At the 2019 Masters Tournament this year, fans can purchase egg salad and pimento cheese sandwiches for $1.50 each. In fact, they can buy every item on the menu for less than $60.
According to Steven Salaga, an assistant professor in the department of kinesiology, affordable food and beverages encourage fans to return to this sporting event year after year.
“We have to remember, the total cost of event attendance includes travel and transaction costs, the cost of the ticket itself, as well as any parking, concessions and souvenirs purchased,” Salaga told FOX Business. “So, one way to make the overall experience more appealing to the consumer is to keep the price of these complementary products like concessions low. Not that Augusta has an issue with this, but I think the affordable concession pricing is an appealing aspect of the consumer experience.”
Augusta National Golf Club—where the event is taking place until Sunday—is at the forefront of a trend toward cheaper prices at sports stadiums. Other venues, including the Mercedes-Benz Stadium in Atlanta and Memorial Stadium at Clemson University, also maintain low concession prices.
“I highly doubt Augusta is taking a net loss from their concessions,” Salaga added. “They are trying to generate a profit from the overall operation of the event and concession sales are just one relatively small portion of their overall revenue stream. So, they are probably taking slightly less profit on concessions than they otherwise would if they were pricing higher, but Augusta likely prefers this approach in order to keep the consumer engaged in the product.”
Related links: Department of Kinesiology