We are lucky enough to be involved with a number of operational reviews with the aim to increase profitability for pubs, clubs and casinos. But it’s important to look outside of the spreadsheets and financial analysis when it comes to improving your bottom line.
In our experience there are six essentials to great profitability and performances. If you can say “yes” to or “tick off” all of these, you can’t go wrong.
1. We’ve got the best gaming facilities money can buy (to go with all the other great facilities)
I heard a senior manager of a major venue say the other day that they had “neglected gaming” over the past few years. That startled me. How can a gaming venue neglect gaming? Isn’t that the core business?
The best gaming environment will include comfortable chairs and bases, privacy, modern décor, clean and well maintained finishes and facilities.
A good rule of thumb is to spend 6.5% of gaming revenues on the gaming environment and equipment each year.
2. Our customer service is remarkable in every way
Customer services can’t come from a rule book or a set of policies. It has to come from the heart and culture of each and every team member. Great service starts with culture and culture comes straight from the actions and demonstrated behaviour of the men and women at the top of the organisation.
Some great tools for customer service are well documented and if in doubt you can Google them. But a real shift in customer service is hard work and requires constant investment, reinforcement and evaluation.
3. You can get something nice to eat all day (every day)
I was work-shopping a business improvement forum with a management team at a large gaming venue and the head of security piped up and asked why food wasn’t available after 10 at night. The gathering was surprised that customers were forced to access the vending machine to satisfy their hunger after 10pm.
Great venues offer irresistible food at all hours.
4. Taste the best coffee in town at our place (in the best coffee shop)
When your executive team can say that you’ve got a coffee shop, and coffee, that rival the best that Sydney or Melbourne has to offer, then you can tick this one off. Anything less and you still have work to do on this aspect of success.
5. Take a photo of our toilets (and tell others how good they are)
If your customers are taking photos of your fantastic toilets and sharing them, in a good way, then you’ve mastered this element. Sorry gents, but female toilets are more important than men’s when it comes to pubs, clubs and casinos.
6. Parking isn’t an issue – even in the rain or blazing sun
If you can say that you have at least 3 covered car parking bays for every place at a gaming machine or table, all within 100 metres of the main entrance, then you can tick this element off.
And after all that hard front of house effort, ask the accountants to tell you what the EBITDA (Earnings before interest, taxes, depreciation and amortisation) is as a percentage of total revenue. I’d be surpluses if your club or pub is less than 22%. Casinos are different and should be delivering 30% or more in EBITDA conversion rates.
For more information on how DWS Hospitality Specialists can assist your venues profitability, contact the team on 07 3878 9355 or email us at email@example.com.