Mastercard MLB All-Star Game Ad on Processing Speed (powered by Bypass)

When A-Rod and Big Papi face off on transaction speed, they do it with the fastest hardware/software in the land...

This fun clip from last week's MLB All-Star game featured baseball legends Alex Rodriguez and David Ortiz in an Mastercard NFC showdown to see who could get more orders processed with their contactless Mastercard.

Shot at Nationals Park, the clip also highlighted the best-in-class speed of the Bypass/Clover software/hardware solution. 

 

Making Digital Experiences a Reality in Sports and Entertainment

Digital experiences are unquestionably the future. Not only are they what fans want, they provide the physical world’s version of a cookie that is so valuable in e-commerce.

If you were to take the 5% of gross sales that Panera invested and apply it to a sports F&B operation – you would spend $2.5 million on the digital program. 

That is not going to happen.  

But 10 years into this annual conversation around bringing seamless digital experience to sports, the growth of the initiatives we are seeing is pushed to the side in favor of further vision conversation.

I have a theory about why: it's not a tech problem, it’s a business problem. Building these world-class digital experiences is an expensive proposition.  

The challenge facing digital investment in sport

Panera Bread, Starbucks and Dominos are frequently cited as having most successful digital programs. For some perspective, Panera spent $150 million over four years to bring their digital solution to market. This was possible because Panera’s stores do over $3 billion in annual sales. Digital has now reached 26% of Panera’s revenue. Starbucks' history of digital investment and results is very similar – although over a longer period of time.

When you apply that model to sports venue it breaks. The highest volume sports properties generate $50 million in F&B revenue. If you were to take the 5% of gross sales that Panera invested and apply it to a sports F&B operation – you would spend $2.5 million on the digital program. 

That is not going to happen.  

Three paths forward

So, knowing that the ROI equation is out-of-whack for sports and entertainment market, is there a way to bring the cost of these digital programs in line with budgets and expectations? Here are couple paths that we see being successful, and they all involve leveraging investment by third parties that can productize a digital offering for sports:

First – Teams and work together within or between leagues to standardize their requirements for digital. There is a committee with almost 50% of MLB engaging on this subject, whether agreement can be reached on workflows and requirements remains to be seen. However, if you could leverage a $2.5-$5 million investment across the league, the cost of the program on a per venue basis, while expensive by today’s standards, generates an ROI.

Second – Concessionaires building their own digital experience with or without 3rd parties is a viable economic model. A large concessionaire in sports generates $1-$2 billion in gross sales, and could justify the investment required to bring a sophisticated digital solution to market. The challenge here – if they build it – is whether clients will accept a solution across their portfolio.

Third (and this is the route Bypass is pursuing for the time being) – Work with digital solutions that are being productized across merchant brands and market segments. Apple and Google are both introducing digital-enabling functionality in their wallets. With Apple specifically, the wallet now accepts a pre-registered loyalty card that can be sent to the phone when the guest makes a digital payment. So you take a huge amount of friction out of registering and participating in the digital program – no card to carry, no sign-up process – really a seamless way to create the physical “cookie”.

We are enabling this technology, working closely with Apple for a $500 million retail restaurant, where the budget makes economic sense. Our goal is to productize it and bring it back into sports at a price point that makes sense for venues. I’m hopeful that will be possible and we’ll certainly know more when we go live in Q4 of this year.  

Success Story: TIAA Bank Field upgrades security, increases revenue with Bypass

OBJECTIVE

22%

PER CAPITA REVENUE GROWTH

SPEED + SECURITY

NO DIP IN SPEED OF SERVICE
WITH EMV TRANSACTIONS

As the Jacksonville Jaguars’ home stadium, TIAA Bank Field (TIAA) desired to accelerate their food and beverage service, while also taking the next step in security — installing a P2PE-validated solution that accepts EMV transactions.

On top of maximizing revenue potential, TIAA also needed to streamline their concessions, suites, and in-seat service operations. Reliable reporting and timely access to data were requirements for gaining insights to inform future innovation opportunities.

Bypass has been a fantastic update to operations at TIAA Bank field - delivering a seamless implementation, superior peak-load stability, and reliable reporting.
— Chris Angne, Vice President Operational Systems and Standards, Delaware North Sportservice

SOLUTION

Bypass enabled TIAA to combine all food and beverage sectors of the venue under one partner. After clear goals and deliverable dates were established, the installation phase included over 550 terminals across concessions, suites, and in-seat solutions.

Utilizing Bypass’s full P2PE encryption technology was key to improving service speed without sacrificing security. TIAA had previously been hesitant to accept EMV or mobile wallet payments due to slow transaction speeds, but Bypass’s unique partnership with First Data and Clover provided the assurance needed to move forward.

Bypass’s full-featured, back-of-house system produced accurate reporting and reconciliation, which streamlined workflows. Bypass was also able to handle custom integrations, such as a partnership with Ticketmaster to accept tickets with stored value.

