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Falcons Stadium Transactions Up 30% Since Huge Food Price Cut

The Falcons slashed concession prices in 2017, which led to an uptick in overall sales. Now more teams appear to be following their lead.

Mercedes-Benz Stadium
Kirby Lee-Imagn Images

The Atlanta Falcons may go down as pioneers in the sports concession industry. 

In 2017, the team opened its new $1.6 billion Mercedes-Benz Stadium with a pleasant surprise for fans: a jaw-dropping drop in concessions prices. 

The team slashed prices of hot dogs from $8 to $2, soda from $5 to $2 (including free refills), and beer from $8 to $5 (for some local beers at the time). In total, prices came down nearly 50% from what they were at the Georgia Dome, the team’s home from 1992 to 2017. 

The NBA’s Hawks followed suit a year later, cutting prices ahead of their 2018–19 season. 

Teams are able to discount concession prices partially because they’re a smaller source of revenue compared to other categories, including merchandise and ticket sales. When the Falcons were making their original calculus, the decision to reduce margins on food was made with the bet that it would have a positive impact on the bigger moneymakers. 

For the Falcons, that has been the case. Total transactions are up 30% compared to when the team played in the Georgia Dome. Merchandise sales are up 20%, and average number of items per transaction up 20%.

Tim Zulawski, president of AMB Sports and Entertainment, the Falcons’ umbrella company, told Front Office Sports the team sells more food in its stadium now prior to kickoff than it ever did before during a whole game. 

“We are No. 1 in the NFL as it relates to our food and beverage experience and we have historically been one or two in the NFL for the collective fan experience,” Zulawski said. 

In September, Utah Jazz and Utah Hockey Club owner Ryan Smith announced that fans would have to pay only between $2 and $3 for five of the Delta Center’s most popular concessions, which included nachos and ice cream from Farr’s, a local company. 

And this week, Suns owner Mat Ishbia announced a value menu for fans that reduced prices for hot dogs, soda, chips, popcorn, and water down to $2 each, slashing their original prices by as much as 77%. (A 16-ounce bottle of Dasani water went from $8.50 to $2.) 

The Suns did not reply to a request for comment on whether their new $2 menu was at all inspired by the Falcons.

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