Stadium Central

An interesting article recently appeared on the Fox Business website that discusses the economics of the $10 hot dog at stadiums and arenas. While one might think that the operators of concessions at stadiums must be raking in huge profits, the article states that 40-50 % of revenues goes directly to the stadium authority or the team. The story likened the situation at stadiums to those at movie theaters, where the price of admission is set to barely offset rent, movie rental fees, salaries, and other expenses, while sales of food and drink leads to real profit. The article also pointed out the trend in stadiums towards higher priced food that has better quality and the focus in new stadium design on concession areas in addition to seating areas. That latter point is driven home by Petco Park in San Diego, where the concession areas practically form an entirely different venue surrounding the seating bowl.