Feature Article - October 2009
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Money Matters

Tips for Expanding Your Food Service & Concession Profits

By Emily Tipping

Summing Up

You can run your concession stand simply and easily. It does not require a lot of upfront investment to add items that will draw customers by the droves. Often the cost of the investment will be paid off in one or two busy weekends.

And if you don't want to bother with it, it's also fairly simple to just let someone else do it. Then you can get all the benefits of their marketing efforts without trying to become an expert marketer yourself.

Whichever way you go, whatever it is you want to get from your concession operation—funding to support your youth sports teams, an extra boost to your bottom line so you can offer extra programming to the community at a low cost or even profit potential—you can take small steps to reach that goal.

New Item Checklist:

Here is a checklist of basic questions to ask when considering the addition of a new menu item:

  • Will the new item compromise sales of other menu items?
  • Will sales of the new item be comparable in profit percentage to the average menu mix?
  • Will you need to eliminate an item to make room for a new one? (If so, compare the profits of each.)
  • What skill level is required to prepare the item?
  • Is it easy to gauge the production of the new item? In other words, can your staff economically make a few for slow periods and rapidly expand to keep up with periods of high demand?
  • What are the inventory requirements? What logistical problems are involved?
  • Is there dependable service and support for the equipment nearby?
  • How well has this item worked out for a location like your own? Is this documented?
  • Can you have a short test period or trial to prove that the item works?

Source: Gold Medal Products Co.