More Beer Sales coming to Big Ten

[Turk]

As far as I know, only Minny has beer sales now at their stadium. Last year they claimed they lost money on it. Now, Maryland is going to offer the beer prior to the 4th quarter and on the opposite of the student section.

http://sports.yahoo.com/blogs/ncaaf...o-sell-beer-at-sporting-events-140150354.html

 

[FlintTown]

How do you lose money on booze? The concession folks must have been pounding them.

 

[shakes3858]

How do you lose money on booze? The concession folks must have been pounding them.

Wow, now I know why the economy in Flint is down. You buy a crapload of beer. This is called inventory. You think you have a huge mark up to cover the risk of selling it 7 days out of the year. However, the fanbase is already educated to get drunk before the game by tailgating and feels like the game is the time to sober up so they can drive home. Therefore, Minnesota doesn't sell out their inventory and they're stuck with it.

Additionally, you have your overhead. You're probably no longer using cheap student labor so you have to replace them with vendors. Additionally, there's extra security and insurance you need due to the liability of serving alcohol. You need a liquor license. You have a deal with a food and beverage vendor like Sodexho that is taking a large cut of the revenue, but while sharing the risk. Then you have to outfit the stadium with beer coolers, keg lines.... And of course, the lost revenue from people not buying other stuff.

Am I surprised they couldn't make money on 8 dollar beers? For sure. Do I see the possibility? Yep.

 

[willycat]

As far as I know, only Minny has beer sales now at their stadium. Last year they claimed they lost money on it. Now, Maryland is going to offer the beer prior to the 4th quarter and on the opposite of the student section.

http://sports.yahoo.com/blogs/ncaaf...o-sell-beer-at-sporting-events-140150354.html

Ah, finally a good use of Walker Terrace... A Beer Garden!

 

[NU 71 72 74]

Beer, at B1G games ='s bad idea. Tailgate with it is plenty.

.02

and, Go Cats !!

 

[willycat]

Beer, at B1G games ='s bad idea. Tailgate with it is plenty.

.02

and, Go Cats !!

I haven't heard of any problems at the Minnesota games, have you?

 

[NU 71 72 74]

I have no knowledge of beer issues at Minnesota. I happen to live in SEC territory. Beer thrown at visiting players happens -- I've watched it. Beer dumped on women and kids -- I've watched it. We don't really need beer issues at B1G games-- drink to your hearts' content before and after as I see it.

.02

and, Go Cats !!

 

[willycat]

I have no knowledge of beer issues at Minnesota. I happen to live in SEC territory. Beer thrown at visiting players happens -- I've watched it. Beer dumped on women and kids -- I've watched it. We don't really need beer issues at B1G games-- drink to your hearts' content before and after as I see it.

.02

and, Go Cats !!

I didn't have a beer when I attended the NU game there and likely wouldn't in Evanston but saw none of the issues you mentioned. Besides NU FB could obviously use the money, although I would think that the Evanston City Council and the Ryan Field neighbors would put up a bigger fuss then their Wrigleyville cousins.

 

[dillonpgp]

As far as I know, only Minny has beer sales now at their stadium. Last year they claimed they lost money on it.

Turk, keep in mind that "last year" was 2012 and in the case of Minnesota the loss was probably worth it. When the new stadium was built, part of the state funding mechanism in the legislature required that either alcohol be made available to all patrons in the stadium ( of legal age, obviously), or no one at all.

Minnesota was very keen on alcohol availability being one of the perks in new customers leasing premium seating. Once " all or nothing" became state law, Minnesota faced the additional headache of avoiding underage access and the legal and PR nightmare that could have followed.

Beer at Minnesota football was supposed to grease the way for beer at basketball and hockey as well. I don't know if they have made it that far as of 2015.

 

[FlintTown]

Wow, now I know why the economy in Flint is down. You buy a crapload of beer. This is called inventory. You think you have a huge mark up to cover the risk of selling it 7 days out of the year. However, the fanbase is already educated to get drunk before the game by tailgating and feels like the game is the time to sober up so they can drive home. Therefore, Minnesota doesn't sell out their inventory and they're stuck with it.

