Black Friday and Cyber Monday shopping events are at the front of retailers' minds as more Americans seek out and spend on experiences. Experience spending has been through the roof as many consumers are willing to spend more on in-person events like Taylor Swift's Eras Tour concerts. According to JLL's 2023 Holiday Shopping Survey, shoppers plan to spend 13.8% less on gifts and other holiday merchandise.

Sodexo Live! North America CEO Belinda Oakley joins the Live show to discuss the hospitality space and how consumers are willing to spend more when they are physically present at live events and stadiums.

"I think what's interesting, and we're seeing it in our venues, revenues are up close to 7%, 8%. Interestingly, it's not about the cost of the average transaction that's driving that, it's actually about the number of transactions," Oakley explains. "It's people wanting to take advantage of more experientially while they're in a venue or event, so they're going more often."

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Video Transcript

AKIKO FUJITA: Belinda, this summer, we've been talking a lot about the success of Taylor Swift as well as Beyonce, these concerts. Consumers really wanting to get out and experience something. At the same time, though, we have learned increasingly that there's a limited amount of money, right, that they have to work with. I wonder what you're seeing in some of the stadiums you work with about a consumer's willingness to spend at an event. How have you seen that change up?

BELINDA OAKLEY: Yeah, absolutely. And it's funny you mentioned Taylor. If it's not a day ending in why we're not being asked about our Taylor Swift shows, we have a number next year. So it's certainly the event on everybody's tongue.

I think what's very interesting, and we're seeing it in our venues, revenues are up close to 7% - 8%. But interestingly, it's not about the cost of the average transaction that's driving that. It's actually about the number of transactions. It's people wanting to take advantage of more experientially while they're in a venue or an event. So they're going more often.

Now autonomous styles of service are helping to drive that throughput, as people are able to get a break, go and get either an amazing lavender haze cocktail, or pick up something from the snack bar, and still get back to their seats without missing the show. So we aren't seeing this slow in average spend. What we are seeing is an increase in number of visits to a food or a beverage outlet while at a venue.

I think to your point, what will we continue to see in terms of the fan experience, we continue to see the emphasis on live events being more towards the older population. And we're seeing Gen Z and millennials still preferring-- 58% saying the live experience is important to them versus the rest of consumers, about 71%. So the pressure continues to be on to figure out what is it that next generation is going to want from their experience. And is that economy-- we're not seeing it. I would say from our college fans at our college sports experiences, they are still spending, and certainly not showing any signs of slowing.

RACHELLE AKUFFO: And Belinda, just very quickly, who tends to be the biggest spender? Some of these one-off incredible concert attendees, or the people who are sort of your tried-and-true football fans who are showing up week in, week out?

BELINDA OAKLEY: Oh, great question. Look, I think what we see for our sports fans, our real fandoms who spend most of their time at the game, they're obviously making choices on a weekly basis to be economical. But we still see that-- especially when the results are up, we see a huge difference in per cap spend. So it kind of depends how the team is playing, I would say, in terms of who is spending the most.

But obviously, something like these key concerts, whether it's a Super Bowl that we're fortunate to have in 2025, or whether it's any of Taylor's shows, these are once-in-a-lifetime experiences. And people are certainly not watching their budget while they're there. They're enjoying every element of the experience to the best of their ability.

RACHELLE AKUFFO: That is definitely true. As someone who went to the Beyonce concert, I don't even think I looked when I was swiping my card for that cocktail. Appreciate you joining us. Belinda Oakley, Sodexo Live! North America CEO. Thanks so much, and have a great weekend.

BELINDA OAKLEY: Thanks so much. Enjoy the game today.