Why Hot Dogs At Atlanta Falcons Games Cost Just $2

In this climate of rampant inflation and escalating costs to attend sporting events, a hot dog at an Atlanta Falcons game costs just $2.

“We tried the concept called ‘street pricing,’” Falcons CEO Rich McKay exclusively shared. “The object was to try and resemble more what it would look like on the outside as opposed to just what it would like on the inside of the stadium, where it could be marked up.”

That pricing strategy in Mercedes-Benz Stadium is in response to market research the Falcons conducted prior to opening their new stadium in 2017.

From fans at their old Georgia Dome, the resounding complaint was the high cost of food.

When Mercedes-Benz Stadium opened, the hot dogs were priced at $2, but once the concessions went cashless in 2019, the team didn’t need to worry about change in the form of coinage slowing down the transaction process and dropped the price to $1.50.

To account for inflation, the Falcons recently raised their hot dog prices to $2 (not including tax), but, according to NBC Sports’ Peter King, that’s still the cheapest price in the NFL.

And the $2 beef hot dogs are the same as those supplied by Levy Restaurants to its many other NFL stadium clients, including Arrowhead Stadium, Ford Field and Levi’s Stadium.

That $2 price not only applies to before and for the entire duration of Falcons games, but also to any event at Mercedes-Benz Stadium, including Atlanta United FC, College Football Playoff games or Taylor Swift concerts.

“We don’t want to upsell for any single event,” said McKay, who is also CEO of Arthur M. Blank Sport + Entertainment (AMBSE).

Since Mercedes-Benz Stadium opened, it has sold 1,364,761 hot dogs (as of August 2023), including 170,311 during 2022, its last full NFL season.

“Our volume is much higher than other stadiums and certainly higher than what we had at the dome,” McKay said. “Food and beverage for us is still a profitable venture, but clearly our profit level per item is much lower.”

The affordably priced hot dogs make one think of Costco Wholesale
COST
.

That wholesaler has become famous for its hot dogs, which serve as a loss leader. That means Costco’s hot dogs are sold below market cost, but it actually helps stimulate other sales of more profitable goods by luring the customer in.

McKay wouldn’t go so far as to call the Mercedes-Benz Stadium hot dogs a “loss leader” but did note how much the average Falcons patron buys despite the cheap hot dogs.

“Maybe that drives their spending habits,” he said. “The per capita spending of each individual is very comparable if not higher than many other stadiums.”

Though hot dogs are a signature food, other affordably priced items on the Fan First menu include $2 refillable Coca-Colas, $3 waffle fries, $5 Bud Lights, $2 Dasani water bottles, $2 popcorn, $3 pizza slices and $5 cheeseburgers.

With those kind of price points, the Falcons pride themselves on having created a family-friendly atmosphere.

That’s partly a reaction to the survey responses they received during the construction of Mercedes-Benz Stadium. Many families said they previously had to eat before going to games because the in-stadium prices were so high.

“That made no sense,” McKay said. “We certainly should have an environment, where the kids can have something to eat.”