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      F&B directors weigh in on the importance of foodservice operations at Canadian casinos
      March 17, 2016


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      The importance of foodservice at Canadian casinos

      As the Canadian gaming industry continues to adapt to changing demographics, advances in technology and an on-going battle for the consumer’s entertainment dollar, food and beverage services have taken on a central role in most casino operations across the country. Canadian Gaming Business recently asked F&B directors from Canadian gaming facilities about the increasing importance of food and beverage in the overall customer experience and how operators can gain market share through the use of innovative F&B offerings. Read on to hear what they had to say…

      Panellists:

      Steve Chase, Executive Director, Food & Beverage, Fallsview Casino Resort
      Alain Dumonceaux, Executive Director, Food & Beverage and Events, Manitoba Liquor and Lotteries
      Karsten Purbs, Director of Food & Beverage, River Rock Casino Resort
      Greg Van Stone, Vice President, Food & Beverage, Pure Canadian Gaming

      What are some of the biggest challenges facing casinos and gaming organizations when it comes to food and beverage amenities?

      Steve Chase: The biggest challenge for us in F&B is to remain current. Food and beverage is still the No. 1 amenity that supports gaming. We have world-class entertainment, a great spa and hotel accommodations but it seems to always come back to the food. People come here for our food offerings.

      Alain Dumonceaux: Top of the list is balancing operation costs versus customer expectations. Our market research indicates that our core gaming customers have three issues with food and beverage: Price, value and variety, especially when it comes to buffets. Balancing these expectations can be challenging.     As an organization we are addressing our customer wants through a renewal process for both Club Regent Casino and McPhillips Station Casino. Even though the renewal will provide a refreshed casino floor, a focus on non-gaming amenities will continue.

      Karsten Purbs: There needs to be a better understanding of the impact your F&B offerings will have on your property, realizing that there are significant opportunities to drive visits to the property and drive overall profitability. Food and beverage needs to be treated and looked at as a part of the destination.  As operators look to grow the new player segment, F&B is one opportunity that must be utilized to help with this. Guests are looking for more out of the F&B offerings and you need to stay on top of this through investment, products, training and leadership.

      Greg Van Stone: We are constantly faced with both internal and external challenges some within our control and many outside of our control. The one common denominator between the two is reacting to these challenges as opportunities versus excuses for underperforming. Our goal is to ensure consistency and value for our guests while allowing a chance to relax and be served in an exciting, clean, friendly environment. We are constantly working to create and implement compelling food and drink specials that create a bond of loyalty with our players and guests.  

       

      Where do you see the greatest growth opportunities for food and beverage operations in casinos in 2016 and beyond?

      SC: The greatest growth could be in something like our catering operations. People are getting tired of having their meetings and banquets in a ballroom so we’re seeing groups of 15 to 50 where they want a reservation in one of our fine-dining restaurants. Looking at the restaurants themselves, one of the things we have been successful with, being that these restaurants were originally developed and built for our gamers, is creating an opportunity for the tourism and travel market on quieter days and non-weekends. We’re here for the gamers first and foremost but it doesn’t mean we should have an empty restaurant on a Wednesday night when we can possibly fill it with the corporate or local tourist market.

      AD: Our greatest growth opportunity lies with the gaming customer who does not necessarily want to eat. We have developed plans over the next few years to focus on that group. For example, we are looking at serving customers directly at the gaming station.

      KP: For the larger sized properties throughout Canada, I see the convention/banquet operations as a huge opportunity for the future. More and more businesses value the attraction of hosting meeting/events at casino resort properties. Typically these are early to mid-week bookings help to grow your F&B/Hotel and gaming revenue during slower periods in the weekly business cycle.

      GVS: The greatest growth opportunity lies in the ability to differentiate yourself from the competition. We believe this can be achieved through hiring the best, providing superior guest service and ensuring the highest quality, innovative menus. Casinos offer the same table games and slot machines but the team that provides the best service and food is where you can truly separate yourself from the pack. We also believe growth will come from the menu items that we serve. Consumers today expect to have value, quality and consistency with each visit. For this reason, we revise and enhance our menus twice a year based on direct feedback received from our guests.

      How must gaming organizations continue to evolve in order to address the needs and preferences of customers along with changing demographics?

      SC: Our newest restaurant is an Italian restaurant. You could say that Italian restaurants are always going to be popular but the reason we chose to open this one in Niagara Falls is that we have a very large Italian population here and in nearby Toronto. Our Chinese restaurant was built for our biggest and fastest-growing market in the Asian sector. We built an authentic Asian restaurant (where most of the patrons speak Cantonese, for example) but we’re hoping our non-Asian guests will also want to come in and enjoy the authentic Asian cuisine. But our initial goal was to build an Asian restaurant where our Asian customers would feel comfortable in their own cultural environment.

      AD: Much of the information available regarding Millennials indicates this group is looking for experiential opportunities. Casino operations that develop a hybrid of multi-media, interactive game play and chic food and beverage offerings stand a better chance of attracting Millennials. Pop-up floor bars with entertainment, pop-up restaurants and mobile ordering and payment apps all appeal to new and younger customers. In the meantime, operators can’t lose sight of their current customer. Taking a holistic look at your entire F&B offering within the casino environment and measuring as a single unit and on its own merits should yield valuable information.

