Carts, Kiosks And The Death Of The $2 Hotdog

There was a time not long ago when sports fans could watch their teams play and enjoy a hotdog or burger that cost them about two bucks. Maybe they would toss back a $3 beer. If they wanted something fancier, though, they largely were out of luck. And the uninspired food carts and kiosks that sold them reflected it.

Those days are long gone.

Three factors have rocked the world of ballpark and stadium concessions.

More pressure than ever is put on facility managers to increase revenue. Those star athletes don't come cheap.

U.S. consumers have acquired a robust taste for finer foods and drinks wherever they go.

Steep competition among retailers, especially during the recession, resulted in a new appreciation for the fact that a store can wage war for only so long on the battlefield of price. The new front was set up along the lines of the customer experience: Better service in a better environment might help sales as much or more than scraping ever more profit from the price tags. Customers now expect every business that wants to do business with them to step up to that plate.

Those managers have several options when it comes to maximizing food and drink revenue: food variety, food quality and presentation.

Indeed, hotdogs and burgers aren't enough. A partial look at one ballpark's menu says it all: Izzy's Hand Scooped Ice Cream Butcher & the Boar Beef Rib Tips Valentini's Porchetta Egg Rolls and House Made Meatballs Minnesota Crispy Belly Bacon with Jalapeno Jelly & Vinegar Slaw Smoked Meat Sandwich w/ Vinegar Slaw & Maple Syrup Hot Sauce Vegan Dog Kramarczuk's Sausage Kosher Dog Sandwiches Murray's Steak Sandwich Tony O's Cuban Sandwich Jalapeno jelly with vinegar slaw? Not only are many of the items exotic, some are as pricy as you'd expect from a sit-down meal in a nice restaurant. One of the sandwiches above costs $14.

Assuming the foods in the variety are made with care from quality products, all the manager needs to do now to justify the higher price points is to vend them from a food cart or kiosk that looks like it would sell a $14 burger.

Many people who are new to shopping around for a food cart or kiosk designer and manufacturer don't instinctively understand the practical difference between the two stands shown below. If a Cuban sandwich is good from a simpler, less expensive kiosk, why spend more for a premium kiosk? The reason is simple: Perceived value.

You can see the same principle at play everyday when it comes to coffee. A large regular brew at McDonald's is $1. The same drink at Starbucks will set you back about two and half times that amount, even when many people prefer the McDonald's coffee. But somehow, Starbucks feels worthier of the higher price. The stores are richly appointed. The staff is better trained. And while yes, it costs more for those things, ultimately the margins-and the profits-are higher.

If you want to make more from concessions (or even retail items in other settings), start with a worthy product. Then sell it from a worthy setting.

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