Additionally, you have your overhead. You're probably no longer using cheap student labor so you have to replace them with vendors. Additionally, there's extra security and insurance you need due to the liability of serving alcohol. You need a liquor license. You have a deal with a food and beverage vendor like Sodexho that is taking a large cut of the revenue, but while sharing the risk. Then you have to outfit the stadium with beer coolers, keg lines.... And of course, the lost revenue from people not buying other stuff.

Am I surprised they couldn't make money on 8 dollar beers? For sure. Do I see the possibility? Yep.

Alcohol is a huge money maker for every restaurant, sporting event, and business establishment in the world outside of Iran. It raises eyebrows when a school loses money on it. But please continue.

 

[willycat]

Turk, keep in mind that "last year" was 2012 and in the case of Minnesota the loss was probably worth it. When the new stadium was built, part of the state funding mechanism in the legislature required that either alcohol be made available to all patrons in the stadium ( of legal age, obviously), or no one at all.

Minnesota was very keen on alcohol availability being one of the perks in new customers leasing premium seating. Once " all or nothing" became state law, Minnesota faced the additional headache of avoiding underage access and the legal and PR nightmare that could have followed.

Beer at Minnesota football was supposed to grease the way for beer at basketball and hockey as well. I don't know if they have made it that far as of 2015.

I actually thought the reason behind beer sales at the new stadium was because the Vikings will play there for a couple of years and they wanted the alcohol revenue.

 

[shakes3858]

Alcohol is a huge money maker for every restaurant, sporting event, and business establishment in the world outside of Iran. It raises eyebrows when a school loses money on it. But please continue.

EVERY restaurant, sporting event, business establishment in the world? EVERY? You mean that's not one place in the world that has lost money on alcohol sales? You're saying that no establishment (we'll call it "bar") has ever had to close because the profits on the sale of alcohol wasn't not enough to cover the cost of the bartender/waiter/vendor, maintenance, insurance, security, rental/building costs, and COGS?

I recommend to you that you open up a bar. In fact, open up infinity bars because according to you, you can't lose money by selling alcohol. You'll be the richest man in the world!!!!

 

[hdhntr1]

Wow, now I know why the economy in Flint is down. You buy a crapload of beer. This is called inventory. You think you have a huge mark up to cover the risk of selling it 7 days out of the year. However, the fanbase is already educated to get drunk before the game by tailgating and feels like the game is the time to sober up so they can drive home. Therefore, Minnesota doesn't sell out their inventory and they're stuck with it.

Additionally, you have your overhead. You're probably no longer using cheap student labor so you have to replace them with vendors. Additionally, there's extra security and insurance you need due to the liability of serving alcohol. You need a liquor license. You have a deal with a food and beverage vendor like Sodexho that is taking a large cut of the revenue, but while sharing the risk. Then you have to outfit the stadium with beer coolers, keg lines.... And of course, the lost revenue from people not buying other stuff.

Am I surprised they couldn't make money on 8 dollar beers? For sure. Do I see the possibility? Yep.

They are not exactly having to buy the inventory for the entire season at one time. And the only inventory that would be wasted would be tapped kegs. and probably not all of them. TCF stadium has a capacity of a little over 50K so even selling as little as 1 beer to 10% and you get 5k beers and $40k revenues per game. I know I had one when I was there. A keg (typically half barrel) contains about 165 12 oz servings. With larger size servings and waste, still better than 125.. Probable cost about $100-120 per keg. Throw in CO2 and maybe you get a cost of $150 per keg. Hard to believe even with all the ancillary costs that they could not make money unless it was very poorly run or they were counting things as costs that did not belong.

 

[hdhntr1]

EVERY restaurant, sporting event, business establishment in the world? EVERY? You mean that's not one place in the world that has lost money on alcohol sales? You're saying that no establishment (we'll call it "bar") has ever had to close because the profits on the sale of alcohol wasn't not enough to cover the cost of the bartender/waiter/vendor, maintenance, insurance, security, rental/building costs, and COGS?

I recommend to you that you open up a bar. In fact, open up infinity bars because according to you, you can't lose money by selling alcohol. You'll be the richest man in the world!!!!

While not much can overcome gross mismanagement. alcohol sales covers a lot. It is a major profit center at places that sell it. Especially when you sell at the prices they do at stadiums. You have to be awfully poorly rum to lose money under those circumstances.