Albuquerque, NM

Ken WhitingPresident, Whiting’s Foods at Santa Cruz Beach Boardwalk

Lenny FreundOwner,Freund Family Foods

Food & Beverage Case StudyTuesday, November 13, 2018

Agenda

• Background on IAAPA Case Study

• Review and Process

• Hinkle Family Fun Center

• Recommendations Made

• Actions Taken

• Results

• Q&A

2007 – Elvis Presley’s Graceland2008 – Castle Park, Riverside, CA2009 – Mulligan Family Fun Center, Murrieta, CA2010 – Dutch Wonderland, Lancaster PA2011 – The Efteling, Netherlands

2012 – Funopolis Family Fun Center, Jefferson, GA 2013 – Wild Wadi Waterpark– Dubai2014 – Saint Louis Zoo2015 – Fun Spot Americas – Orlando/Kissimmee2016 - US Space and Rocket Center – Huntsville, AL

2018 – Hinkle Family Fun Center - Albuquerque, NM

January 23: Site VisitFebruary 12: Review &

Recommendations Presented

History of Case Study

Review & Process

• Understand Operating Schedule, Guest Demographics, Length of Stay, Facilities and Menu

• Reviewed Current Results

• Established Benchmarks or Goals

• Recommendations Made

• Implementation

• Results

Overview of Hinkle Family Fun CenterOperating Calendar:Open daily year round (closed Thanksgiving and Christmas Day)

Operating HoursVaries throughout the year and day of the weekOpening times: 10:00 – 12:00Closing times: 9:00 – 11:00 pm

Total Attendance (2017): 100,000 (appx)

Length of Stay: 2.5 Hours (appx)

Comments - Observations - StrategiesGeneral Comments• Guests are primarily coming for Attractions and Entertainment…..and food follows

attractions• Food & Beverage growth is impulse driven….

it’s necessary to encourage those who are already there….to buy more. • Guests come from fairly close to home• Length of stay is short – doesn't require a meal• Good POS reporting• Open Year Round• Kitchen is limited• Physical appearance of F&B location not conducive to growing revenue……or communicate f&b destination.

Strategy• Value• Sell the “Fun”• Unique/Variety/specialty/signature• Quality• Speed of Service• Impulse

Financial Recap and Targets

Attendance: 100,000 (appx)

F&B Revenue - Total $336,006Fun Center: $230,716Lazer Tag: $ 91,208Other $ 14,082

Percent of Building Revenue: 8.80% (Fun Center)6.26% (Lazer Tag)

Per Cap: $3.36 (appx)COG: Fun Center: 31% Lazer Tag: 34%Labor Cost: Shared labor. Not able to measure just F&B labor Cost

TargetPer Cap: $1.00 per person increase (minimum)Facility Revenue: 15% of total ($390,000- Fun Center)

COG: 28%

Operating Principles

Limited Menus (5% Rule)• Menus must be designed for peak sales period and for kitchen capacity.• Variety should not be at one location but rather throughout the location.• Less Is More

Benefits Include:

Improved guest service Food quality

Speed of service Revenue increase

COG improvement Improved operational efficiency

Inventory management Reduced labor hours

Training improves Lower labor cost

Visual Merchandising:Through prep, displays, packaging, menu boards and employee involvement (sights, sounds, smells), create the wow factor.

Signage & Menus:Should represent your core menu and not be confusing. Use of graphics to drive volume on menu items you want to sell more of. Menu placement to be seen prior to placing order.

Set Staff Up For Success:Through simplicity of menus, layout, equipment, policies and procedures.

Create A Signature Item(s):Create products that they can only get from you, and that show well.

Don’t Let Guests Buy Down: Such as Chips and Ice Cream Novelties

Operating Principles

RecommendationsPhysical Changes that would require capital investment:

Kitchen:• Hood Installed• Fryers Installed, and a Funnel Cake Fryer• Auto Fry goes to Lazer Tag• Adjustments made to accommodate pizza prep

Service Counter:• Install larger Dippin Dot Freezer• Two ICEE machines to create Mix It Up Station• Popcorn machine and Pretzel cabinet• Pick up area for parties

Recommendations

Pizza: Sell two types of pizza. √ 16” whole (for Parties & Families)√ 6 inch individual (instead of slices)

This will drive increased revenue over the price of a slice if pizza, and provide value to your guests.

