How Southwestern University Improved Its Food and Beverage Services at Football Games
Southwestern University is a small private liberal arts college in Texas that has a strong football program. The university hosts six home games every year at its 55,000-seat stadium. The fans are loyal and enthusiastic, but they also have high expectations for the quality and variety of food and beverage options available at the games.
In the past, the university contracted with a local vendor to provide food and beverage services at the stadium. However, the vendor was unable to meet the demand and satisfaction of the fans, resulting in long lines, low sales, and frequent complaints. The university decided to take over the food and beverage operations and hired a new director of food services, Dr. Joel Wisner.
Dr. Wisner conducted a thorough analysis of the current situation and identified several areas for improvement. He estimated that the prorated portion of the stadium cost would be as follows: salaries for food services at $300,000 ($60,000 for each of the six home games); 2,400 square feet of stadium space at $100 per square foot; equipment rental at $50,000; and utilities at $10,000[^1^]. He also surveyed the fans and found out their preferences and willingness to pay for different types of food and beverages.
Based on his findings, Dr. Wisner developed a new menu that offered a variety of items, such as hot dogs, hamburgers, pizza, nachos, popcorn, soft drinks, beer, wine, and coffee. He also implemented a new pricing strategy that aimed to maximize revenue and profit while maintaining affordability and value for the fans. He set the prices based on the cost of goods sold (COGS), the expected demand, and the elasticity of demand for each item.
Dr. Wisner also improved the efficiency and effectiveness of the food and beverage operations by hiring more staff, training them well, increasing the number and size of concession stands, installing more cash registers and credit card machines, and using mobile carts and vendors to reach more customers. He also introduced a loyalty program that rewarded frequent buyers with discounts and free items.
The results of Dr. Wisner's changes were impressive. The average sales per game increased from $125,000 to $200,000, while the average COGS per game decreased from $75,000 to $60,000. The average profit margin increased from 40% to 70%, resulting in an annual profit of $840,000 for the food and beverage services. The fans were also more satisfied with the quality, variety, and convenience of the food and beverage options at the games.
Dr. Wisner's case study demonstrates how Southwestern University improved its food and beverage services at football games by applying sound business principles and practices. His success also shows how important it is to understand the needs and preferences of the customers and to provide them with value-added products and services. 061ffe29dd