A souvenir cup is sold as a keepsake and priced as a bundle. What the buyer is paying for is a molded plastic object plus a drink plus the right to come back for more.
The cup is a manufactured good
Souvenir cups are injection molded or thermoformed with printed graphics, in volumes ordered long before the season they are used in.
Ordering ahead means the design has to be generic enough to remain sellable, which is why they carry team marks rather than dated event details.
Unsold stock carries over where the design allows, and is written off where it does not, which pushes designs toward the timeless end.
Refills are the actual product
The pricing works because a substantial share of buyers never return for the refill they paid for, and the margin on the remainder is still positive.
Refills also cost less to serve, since the cup already exists and the transaction is shorter than a full sale.
The economics fail where refills are unlimited and the venue is long, which is why refill terms are usually written narrowly.
Service capacity is the hidden constraint
A concession stand's throughput is measured in transactions per hour, and a refill occupies a position in the same queue as a full purchase.
During peak windows that capacity is the venue's binding limit on revenue, so a refill transaction displaces a more profitable one.
Some venues respond by putting refills at separate stations or by restricting them to periods when queues are short.
Reuse policies complicate the model
Bringing a cup back on a later date extends the value to the buyer and reduces the venue's beverage revenue on that visit.
Venues that offer it are effectively buying loyalty, which is a marketing decision rather than a concessions one.
Health and safety handling of returned cups adds a step at the counter, which again consumes the throughput that the operation is short of.
The reusable cup movement changed the framing
Deposit-return schemes replace disposables with durable cups that are collected, washed and reissued, which shifts cost from purchasing to washing infrastructure.
That requires dishwashing capacity, storage and collection points, none of which exist in a venue designed around single-use service.
Where those systems work, the souvenir cup and the reusable cup converge, and the object a spectator carries home becomes an exception rather than the default.