The Jaguars pride ourselves in making the game day fan experience efficient and seamless at TIAA Bank Field. the Bypass POS and management system contributes to that goal by ensuring we’re ready for the next innovation in concessions solutions.
— Larry Wilson, VP of Facility Operations, Jaguars

 

RESULTS

The TIAA and Bypass partnership delivered accelerated revenue across all food and beverage categories and streamlined venue management.

ACCELERATED REVENUE

After Bypass’s implementation, transaction counts were compared to the previous system on both standard POS systems and once EMV payments were accepted.

When comparing Bypass’s performance to TIAA’s previous provider, Bypass delivered significantly more orders during peak hours of service. Peak load transaction count increased by 22%*, as speed translated to more revenue for TIAA.

ENHANCED SECURITY

Furthermore, even after EMV payment technology was deployed, transaction speed was held generally constant (only up 3%), despite the leap in security.

STREAMLINED MANAGEMENT

Bypass was able to synchronize data into digestible reporting, ready to be consumed by teams located in and out of the venue.

Like the transition to EMV, Bypass’s fast development cycles successfully positioned TIAA to evolve to the needs of the market and to easily innovate as the business continued to grow.

New Report: Verizon finds average data breach will cost an organization $1.75mm

Payment card security has always been critical, but with the news that the cost of a data breach has grown to $1.75m for enterprise class merchants, understanding the different POS platform approaches is paramount.

For years the industry focused on hardening the environments in which sensitive data was stored or transmitted. PCI standards were designed with this idea in mind – if the environment was hardened, the hackers would not be able to access the data. In short, that approach failed.

Bypass is taking this approach a step further – not only follows the P2PE standard, but providing end-to-end security by decrypting the payment transaction at the processor rather than the gateway.

This was because most merchants were operating with commerce technology architected 20 years ago, leaving significant amounts of data on premise – and the distributed nature of their business meant that while the environment might have been hardened at install, it degraded over time.

PCI responded with the point-to-point encryption standard (P2PE), which took a very different approach. Rather than harden the environment, we would now focus on preventing sensitive from being stored or transmitted in a way that it could be intercepted. This approach encrypts the transaction at the payment device and typically decrypts at the gateway before routing to a payment processor.

Bypass is taking this approach a step further – not only follows the P2PE standard, but providing end-to-end security by decrypting the payment transaction at the processor rather than the gateway. As these articles increase in frequency driven by data breaches, we are encouraging our partners to conduct a review of the estate to determine where legacy solutions may still be in-use and accelerate a remediation program.

Recent articles:
https://www.pymnts.com/news/b2b-payments/2018/data-breach-cost-kaspersky-survey-cybersecurity/

http://www.digitaltransactions.net/new-verizon-report-sheds-light-on-hospitality-industry-data-breaches/

https://www.bizjournals.com/houston/news/2018/05/23/chase-files-data-breach-related-lawsuit-against.html

https://www.verizonenterprise.com/verizon-insights-lab/dbir/

Success Story: Chesapeake Energy Arena Grows Revenue with Bypass

OBJECTIVE

Chesapeake Energy Arena (CEA), a leading event arena and home of the Oklahoma City Thunder, understood the importance of concession speed of service, point-of-sale reliability, and innovation in order to give guests a premium experience.

10.5%

PER CAPITA REVENUE GROWTH

6/MIN

TRANSACTIONS DURING PEAK PERIODS

CEA aimed to accelerate concession revenue and streamline their concessions management through one integrated POS solution.

SOLUTION

Bypass was engaged by CEA to consolidate both concessions (managed by Savor) and suites (managed by Levy) to Bypass’s full- service POS and management system in 2016.

CEA valued that Bypass’s system required less cashier training upfront and that software updates were cloud-based, limiting on-premise maintenance. Optimized for fast order and payment processing, Bypass’s solution processed more orders in the same period of time for CEA in comparison to their legacy solution.

The fully-integrated solution also allowed back office reporting, cloud services, terminals, and payment services to be with one partner.

Bypass consistently brings new innovation opportunities to the table as a true partner - whether it be new POS software enhancements, new reporting capabilities, or ideas on how to streamline our business.
— Kaarthik Iyer - Director, Food and Beverage - Savor

 

RESULTS

Two years following Bypass’s implementation, CEA has seen accelerated revenue growth and more streamlined management across their concessions business.

ACCELERATED REVENUE

Concessions revenue growth was a result of an increase in overall per capita revenue and optimized transaction throughput during periods of peak demand.

CEA saw revenue per capita increase by 10.5% with Bypass in comparison to their previous POS system. "The transition to Bypass was smooth in our first year, but year two was where this solution really shines,” said Kaarthik Iyer, Director of Food & Beverage at Savor, CEA’s concessions operator.

Peak load performance saw speeds of up to 6 transactions per minute (sustained 10 second transactions) during top producing intervals, high above industry norms.

