After a year of watching games at home on TV, sports fans have returned in droves. One thing fansdon’tlook forward to is standing in line for food and a beer at a game or a concert. Yet, even before the pandemic, research shows that professional sports teams left as much as $20 million on the table annually by not embracing technology to speed up concession lines.
Stadiums make as much as $2 million per gameon concessions, approximately $30 per fan in attendance.Research from Oracleshows that fans would spend 42% more on concessions if lines were cut in half — a theory that was proven at Empower Field atMile High (Denver Broncos),where they successfully cut lines in half and saw a 34% increase in sales. For venues with many games and other events (MLB, NBA and NHL), a 34% increase in concessions revenue means upwardof $20 million annually.
The most promising technology for speeding up concession lines is computer vision. By combining cameras with artificial intelligence, venues can create a checkout experience that is both touchless and instant. Touchless checkout is simple: customers just place goods and items on a tray and complete the transaction using the payment method of their choice. Here are five more reasons stadiums and arenas should consider a transition to touchless.
A Better Fan Experience:Fans came to see the game, not the back of a jersey. That's why AI self-checkout machines are such a valuable addition to any stadium or arena. They allow fans to avoid long lines, get their food and drink quickly and enjoy the game. This not only saves fans time but also enhances their experience. And for those worried about missing out on the social aspect of concessions, don't worry — there are still plenty of opportunities to chat with your fellow fans.
Labor Is Expensive and Hard To Find:In 2022, it’s tough to find quality employees for service jobs, partly because of what is now known as the Great Resignation. The Federal Reserve recently reported 1.7-plus job openings for every unemployed person. More than that, labor is expensive. Touchless checkout not only increases the amount of food and beverages sold per stand, but also lets a single cashier run multiple lanes at once, keeping more stands open. The U.S. Department of Labor says labor costs are the most significant expense for any company. Touchless is an easy way to keep a streamlined workforce and improve customer service.
Make Checkout Effortless:Touchless checkout can ring up 20 different items as easily as a beer and an order of fries. The AI can identify items from virtually any angle and instantly rings them up in a single transaction. It doesn’t need barcodes, consistent packaging, or particular orientations to work correctly — which turns retail checkout into a more efficient and cost-saving operation. Customers simply place their items, pay and move on. And if customers can get something quickly, they are more likely to order more often.
Customer Behaviors Have Changed:Certain behaviors changed forever during the height of the pandemic and may never return. Most people think standing in line is outdated. During the pandemic, people were told to maintain at least six feet of distance from each other and to avoid crowds. Even in Britain, where orderly lineswere custom, lines are now thought of as a thing of the past. People want to gather again and return to pastimes like games. They don’t want to wait in line. Touchless systems keep customers and employees safe while decreasing checkout friction and time spent waiting in line to pay. Less time in lines means less time near others, particularly people who would normally be shouting orders.
The Tech Is Ready To Go:Some companies want to eliminate checkout via surveillance-powered, no-checkout stores, like Amazon Go. However, these services require expensive implementation costs, often taking months. Companies willing to give touchless checkout a try get the best of both worlds. Lines go down, and the cost and hassle of no-checkout technology are avoided. Touchless checkout can also be implemented with minimal wait time or headaches and quickly provides a return on investment.
As people worldwide return to the “new normal,” there will be plenty of changes. One thing that must change is their customer experience when they attend a large event. Losing a half-hour of a sporting event you paid to attend in person because of waiting in line should not be an expected part of leisure time. Arenas shouldn’t view a “$20 million hot dog” as part of their standard operating costs. Instead, some simple yet cutting-edge tools can revitalize stadium and arena sales and ensure fans can spend time doing what they paid for: watching a game.
Editor’snote:Smart self-checkout systems from Amazon, Zippin,Mashgin andSpotOnare increasingly popular in stadiums around the country withhundreds of kiosks deployed. Zippin can be found atAllegiant Stadium in Las Vegas. SpotOn and Mashgin are both present at Empower Field atMile High.
Mukul DhankharisCTO and co-founder ofMashgin, a touchless checkout system designer and manufacturer.
As a seasoned technology enthusiast and expert with a profound understanding of the intersection between artificial intelligence, computer vision, and their applications, I have closely followed the rapid advancements in these fields and their real-world impact, particularly in sectors like sports and entertainment.
The article underscores a critical aspect of fan engagement in sports venues and concerts — the efficiency of concession lines. The evidence presented aligns seamlessly with my knowledge of the transformative role that technology, specifically computer vision and AI, can play in optimizing these experiences.
Let's break down the key concepts discussed in the article:
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Impact of Technology on Concession Revenue: The article begins by highlighting the resurgence of sports fans after a period of watching games at home due to the pandemic. It emphasizes that sports teams missed out on significant revenue, up to $20 million annually, by not leveraging technology to expedite concession lines. This aligns with the broader trend of integrating technology into various aspects of live events to enhance the fan experience.
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Financial Implications of Concessions: The financial importance of concessions is emphasized, citing that stadiums make as much as $2 million per game on concessions, translating to approximately $30 per fan in attendance. This sets the stage for the argument that optimizing the concession process can lead to substantial revenue increases.
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Research on Fan Behavior and Spending: The article references research from Oracle indicating that fans would spend 42% more on concessions if lines were halved. This statistic is reinforced by a real-world example at Empower Field at Mile High, where a 34% increase in sales followed a successful initiative to reduce lines. Such insights into fan behavior demonstrate a data-driven approach to decision-making in the sports and entertainment industry.
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Role of Computer Vision in Concession Optimization: The central technology discussed for streamlining concession lines is computer vision. By combining cameras with artificial intelligence, venues can implement a touchless and instant checkout experience. This involves fans placing items on a tray and completing transactions using their preferred payment methods. The article positions computer vision as the most promising technology for this purpose.
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Reasons to Adopt Touchless Checkout: The article enumerates five reasons stadiums and arenas should consider transitioning to touchless checkout, emphasizing a better fan experience, the challenges of labor availability and cost, effortless checkout, changing customer behaviors post-pandemic, and the readiness of the technology for implementation.
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Examples of Successful Implementations: Real-world examples of successful implementations are provided, citing Empower Field at Mile High (Denver Broncos) and mentioning smart self-checkout systems from companies like Amazon, Zippin, Mashgin, and SpotOn. These examples serve as evidence of the feasibility and popularity of touchless checkout systems in large venues.
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Editor's Note and Industry Presence: The editor's note highlights the increasing popularity of smart self-checkout systems in stadiums, with specific mentions of companies like Zippin, Mashgin, and SpotOn and their deployment in venues such as Allegiant Stadium in Las Vegas and Empower Field at Mile High.
In conclusion, the article makes a compelling case for the integration of touchless checkout systems powered by computer vision in sports stadiums and arenas, backed by evidence from industry research, real-world examples, and the broader technological landscape. As someone deeply immersed in this domain, I am confident in the transformative potential of these technologies to reshape the fan experience and enhance revenue streams for sports and entertainment venues.
