JGL Consultants interviewed several aquarium and zoo professionals across the country to learn what practices allow them to best manage and maximize earned income from food services, catering, event rental and retail stores. The institutions we interviewed each had a unique perspective and different approach, yet universally addressed the importance of incorporating their mission into these earned income streams. Several interviewees also mentioned the importance of value alignment with their outsourced vendors. All of the interviewees were contract operated, although several had self-operation in their past, including the Texas State Aquarium which transitioned to contract food service operations in late February of 2022. The bulk of our interviewees oversaw earned income from food service and retail, while one of the institutions had these revenue streams reporting to different individuals.
Visitor food, including cafes, restaurants and kiosks are important to the guest experience but can be challenging to manage from a capacity perspective. The ebbs and flows of visitation require active management to maximize revenues and profitability. Michele Smith, Chief Financial Officer of the Woodland Park Zoo, shared that she works closely with the Zoo’s contract food service operator to scale operations according to zoo attendance and time of year. Michele and her vendor use a data driven approach to determine when and how to deploy mobile carts throughout the Zoo. Rick Johnson, Director of Finance and Administration at the Seattle Aquarium, noted the Aquarium does not have excess space in which to deploy carts, but characterized the new outdoor dining outlet on the Aquarium’s deck, debuted in 2019, as very successful and a good solution to heavier summer visitation. Justin Sefcik, VP of Operations at the Texas State Aquarium, noted that satellites drive additional revenue but can also serve as a “relief valve” on busier days. Evan Barniskis, Associate Vice President for the Aquarium at Mote Marine Laboratory, noted the Aquarium does not have satellite options at their existing facility but does expect to utilize them once the new Mote Science Education Aquarium opens in several years.
Rick shared that the metrics the Aquarium tracks from a visitor food perspective are the per capita sale and net concession revenue. Michele tracks the per capita sale, top sellers, check average and more recently has been studying price elasticity utilizing data from her vendor. Justin Sefcik, VP of Operations at the Texas State Aquarium, just recently converted from self-operation of all visitor food and catering to a contract operation. He shared that when the Aquarium was self-operated they did track the per capita sale by station but he expects to develop new metrics to track with their contract vendor. Evan shared that the Mote has not historically tracked many metrics except revenue because visitor food has not been a meaningful source of earned income but he anticipates that will change in the future.
The Woodland Park Zoo, like most visitor attractions, started rolling out technological solutions during the pandemic as a way to remain contactless. Michele has seen “a 50% increase in the use of technology throughout the zoo, including the use of QR codes”. The Woodland Park Zoo is now 99% digital and has no plans to go back. Michele shared they have seen significant increases in check averages as a result of the use of technology – in some case by as much as 50%. The Texas State Aquarium’s new food service vendor just recently introduced mobile ordering. They have QR codes on the website, on maps, in on program schedules and located throughout the facility. The staff love it and Justin has found “more of an early adoption among leisure travelers than expected”. While no hard data exists yet, Justin is positive about the potential. Tera Greenwood, VP of Business Development for contract operator Service Systems Associates, confirmed SSA has seen guests on average spend “38% more when ordering from a kiosk & 68% more when ordering from a mobile device”. The Seattle Aquarium has implemented pre- order technology in the last few months and does not yet have results but Rick has heard anecdotally that Aquarium staff appreciate the ability to order in advance. The Seattle Aquarium is also utilizing the strategically placed QR codes throughout the facility to “counter the challenging location of the café”. The Mote will be incorporating technology in their new café and it excited about the potential.
Event rentals can be an important source of earned income for many aquariums and zoos. Generating this revenue requires the right sales and marketing structure. Every institution handles sales and marketing of event rentals differently. While all interviewed noted the collaborative approach with their food service vendors, two of the interviewees have charged their vendor with the sales and marketing effort. Evan shared that sales and marketing at the Mote is a shared effort between the event rental and marketing teams. The Mote’s internal marketing team handles all social media and advertising while the event rental team handles the balance. There is no one correct answer that will meet every institution’s needs. It is important to have clearly defined booking policies, particularly if the vendor is booking events. Regardless of the option your institutions selects it is important to make sure event rentals are prominently featured on the institutions website and to mystery shop the event sales team from time to time to check responsiveness and the quality of sales collateral.
The Woodland Park Zoo actively seeks event rentals and Michele characterizes the income as important to the Zoo. With its Seattle location, the Zoo’s corporate clients include Facebook, Amazon and Google, all of whom are interested in outdoors locations and the Zoo’s conservation message. Michele, who focuses on driving revenue on a daily basis, said she “is always looking to recreate an extraordinary experience that delivers the wow and ties to conservation to inspire people to make an action”. Rick shared that the Aquarium too, is focused on aligning its conservation message across all revenue streams. The Aquarium’s vendor added the purchase of carbon offsets to its catering menu recently and has found strong guest interest.
Michelle shared that the Woodland Park Zoo now pursues buyouts which have become significant revenue drivers. In 2019, the Zoo hosted one corporate buy out and in 2022 they will have three. Michelle said “each buyout represents one weeks’ worth of revenue for the Zoo”. She also noted there are sponsorship and donation opportunities associated with these buyouts.
On the retail store front, most interviewees tracked metrics with their vendor on a regular basis. Michele reviews monthly key performance indicators with her retail vendor including capture rate, check average, product mix, and top sellers. Michele notes she examines “the whys behind each metric” to understand trends and inform decisions moving forward. Rick has quarterly meetings with his vendor and tracks the per capita sale along with net commission revenue. He shared that “per caps have been amazing recently” and that the Aquarium had several record days this winter. All interviewees expressed the importance of aligning the retail stores with conservation messaging. Actively managing product selection so it reflects the organization’s mission and simultaneously achieves financial goals is a balance all are seeking.
Technology is prevalent in retail operations as well. All interviewees have an e-commerce platform and several have plans to experiment with kiosks and contactless checkout. According to Tera, SSA finds an “89% increase in spending on e-commerce as compared to in-store”.
Everyone who was interviewed is positive about future earned income potential from these revenue streams. Rick is bullish about future revenue growth in all areas. With the upcoming Aquarium expansion, Rick expects “visitorship will increase from 800,000 to 1.2 million.” The new Ocean Pavilion will incorporate timed ticketing and Rick hopes visitors waiting for their entry time will visit the café and retail store. The Aquarium has had a surge in event rental inquiries since mask mandates were lifted. Rick shared the Aquarium has 45 weddings booked for this summer already. Michele has mapped out an “earned revenue plan” for the Zoo and meets bi-weekly with other Zoo stakeholders to ensure the plan is on track. Michele acknowledges the retail store per capita spend has increased in the last two years; she believes with the incorporation of dynamic pricing and strong management these key performance indicators will remain strong. Justin, with a recent move to contract operation, is already seeing improvement in metrics and believes the Aquarium will be better suited to take advantage of previously underutilized assets. Justin and his team are also implementing a plan to increase the volume of alcoholic beverages sold in the café. Evan looks forward to the opening of the brand new Mote Science Education Aquarium; with much higher projected visitation, a well located café and store and a large multipurpose event space, it is likely that earned income in the Mote’s future will be quite different than it is today.
Every institution will have a different approach to managing these earned income streams. JGL has found tracking key metrics or performance indicators on a regularly scheduled basis and an open dialogue with the vendor or internal team are the two pillars upon which successful management of these programs is formed.