STREAMLINED MANAGEMENT

In addition to top-line revenue improvements, Bypass streamlined concession management with a fully-connected system, allowing CEA to quickly access actionable reporting. Bypass’s continued investment in innovation also allows them to strategically partner with CEA to offer new technologies and optimizations — all deployed via the cloud without additional hardware installations.

CEA plans to continue to leverage Bypass’s POS and management system to grow their business as a long-term partner.

Cincinnati Reds Expand Amazon-Style App-to-Locker Service

Cincinnati Reds fans attending games at Great American Ball Park this season can skip lines  for those mid-game hot dogs, snacks and drinks. Expanding on a successful 2017 pilot of mobile ordering fulfilled through lockers, fans can securely place an order on the MLB Ballpark mobile application, selecting food and drink options from three different food concepts and then pick up their order at a locker.

The Reds expansion resulted in a 300% increase in mobile commerce activity season-over-season and represents one of the most innovative ways baseball teams are using mobile technology as a means to fulfill increased fan expectations to amplify their ballpark experiences directly from their phones.

The entire restaurant industry also is responding to guest demand for self-service ordering – from kiosks to mobile to online – and the world’s biggest brands have rolled out solutions that enable customers to make purchases when and how they want.

Thanks to the collaboration between these great partners, Reds fans can now enjoy the convenience of mobile ordering and no-wait pick up at the ballpark
— Phil Castellini, Chief Operating Officer of the Cincinnati Reds
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Bypass, APEX, MLBAM & DNC Launch Industry First Food Pickup Lockers at Cincinnati Reds

This upcoming season Bypass, in partnership with APEX Supply Chain Technologies, Major League Baseball Advanced Media, and Delaware North Sportservice, will be launching an "industry first" in food pickup technology with the Cincinnati Reds as the first customer.

Thanks to the collaboration between these great partners, Reds fans can now enjoy the convenience of mobile ordering and no-wait pick up at the ballpark
— Phil Castellini, Chief Operating Officer of the Cincinnati Reds

The installation follows a successful pilot during the 2017 season where fans used the award winning MLB Ballpark mobile app to order food and beverage with a few quick taps and then pickup from APEX lockers.

These self-serve, automated pick-up stations are the first of their kind in a major league stadium or sporting venue and allow fans to skip the concession lines and spend more time enjoying the game by ordering and paying for food and beverages using the official MLB.com Ballpark app.

The order is sent directly to the concession stand and is immediately prepared.

Once the order is ready, it is placed into a locker that only the person who placed the order can open.

The user then receives a push notification with a code which they use to unlock the locker!

The pilot was a huge success with satisfaction over 95% and guests loving the new experience saying things like "awesome" and "why don't you have this everywhere!".

We believe this is just the start of a revolution in mobile ordering and pickup that will sweep through the sports industry.

Watch the interview with APEX, DNC, and the Reds on how this will change the fan experience in Great American Ballpark and be sure to follow as this is sure to be a major story all season!

 

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Bypass is the leading innovator in enterprise point of sale solutions and retail operating systems for the multi-site food & beverage industry.  Our cutting edge approach helps professional & collegiate sports teams and national restaurant chains achieve unrivaled improvements in profitability, efficiency, and customer experience.  We deliver this with a  cloud-enabled, hardware agnostic, data rich platform.  Bypass has been deployed at hundreds of venues and restaurants at a cost, pace, and ease of integration never before possible.  Please visit www.bypassmobile.com to learn how we can do this for you.

Apex Supply Chain Technologies is the world’s leading provider of automated dispensing solutions for use in a variety of applications and industries, including foodservice, QSRs and fast casual restaurants. Our devices bring the benefits of self-serve automation to some of the biggest brands in the world. With world headquarters in Mason, Ohio, Apex has offices in Australia, France, Germany, Poland, the UK and Latin America. To learn more, visit us online https://www.apexsupplychain.com

Major League Baseball Advanced Media Established in June 2000 following a unanimous vote by the 30 Major League Baseball club owners to centralize all of Baseball's Internet operations, MLB Advanced Media LP (MLBAM) is the interactive media and Internet company of Major League Baseball. MLBAM manages the official league site, MLB.com, and each of the 30 individual Club sites to create the most comprehensive Major League Baseball resource on the Internet. MLBAM also develops, deploys and distributes the highest-grossing sports app, At Bat, as well as manages live video content for dozens of clients. It captures, encodes and distributes tens of thousands of live video events annually, powering more live events on the Internet than any other property in the world.

Delaware North is one of the largest, privately-held hospitality companies in the world. Founded and owned by the Jacobs family since 1915, Delaware North has global operations at high-profile places such as sports and entertainment venues, national and state parks, destination resorts and restaurants, airports, and regional casinos. Our 55,000 employee associates are dedicated to creating special experiences one guest at a time in serving more than a half-billion guests annually. Learn more about Delaware North, a global leader in hospitality and food service, at www.delawarenorth.com