling and billiards segment derives from food and beverage purchases.
Also providing a major option for vendors are hotels, motels, and casinos with on-site restaurants. Food and beverage sales at the major full-service hotel operators are typically in the 30-35% range, while at the major casino operators such as Caesars Entertainment and MGM Mirage, food and beverage represent around 20% of net revenues.
So that our customers don’t miss out on these potentially lucrative alternate markets, Chain Store Guide has been covering nontraditional foodservice venues for decades. Although many of these business types have been particularly hard hit by the recession, the graph below shows a recent history of foodservice sales in these settings and reveals that they are starting to get back on their feet:
Source: Chain Store Guide Database of Chain Restaurant Operators
Chain Store Guide’s Chain Restaurant Operators database currently contains nearly 400 such listings, including not only the types of operations discussed above but also such outlets as Walmart and Target, Barnes & Noble, TravelCenters of America, International Speedway, Greyhound Lines, and many others. Customers of our Plus online database also have access to nearly 700 convenience-store operators with in-store foodservice.
If you would like to learn more about Chain Store Guide and its full coverage of the foodservice industry, please contact us at 800-778-9794.