Jonathan Doughty is a global thought leader, consultant, speaker, moderator and C-suite executive in the foodservice and leisure sectors working around the world in retail, transit and leisure. In this issue, he speaks about the impact major global sporting events have on the restaurant industry.
Sporting events have a profound influence on various sectors of the economy, with the restaurant industry experiencing some of the most significant impacts. Major sporting events, such as the Super Bowl, World Cup and the Olympics, create unique opportunities for restaurants to capitalise on the excitement that surrounds these occasions. This article explores the multifaceted impact of sport on the restaurant industry, highlighting increased revenue, changes in consumer behaviour, promotional strategies and the broader economic implications.
One of the most immediate effects of major sporting events on the restaurant industry is the surge in revenue. During these events, restaurants often experience a significant increase in foot traffic as fans gather to watch games, share in the excitement and enjoy food and drinks. For instance, the Super Bowl is known for driving record sales in restaurants, with many establishments reporting a spike in customers seeking a communal and shared viewing experience.
Sports fans often prefer to watch games in lively environments where they can share the experience with fellow enthusiasts. We saw this with the recent European Football Championships with many cameras focused on fan zones, BoxPark and other shared spaces. This communal aspect leads to larger groups dining out, increasing order sizes and average spending per table. Restaurants that promote special menus or deals during these events can further enhance their revenue. For example, many establishments offer wings, nachos and beer specials tailored to the occasion, enticing customers to dine out rather than stay home.
Major sporting events also lead to shifts in consumer behaviour and dining preferences. Many fans opt for casual dining experiences during these events, gravitating towards bars and restaurants that provide a relaxed atmosphere and large screens for viewing. This trend benefits sports bars and casual dining establishments, which can adjust their offerings to cater to the demands of fans looking for comfort food in an exciting environment.
The timing of major sporting events presents restaurants with a unique opportunity to implement targeted promotional strategies.
Moreover, the influence of social media cannot be overlooked. Fans often share their experiences online, posting pictures of their meals, drinks and the game atmosphere. This digital sharing can amplify a restaurant’s visibility, attracting more customers who want to replicate the experience they see online. As a result, restaurants are increasingly investing in creating Instagram-worthy environments and dishes, knowing that a strong social media presence can drive foot traffic.
The timing of major sporting events presents restaurants with a unique opportunity to implement targeted promotional strategies. Effective marketing campaigns can significantly enhance a restaurant’s visibility and attract new customers as well.
Furthermore, restaurants can leverage digital marketing to reach potential customers. Social media platforms, email marketing and targeted ads can be utilised to promote special offers and events, ensuring that fans are aware of their options when choosing where to watch the game. These events can stimulate local economies, with restaurants playing a crucial role in that dynamic. Increased foot traffic not only benefits restaurants but also nearby businesses, such as retailers and entertainment venues, creating a ripple effect throughout the local economy.
Cities that host major sporting events often see a boost in tourism. Visitors flock to these locations to experience the event, leading to increased demand for dining options. Restaurants in host cities can capitalise on this influx by offering unique dining experiences that highlight local cuisine and culture, further enhancing their revenue streams. We have yet to see the final numbers from Paris and the recent Olympics, where the feedback has definitely been mixed.
While the impact of major sporting events on the restaurant industry is largely positive, it is essential to acknowledge the challenges that can accompany this increased demand. Staffing becomes a critical issue, as restaurants must ensure they have enough employees to handle the influx of customers. Additionally, supply chain challenges can arise, particularly for popular menu items that see a surge in demand.
Moreover, competition among restaurants intensifies during major sporting events. Establishments must differentiate themselves through unique offerings and exceptional service to attract and retain customers. The potential for over-promising and under-delivering can lead to negative reviews, which can be detrimental in the age of social media.
So, lets “knock it up a notch” and think about sports on the GLOBAL stage. Of course, a major event in a city has a profound effect, whether it is driving away the locals for the duration or pulling in travelling fans across the whole of a country for several weeks of a tournament competition. The impact is massive, focusing screens on the country in question.
The issue is not the sport, but the money behind the sport, as we are now seeing in the world. Those with deep pockets or seemingly endless funds can attract and draw sporting events to new locations by providing levels of funding, support and sponsorship never seen before. But actually, this is not a new phenomenon. The numbers are getting bigger, but the Formula 1 circus grew and expanded into countries that could host with new, exciting circuits, legendary boxing matches took place in Zaire (now the Democratic Republic of Congo) and the 2034 World Cup will be taking place in Saudi Arabia.
One thing is for sure, the focus on sport, as a global influencer, is certain for many years to come as countries compete for global recognition and tourism.
