measuring success in casino food and beverage

Often casino management believes a buffet is necessary they think the patrons love it. But buffets are usually inefficient and result in large amounts of food waste. Lower-cost steaks can yield incremental profit to the overall operation.īuffets have long been a means of attracting people to a casino through price-driven meals. And the cost of goods is generally lower. These products can attract people as stand-alone businesses. For most, however, it’s likely that spending extra money on prime beef doesn’t yield incremental benefit to the operation.ĭepending on the casino’s proximity to the surrounding population, the best choice may be to convert the steakhouse into a branded mid-market operation such as Texas Longhorn or Outback. Should the steakhouse be operated in-house or leased? What grade beef should be provided? Such choices can have a significant impact on costs, and some casinos cater to enough premium customers that offering prime steaks at the premium steakhouse is appropriate. Even if it is, you must determine the ideal positioning for each of those venues. In the past, the perfect formula for any casino included a coffee shop (not Starbucks, but your 24-hour café), a buffet, a steakhouse, and one or more quick-serve outlets.īut this formula may not be right for your casino. Too often, casinos add certain venues just because their competitors have them. To optimize guest count and the restaurant’s financial contribution, you must first determine the appropriate product. While regional casinos differ substantially from those on the Strip, they can apply the same practices to turn a profit from dining. Outside Vegas, many operators have discovered how well-run restaurants and bars with quality food offerings can benefit the bottom line.

Bars and restaurants today are a significant generator of EBITDA (earnings before interest, taxes, depreciation and amortization) for many Vegas resorts. Las Vegas Strip operators have clearly demonstrated how profit can be gleaned from F&B operations. An effective food and beverage strategy should not only attract and retain gamers, but generate profit through proper pricing and planning. In today’s business environment, casino operators must find ways to enhance and maximize the appeal and gross operating income of their food and beverage venues.

Measuring success in casino food and beverage