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Some organisations can forget that many seemingly small things affect the bottom line, says Sharon Harris
For various reasons, from an unfavorable holiday weekend calendar to a terrible economy to hurricane-like weather, September proved dismal for Atlantic City casinos. The 15 per cent decrease was the highest in 30 years.
The disastrous financial picture also played out in Las Vegas, Mississippi and across the US. It has even affected Foxwoods, the legendary giant in Connecticut that has long shattered casino revenue records. Not only did Foxwoods lay off 700 employees in mid-October, it also terminated its CEO to cut costs.
These scenarios have blindsided many casino executives. They bemoan higher gas prices, the slowing economy and competition, but I also blame some of them. Sloppy management and training may waste thousands in different departments every week.
Consider this… I am still steaming. My friend is a VIP player at one top Atlantic City casino. She invited me to dinner at their high roller lounge on a recent weeknight. The room’s overflowing buffet offered dozens of selections.
After dinner, I decided on dessert, only to find the buffet almost empty at 8 pm. They were closing, which I considered to be early, even on a weeknight. I requested a dessert from the kitchen, but the server said everything was gone.
What did that mean? As I watched in shock, she emptied dozens of food plates into a large trash bag. Looking closer, I saw piles of uneaten items. We were a bit annoyed that there was no “last call” before closing, but we were outraged to think they would discard so much food in front of customers.
The idea of trashing so much food when people are struggling was shocking. That scene was a public relations disaster. These servers used zero common sense by at least not taking the food into the kitchen to dump it.
The following evening, I was at another casino where I know the food and banquet manager. Without identifying the casino, I relayed the story. He reacted in disbelief at the poor management of the food bar. He explained that once the food leaves the kitchen, it cannot be reused. However, if wisely replenished at intervals, the leftovers still in the kitchen can be donated to charity for a tax deduction, or used later. Either way, it is not wasted.
Multiply that nightly scene by 52 weeks a year. Such staggering waste contributes to the bottom line expenses on a property’s ledger sheet. Also, multiply that type of incident by an unknown number of departments where the staff is poorly trained to conserve, or management has dropped the ball completely.
To survive and thrive in these tough economic times, managers need to redefine “streamlining” their operations to create a “leaner machine”. Rather than lay off employees, how about focusing on those wasteful, unproductive practices? While no-one
can teach common sense, managers should reconsider putting those clueless employees out in the public areas.
Speaking of jobs, here is a question to ponder. When companies lay off thousands on the promise of future employment, do they have a responsibility if they delay a project? One Atlantic City councilman thought so in September. He proposed forcing Pinnacle Entertainment to commit to a construction deadline for its delayed casino resort.
When Pinnacle demolished the Sands Casino Hotel in November 2006, jobs disappeared for more than 2,000 people. Many found employment in other casinos, but others remained unemployed, and may still be without work. Pinnacle pledged its $1.5 to $2.5 billion megaresort would create thousands of new jobs and greater tax revenues for Atlantic City.
The current credit crunch has squashed those plans. Pinnacle has delayed groundbreaking for at least another year. In the meantime, the vacant multi-acre site at mid-Boardwalk remains a reminder that jobs and revenues were imploded with the building. Nothing positive will come of this location for years.
Fortunately, despite the scaling back of other Atlantic City projects, there is still construction. Within the last several months, Harrah’s, Borgata and Trump Taj Mahal have all opened new towers. Revel continues to grow higher each month.
Promises ring hollow. Casino jurisdictions must work to ensure that prior to the demolition of an existing economic engine, new projects should have at least enough capital to hoist the construction cranes
Whatever happens in November – thankfully, this eternal election will be over by press time – everyone should expect to hang on for a bumpy ride going forward. The casino industry must smartly develop constructive ways to manage its bank accounts.
Maybe the G2E seminars will offer sage advice…
I hope so.
