Sodexo Live, a food and hospitality company, says food inflation is also hitting the ballpark
Courtesy: Seattle Mariners
Those peanuts and crackers could soon cost you more on the court, thanks in part to food inflation, the CEO of a top hospitality company told CNBC.
“It doesn’t matter what industry you are in, everyone is seeing prices going up and the shortage of certain product lines being an issue,” said Belinda Oakley, CEO of Sodexo Live. “After all, we were no exception in this regard.”
Sodexo Live provides dining and hospitality services at T-Mobile Park in Seattle, in addition to over 200 sports, cultural and entertainment venues across america. helping to ease some inflationary pressures.
Nevertheless, higher costs have forced Sodexo Live to get creative with their menu and food selections.
Sodexo Live is changing some ingredients, mixing suppliers and sourcing more products locally to assist cut costs and avoid passing 100% of the worth increase on to the buyer, Oakley said.
“It’s still going to be an outstanding experience for fans, however it could possibly be more frugal to be certain we do not beat their market prices,” she said.
At T-Mobile Park, the corporate is increasing the variety of value menu items offered, priced between $2 and $4, to a dozen items, up from seven last 12 months.
One big item which will have caused a sticker shock: Pitch Francs, that are also Sodexo Live’s best-selling concession items. Oakley cited higher supply chain costs, including packaging and labor, as the rationale for the rise in meat prices.
Sodexo Live says it is attempting to be more creative with its offerings so customers do not have to pay more.
Courtesy: Seattle Mariners
Nevertheless, in accordance with Oakley, location matters, and costs vary by geographic region. The space between the pitch and the retailer could make an enormous difference, as can market prices. For instance, should you take a look at price list last 12 months for the common price of a hot dog – the West Coast was essentially the most expensive, with the San Francisco Giants charging $7.50.
“California will see a greater cost impact than Indiana,” Oakley said.
Oakley said one other area experiencing severe price pressure is plastics and single-use materials: materials for preparing food that is fit for transport.
“The Russo-Ukrainian war had a huge effect,” she said. For instance, the worth of resin, a key ingredient in the production of disposables, was hit particularly hard.
But on the subject of pricing, the corporate has the long game in mind.
“We’d like consumers to proceed to want these experiences beyond their every day responsibilities and use their discretionary spending to really visit and luxuriate in hospitality,” she said.