In an era where attending live sporting events often comes with a hefty price tag, the Atlanta Falcons’ Mercedes-Benz Stadium is defying the trend, particularly when it comes to food costs. A standout example is their incredibly affordable $2 hot dog, a price point that’s making waves across the NFL and beyond. This isn’t just about cheap eats; it’s a deliberate strategy rooted in fan experience and smart business. Let’s delve into why the Atlanta Mercedes-Benz Stadium cost structure, specifically for concessions, is a refreshing change of pace for sports fans.
The philosophy behind these budget-friendly prices is what Falcons CEO Rich McKay terms “street pricing.” The goal is to mirror the affordability fans might find outside the stadium, rather than inflating prices once inside. This approach is a direct response to fan feedback. Prior to the stadium’s opening in 2017, market research revealed a major pain point for fans at the old Georgia Dome: the exorbitant cost of food and beverages. Fans expressed feeling compelled to eat before even arriving at games to avoid stadium prices.
Mercedes-Benz Stadium took this feedback to heart. Initially launching with $2 hot dogs in 2017, they further reduced the price to $1.50 in 2019 when concessions went cashless, streamlining transactions and eliminating the need for coin change. Recently, to adjust for general inflation, the price was slightly increased back to $2. However, even at $2, these hot dogs remain the most affordable in the entire NFL, according to NBC Sports’ Peter King. Importantly, these aren’t low-quality options; they are the same beef hot dogs supplied by Levy Restaurants to numerous other NFL stadiums, ensuring consistent quality across venues like Arrowhead Stadium and Levi’s Stadium.
This $2 price tag isn’t limited to Falcons games. It extends to every event hosted at Mercedes-Benz Stadium, whether it’s an Atlanta United FC soccer match, a high-stakes College Football Playoff game, or even a massive concert like Taylor Swift’s. This consistent, affordable pricing across all events underscores the stadium’s commitment to fan-first values.
Since opening, Mercedes-Benz Stadium has sold an astounding 1,364,761 hot dogs up to August 2023, including 170,311 in the 2022 NFL season alone. This high volume demonstrates the popularity of the affordable options. While the profit margin per item is lower, the overall volume significantly increases revenue. As McKay notes, “Our volume is much higher than other stadiums and certainly higher than what we had at the dome.” He also points out that despite the low prices, “Food and beverage for us is still a profitable venture.”
The Mercedes-Benz Stadium’s approach echoes the strategy of retail giants like Costco, famous for their loss leader hot dogs. While McKay stops short of calling the stadium’s hot dogs a “loss leader,” the principle is similar. The attractively priced hot dogs and other menu items encourage fans to spend more overall. McKay highlights, “Maybe that drives their spending habits… The per capita spending of each individual is very comparable if not higher than many other stadiums.”
Beyond hot dogs, the “Fan First” menu boasts a range of affordable choices: $2 refillable Coca-Colas, $3 waffle fries, $5 Bud Lights, $2 Dasani water bottles, $2 popcorn, $3 pizza slices, and $5 cheeseburgers. These price points collectively contribute to a family-friendly atmosphere, directly addressing the pre-opening survey feedback. Families now feel they can afford to feed their children at the stadium, enhancing the overall game day experience.
In conclusion, the Atlanta Mercedes-Benz Stadium cost strategy, particularly regarding its concession prices, is a successful model. By prioritizing fan affordability and volume sales over high per-item profits, they have created a winning formula. The $2 hot dog is more than just a cheap meal; it’s a symbol of the stadium’s commitment to an enhanced, accessible fan experience, proving that sometimes, less is truly more.
