Concessions by the Numbers, Kathy Ross

Concessions by the Numbers

Kathy Ross, CCE, NICA Director

Recently I had the pleasure to be invited on Marla by the Numbers, the podcast hosted by Marla Calico, CFE, IAFE President and CEO, where we discussed “Five Things to Know About the Mobile Concession Business.” She introduced me by saying, “You’ve been a great advocate about the importance of having a great working relationship between our Concessionaires and our Fairs. We want to focus today on five key things that will help us have better communication, because we are all in this together!”

Communication

Any successful relationship starts with communication. If we can’t communicate freely and openly and share our thoughts and concerns, then success is not going to be there. When you take the number of experienced years on your grounds, you have hundreds of years of Fair experience. We are very willing to share our experiences, positives, negatives, “have you tried,” and “maybe we can!” It’s funny, I just had a conversation with a new Fair Manager and we helped to solve two problems. Just that simply. “Well, have you tried this?” You may get so used to seeing your Fair as the way it is, but we see it differently. Are there small changes that you think aren’t going to impact anybody, like moving a Senior’s Day from one day to another? Whether it is a labor or supply issue, those small changes really do impact us and we need to know those things.

Marla asked, “So what have you seen in the Fairs that keep those lines of communication open?” Communication Committees. The thought process is that you take some trusted Concessionaires-—your Commercial Exhibits and your Food Concessions—possibly your grounds guy, your electrician, and your Concession Manager. Gather, wherever that may be, whether it is a picnic table, an office, offsite, or a Zoom meeting. Just have an open conversation about what the concerns are: your concerns for us and our concerns for you.

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Kathy Ross Ross Concessions

IAFE Director at Large From Associate Members

NICA Director Past President

Things are changing. Infrastructure in all facets is an issue. With the new trailers that are coming out, they are fitting more equipment in it which requires more power. Our support vehicles are carrying more refrigeration so we can carry more stock. Our house trailers are just coming out of the factory needing 50 amps. Basic power is an issue across the board. Getting into the technology part of it, we are all requiring more internet bandwidth with equipment for cash registers, credit card processing, ticketing, and scanning. For example, we were at a big Fair this Fall and none of our credit card processors would work. It is frustrating for us and it is frustrating for our customers. If it were a percentage Fair, it would be an issue with the income. It’s across the board and we see it pretty much every Saturday night unfortunately.

Transfer of Ownership

I would like to retire someday. Without having a transferable contract, the value of our business is scrap metal. NICA and IAFE have developed the white paper on Transfer of Ownership. I think the next conversation about that is a “Multi-Year Contract for Independent Concessionaires.” Your ride companies have had multi-year contracts for years. We would like the same courtesy. There are not a lot of young folks coming up into our Industry, so being able to transfer an established business to someone else has huge value for us.

Rent & Rent Structures

It isn’t easy. With the rising costs of our products and needs, that brings into it the whole issue with sourcing our stock and getting the things we need. The pie can only be cut so many ways. If you want to have your businesses continue to upgrade and wrap their trailers, buy new uniforms, buy new flags... the rent structures need to be discussed. What does your rent include? Does your rent include the admissions to the Fair for the Vendors and their employees? Does it include their stock vehicle rent and their electric? Does it include their house trailer and bunkhouse? Understand that extra fees are part of the rent and it becomes a financial concern. If you have a large turnover at your Fair, you may have some issues with your rent structure or in general. Your Fair Vendors want to be there. Ask them “Why did you leave,” and “What was the issue?”

In addition, Marla added, “There was a lot of discussion during the last couple of years on the deposit structure as well as the timing of deposits. That typically comes when you are not generating income. These are the types of things we really need to be communicating about with our Fairs.”

Sponsorships

When you are negotiating sponsorships, consider the impact to your Vendor. Typically the soda companies are sponsors to the Fairs and they require us to buy their bag-in-the-box. We can usually get them to negotiate our National Account Pricing, but it is the water that they tend to sneak in at a higher cost. Therefore, I have to raise my price to the customer, and that’s who suffers from it. Also, if they want to give away bottled water or a food item, consider using them at an exit gate so that the customer has something to take home, which could be greater for that sponsor.

Focusing on the Customer

Through 2021 and now in 2022, we are seeing activities on the grounds we have not seen in the past with the youth. Please don’t cut security if you have to cut something. We want everyone to feel safe and comfortable when coming to our Fair.

In the end, I want to focus on the customer, because if it weren’t for them, none of us would have a job. So, anything that you feel lessens the guest experience is something that we shouldn’t do. We must be their advocate, as they are “the person not in the room” when we are planning. They are the reason we live and breathe. Let’s hope that weather is our only concern this season! I am very hopeful for a positive 2022.