By Tyler Rizzo, Storyland Studios
In the themed entertainment industry, arguably the most important driver of profitability is the venue’s food & beverage department. Typically, F&B represents the largest driver of on-premise spend. It is often 2-3x the per capita spend of other individual categories like retail, games, or other ancillary departments. All of that to say, it is extremely important that an operator gets their offering right.
I am fortunate enough to frequently visit some of the best-themed entertainment operators on the planet. Whether it is a professional site visit or a personal outing with my family, I can’t help but pay attention to how these leading companies are improving and adapting their F&B for a post-pandemic world. Here are the F&B trends I think are the most important to take the next step in 2024.
It starts with investment
This may be obvious, but the biggest F&B trend has been meaningful investment in the department. For decades, facilities have rested on having access to a captive audience. This relies on the age-old philosophy of “you’ve got to eat”.
But the consumers of 2024 are expecting better than frozen chicken tenders and french fries. And they want that quality faster than before. Successful venues are investing in both physical and human capital, and the results are clear. There is no better example of this than Cedar Fair.
Over the last 10 years, “FUN” has invested over $160 million in capital to create incremental facilities, improve the front-of-house efficiency, and update back-of-house capabilities to create an all-new F&B offering. This has included new mega feeders like BackBeatQue and the Grand Pavilion at Cedar Point, as well as the refurbishment of existing facilities like the Blue Ridge Country Kitchen and Terminal A at Carowinds.
In addition to the trend for F&B upgrades, the corporate leadership team is committed to investing in its people. It has hired dedicated F&B specialists at a corporate level and brought executive chefs to every park to oversee the improving quality.
The results?
F&B revenue has grown by over $200 million, or a 7% CAGR. Considering that FUN’s total per cap grew by a 3.5% CAGR over the same period, it is clear the results out-paced other internal departments. It should be considered a massive success and a blueprint for future operators.
There are plenty of other big-name players putting strong capital behind growing F&B. At United Parks & Resorts (formerly SeaWorld Parks & Entertainment), Busch Gardens Tampa, SeaWorld Orlando, and SeaWorld San Antonio have all announced refurbished facilities via their social media channels.
Also, at Universal Orlando Resort, Mel’s Diner has been under refurbishment for several months. After a length of closure, Circus McGurkus Café Stoopendous reopened in time for Spring crowds.
Find ways to enhance the experience
Speaking of the Universal Resort, this team has been the most aggressive in embracing the post-COVID consumer trends and finding service methods to speed up F&B wait times, or at least adjust the perceptions of long lines.
Over the last few years, Universal has dialled up and down the aggressiveness of forcing Mobile Orders. However, it also seems to have found a sweet spot that encourages a shift to digital while eliminating the traditional pain point of long lines of people waiting to order at a register.
Many of the quick service facilities at the resort have switched from a traditional “pay-first” queue to a modified table service through mobile ordering. Instead of queuing to order and pay, and then queuing to pick up the food, and then finding a table, guests can find a seat, order on the app, and have the food delivered to the table by a runner.
This service style was tested at several locations last year, including Café La Bamba. It is slowly being incorporated into all venues, based on my observations.
The aforementioned Circus McGurkus was formerly a multi-line cafeteria-style restaurant. It has now completely walled off the old lines and switched to a table order system. Clearly, Universal’s data is showing a positive reception of this F&B trend by guests, either through higher checks, increased satisfaction, or both.
It doesn’t require millions of dollars or a robust mobile investment to find new ways to enhance the experience. At SeaWorld San Antonio, the Great White Grill recently opened. This serves elevated burgers and french fries for those who have an appetite after conquering the Bolliger & Mabillard classic.
This location was formula a snack cart, selling an eclectic mix of what was best described as carnival foods. With minor modifications to the queue line and point-of-sale placement and a little work on the kitchen, SeaWorld was able to bring a new lunch option to guests, raising check sizes and increasing penetration for lunch items, while filling a need for new options in an area of the park that is sure to be busy with the launch of its new log flume, Catapult Falls.
Elevate the staples
The final trend that brings these thoughts together is elevating the F&B quality to meet the demands of today’s guests. I am sure most operators have run into the “chicken tender paradox”. In other words, “Our guests ask for variety, but our #1 seller is always chicken tenders!”.
While that is likely the case, and guests of themed entertainment facilities are more likely to skip the salad while on vacation, finding ways to elevate the basics and mixing in some safe variety will enhance value perception and increase menu penetration.
After testing a combination of Latin and Mexican menus at SeaWorld Orlando, the park went all in on tacos, converting the Lakeside Grill from Greek to Mexican. The menu features the usual beats of classic Mexican food, including street tacos and rice bowls. But it also includes loaded fries and a bacon queso burger. This continues the theme of providing the staples with a twist.
Just down the midway at the Dockside Pizza Co, what once was an arcade now serves extra large flatbread pizzas. This includes a speciality Bianca pizza that will keep the “foodie” happy, alongside the traditional cheese and pepperoni options.
As someone who has been around the themed food world, I can’t wait to see how these F&B trends continue to evolve. I look forward to seeing how it elevates the experience for millions of guests.
F&B is often the biggest pain point for facilities. Let’s be honest, it’s a tough competition with the fantastic rides our industry pumps out. However, with the right focus and strategy, this critical area can be a driver of both profit and satisfaction.
