Paul McCartney’s still got it.
I saw his “One on One” tour a few months back. And I’ll tell you, at 75-years-old, this guy can still rock-n-roll.
I saw the show at the Barclays Center, in Brooklyn. Barclays is an impressive venue — not just for hearing music, but for eating and drinking.
Its food options include a Mexican place called Calexico, a Southern place “straight from Nashville” called Carla Hall, and an Italian place called Parm.
The thing is, when you get a chance to hear one of the Beatles live, you don’t want to be waiting in line for a taco for twenty minutes. So even though I was starving, it pained me to consider leaving my seat.
Eventually, I decided to make a run for it. But after spending 10 minutes in line — and making it only halfway to the counter — I heard McCartney start playing the first few notes of my favorite Beatles’ song: Blackbird.
I had no choice. I bolted out of line and raced back to the show.
Bottom line: I loved the concert… but I left hungry.
But recently, I came across a solution to this problem...
And not only could it put a beer and a taco in your belly the next time you go to a show…
But it could put some serious dollars in your pocket.
45% of Fans Abandon the Line
Every year, millions of fans attend live events in the U.S.
For example, more than 73 million fans attended a Major League Baseball game last year. And more than 17 million fans attended a regular-season NFL game.
The thing is, most of these fans experience the same problem that I did:
Horrible lines at the concession stands!
A 2016 survey by Oracle Hospitality showed that the average wait time for a concession in the U.S. was 30 minutes.
That’s why 45% of fans abandon the line, just like I did.
If wait times were cut in half, U.S. fans said they’d spend an additional $20 for food and beverages. And just imagine what they’d spend if lines were eliminated entirely.
The thing is, the Oracle study also found that 64% of fans would use “in-seat ordering” if such a service were offered.
Given these statistics, it really makes you wonder:
Why isn’t someone working on an app for “in-seat ordering”?
Well, as it turns out, they are…
FanFood is a mobile platform that allows event-goers to order food and beverages right from their seat.
Its app looks like Grubhub or Seamless — basically, it’s an electronic menu you can view on your mobile phone — but instead of delivering food to your front door, it delivers concessions to your seat.
Users download the FanFood mobile app for free. Then they browse the menu, get their order delivered to their seat, and pay directly from their smartphone. (Users pay a $1 to $3 up-charge per item.)
It’s a great idea — and it seems to be catching on…
FanFood has already signed up Avaya Stadium (home of the San Jose Quake), the Circuit of the Americas raceway (home to a 2017 Formula 1 Grand Prix), and two music venues (Austin 360 and Seven Flags Event Center).
Since May 2017, the company has generated nearly $100,000 in revenue.
Because they don’t have to wait in line, customers are more likely to buy food and drinks — and as it turns out, they’re more likely to order multiple times.
For example, at a recent concert in Austin, 83% of FanFood users ordered twice, and their total spent was about $31, compared to $19 at the traditional check-out line.
This is a great for fans, great for the venues, and great for FanFood, too:
On a $20 order, FanFood generates roughly $5 for itself.
The Pros and Cons of an Investment
Now FanFood is seeking to raise capital so it can grow more quickly.
The valuation is $3 million, and the minimum investment is $100.
Should you consider an investment?
There are plenty of “pros” — including a huge market, early signs of traction, and significant “exit” opportunities where early investors could make profits.
But there’s a big “con” to consider, too:
Other companies in this fast-emerging sector include Qkr!, Tapin2, and VenueNext.
VenueNext is backed by entertainment giant Live Nation and Twitter, and it’s already worked with some of the biggest venues in the U.S., including Yankee Stadium in New York; AT&T Stadium, which is home to the Dallas Cowboys; and Churchill Downs, home of the Kentucky Derby.
With adaptable technology and low installation costs, FanFood believes it can fend off the competition, create a successful business, and deliver big returns to its early investors.
And as avid concert-goes, eaters and drinkers, we wish it the best…
But if you’re contemplating an investment, keep in mind that this company is up against some serious competition — so be sure to do your research!
If you’re interested in learning more, click here:
Please note: Crowdability has no relationship with FanFood, or with any of the companies or platforms we write about. Crowdability is an independent provider of education, information and research on start-ups and alternative investments.