Funnel Cakes: Add a fresh made funnel cake to menu.

Beverages: Your guests will purchase a beverage. Pepsi’s portfolio of beverages is broad. As Carbonated Soft Drinks are flat/reducing in volume, it would be good to test certain types from each brand. Gatorade, Flavored waters, iced coffees and teas and juices are readily available in bottles.

RecommendationsEntrance Bundling: Create F&B options at front gate that can be purchased by guests visiting the attractions area. Offers could include;

√ Vouchers that offer a nominal discount (i.e. $12.00 F&B spending for $10.00)

√ Souvenir Beverage bottle that will include free soft drinks for the day√ Value price for a meal√ Or…Distribute coupons that provide a value to certain menu items, creating a “call to action”

Souvenir Beverage and Popcorn Programs:Souvenir popcorn bucket and beverage bottles with refill value;

√ “Free Refills Day of Purchase”. The value of “Free” drives spending. √ Retail price can be increased to accommodate this. √ Point of Sales Signage for support

Reduce retail price of current souvenir bottle from $8.99 to $6.99

RecommendationsFood and Beverage signage/graphics program: Hire a qualified graphics person who could provide food signage renderings for;

√ pre purchase signs√ directional signs√ line of site signage√ menu boards

That would all enhance impulse spending.

Sell “Fun”

RecommendationsSelf Serve ICEE: Mix It Up StationAt Snack Zone location, create ICEE Mix It Up Station allowing guests to fill their own bottles and create their own color/flavor combinations.

The refill programs with this menu item are an additional value point.

Menu: Would require small tweaking and improvements.

√ Expand frozen beverage program with self serve format√ Add popcorn with seasonings (and a refill program)√ Expand Dippin Dots program√ fresh made Funnel cakes √ Focus on displays, merchandising and signage

RecommendationsDippin Dots:

√ Expand the presence of Dippin Dotsby acquiring larger freezer, and place in main service counter.

√ This would also allow to leveragedessert opportunity by adding menu itemsfrom the Dippin Dot Sundae Shop concept.

Mobile Vending: An effective way to capture revenue, particularly on peak sales days/periods, is to mobile vend key impulse items, such as cotton candy,beverages, and popcorn

Beer/Wine: Consider the addition of beer/wine to your menu. Becominga common practice in FEC’s, and is an attraction for some adults as well asa benefit for any corporate parties.

Recommendations - Core Menu

MealsPizza (individual and Whole)Fries (including several topped or loaded fries)Boneless Chicken Wings (or chicken tenders)Hot Dogs

DessertsFunnel Cakes (fresh made, and also allows for addition fried desserts)

Dippin Dots (including Dot sundae and/or floats)

BeveragesSoft Drinks (with refill program)ICEE (self serve, and with refill program)Draft Beer

SnacksPretzelPopcorn (with a refill program)NachosCotton Candy (currently not sold)

Adding Tagline for Cody’s Cafe

Recommendations - New F&B Cafe Image

Actions Taken

• Menu Items √ Decreased to eliminate slowest of sellers√ Adjusted to leverage the strongest categories for growth

a. Fries and Nachosb. Beverage additions and programs

• Digital Menu Board Layout: Updated and improved• Refill Programs: Both Soft Drinks, ICEE and Popcorn• Self Serve ICEE: Added to front counter• Pizza: Switched to “Individual” from slices, and kept the “Family Size” for parties.

• Cody’s Café given a fresh look…..

Before After

Results (Period of May thru August)

Pizza: Revenue increased over double from prior year

Refill Programs:Soft Drink Souvenir Sales: +88%ICEE Souvenir: -(31%)

overall ICEE Sales: +26%Popcorn: +29% (no refill program in 2017)

Overall Beverage Sales: +32%

Overall Results (Period of May thru August)

Attendance: Flat

F&B Revenue: Up over 25%

Cost of Goods: 28.02% (2017: 31%)

….More to come in the future

Albuquerque, NM

Ken WhitingPresident, Whiting’s Foods at Santa Cruz Beach Boardwalk

Lenny FreundOwner,Freund Family Foods

Food & Beverage Case StudyTuesday, November 13, 2018