Revenue / 11.11.20
New Concessions Add-On: Sales Tax
VenuesNow (11/05/20) Muret, Don
Concessions at sports venues are more often tacking on the sales tax to the listing price, effectively increasing the cost to fans. The pandemic has spurred teams and their third-party providers to expedite the removal of cash payments for concessions, as a safety protocol to prevent the spread of germs from handling cash. When cash was previously accepted the sales tax was usually bundled into the price listed for food and drink, but with new mobile point-of-sale systems deployed at many venues, it has become a separate line item. This means the concessionaire and the client can potentially earn up to 10% more on certain items. "The concessionaires don't like to talk about it, but what they're saying (privately) is this whole COVID thing is costing us a lot more money, so we have to look at everything we can to try and recoup that," said food and retail consultant Chris Bigelow. The Green Bay Packers are one team that does not practice this business model, with Lambeau Field director of hospitality and development Charlie Millerwise explaining "it's a matter of how you approach your concessions pricing. We wouldn't want to hit fans with an extra 5.5% on top." Food Service Matters CEO Mike Plutino added that the issue partly stems from the elimination of receipt printers under some point-of-sale systems, and fans may not see the tax until they get their credit card bill.
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Tags: Concessions , News , Stadium , Venues , COVID-19 , Coronavirus