The total operator retail sales for the recreation segment (which includes sports and concessions) were approximately $9.1 billion in 2020—a $13.9 billion decrease from 2015. The segment was dramatically impacted as movie theaters closed, sports teams postponed their seasons and stadiums were closed to spectators in response to the pandemic. By 2025, the segment is expected to rebound, bringing the total operator RSE to $27.4 billion.
Based on its foodservice sales, gaming and casino businesses feature prominently among the top companies in the recreation segment. Gaming and casino businesses offer a wide variety of dining options—ranging from delis to extravagant buffets to multiple full-service restaurants within the location.
Examples: MGM Resorts International, Caesars Entertainment Inc., AMC Entertainment Inc., Cinemark USA Inc., Carnival Cruises, Compass Group (management firm for arenas/stadiums)
Key Segment Trends
- Recreation operators, especially those based in stadiums/arenas and cruises, are featuring partnerships with local or famous chefs.
- Street-food inspired options are becoming increasingly more common among recreation operators, especially those based in stadiums/arenas.
- Stadiums and arenas are offering more flexible dining formats to generate revenue during the pandemic. But these takeout and delivery options could have staying power.
- Sustainability messages are becoming increasingly important for recreation operators.
Key Decision-Makers
- Foodservice
Directors—Recreation facilities that are managed by an FSM will tend to have a vice
president or director of food and beverage who runs the foodservice operations.
- Facility
Procurement—Depending on the setup of the recreational operation (and whether
it is self-operated or not), procurement departments may get involved in
negotiations and final approval.
- Owners—Many smaller recreational venues (e.g., bowling alleys, smaller museums, performing arts centers, etc.) may have ownership (or an ownership committee) that gets involved in some of the larger capital investment spending.
- Design Consultants—Particularly on new projects and major renovations or remodels, larger recreational venues such as convention centers or major theme parks will defer to design consultants on brand and equipment specification.
Role of Equipment Within the Segment
- Operators
possessing specialized equipment—spits, wok ranges, tortilla makers and chip
warming cabinets—will be able to meet expectations about street foods
- The increase in chilled and frozen drink offerings by recreation operators indicates a need for refrigeration equipment that can be used for storing and preparing such beverages.
Download In-Depth Recreation Segment Report here