      GVS: The proliferation of iGaming and social gaming has widened the generational gap we’re facing and reaching the Gen X’ers and Millennials through such a competitive environment has made attracting new loyal players a much more difficult task for our industry. So ultimately, the key task, whichever medium or format that we’re using to deliver our message, is to ensure a consistent wide range of offers and communication to our audiences. Gaming-oriented messages aren’t going to cut it; we need to appeal to an entire food, beverage and entertainment experience through our differentiated offerings.

      What kind of an impact will social media/mobile technology and the Internet and have on the growth and development of F&B offerings?

      AD: All of these are having a profound impact on F&B. Have a bad experience in today’s market and the old adage of someone “telling” 10 others does not apply any more. A poor experience can go viral on social media platforms. On the flip side, F&B is a door to communicating outside a casino’s four walls.  Dedicating resources to social media, to respond, promote and tantalize guests with F&B offers is a smart move for casino operators. Embracing technology such as mobile with QR codes for ordering, payment apps and upgrading culinary operations with more efficient equipment are all ways to more effectively interact with our customers.

      KP: The impact is already being felt throughout the industry, from timely posts of reviews of your operations – including lots of pictures — to the ability to reserve seating in your restaurants on their smartphone. As operators, we look at what can do to speed up service to guests. Technology can play a role, but you need to do your research to ensure that you are not being sold on the glitz of something shiny and new. Every property should have a social media strategy and a plan to engage the F&B operations as an important part of it. Driving cover counts through social media can have a positive impact on your gaming revenue.

      GVS: I see the biggest opportunity in the introduction of mobile apps. Extending the guest’s relationship past their visit to our bricks and mortar locations, we can allow guests to continue earning and redeeming rewards, to check their point balances, and to keep up-to-date on new developments and events or have F&B offers and coupons pushed out to their devices. Staying connected with our guests allows us to keep them in the action.

      What general F&B trends can casino operators leverage to increase traffic to both their foodservice operations and the gaming floor?

      SC: First and foremost, you have to listen to your customer. For example, the hottest trend over the last few years has been gluten-free food and other health-related concerns. We try to be everything to everyone so we have healthier choices on our menus — organic, gluten-free, vegan options. Even though we have a steakhouse, a Chinese restaurant and an Italian restaurant with many indulgent foods, we also have listened to our customers and provide healthy options as well.

      AD: The popularity of “apps” is starting to make headway in foodservice operations. Everything from making reservations, ordering menu items and taking payments are now commonplace in trendy restaurants. On the gaming floor, whether food and beverage leverages player windows to accomplish what apps would do, or utilizing QR codes on gaming devices to pull up menus and place orders, it is only a matter of time when this will be commonplace. Local, sustainably sourced product offerings continue to gain popularity. In our operation we have committed to purchasing 25 per cent of our food products that are local and sustainably sourced.

      KP: It really depends on your property and your market. More than ever, guests are looking for value. By this I do not mean discount, but quality products and services for their money. Creating quality F&B operations, focusing on the best products available for set price points will drive guest visits.  Also, using locally sourced products, organic and small batch-made items. It is important to note that today’s consumers are more active when it comes to learning about food and beverage choices and sources which in return requires appropriate preparation and ability to address the guests’ needs.

      Which other non-gaming amenities can be combined with F&B operations to create a more satisfying casino experience for customers and how can this be accomplished?

      SC: Packaging seems to be creating some new opportunities. For example, we have a Yuk Yuk’s Comedy Club and even though we’ve been here for 19 years now, we’ve never really combined the dinner-show options before and we’re starting to do a little more of that. We’re also working together to do more with our spa facilities and F&B. Food and beverage is an old business while gaming is relatively young, just 20 odd years in Canada, so we’re always looking at new ways of combining entertainment, retail, spa and other non-gaming amenities with our F&B options.

      KP: The example we can always look to when it comes to creating a wholesome casino experience is live entertainment. If we look at the case of Las Vegas, we can see that live entertainment has allowed casinos to increase guest visits and also attract new clientele. Live entertainment can be presented in many different ways: music, comedy, sporting events, magic, theatrical, etc. Entertainment can work well and it can also be a detriment. You must have a clear understanding of your marketplace, what is the goal of presenting particular entertainment options, how to capitalize and properly entertain guests who are experiencing the property because of that particular offering and what is the best way to utilize the venue.

      GVS: We utilize free, live entertainment in most of our properties as another way to attract guests to our properties. We work very closely with our marketing team to ensure that we are focused on the kinds of bands and sporting events that our guests are expecting. They reward us based on their patronage each and every weekend. We have positioned ourselves as the place to be on the weekends as we combine compelling food and drink specials on the weekends to “peak the peak.” This approach has been a clear driver of guest satisfaction and loyalty here at PURE and we expect to continue these types of offers in the future. 

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