Buffet at Harrah ’ s Southern California
A deep dive into matching the quality of product to the price of product can have an immediate impact on a restaurant ’ s bottom line . employs a pricing strategy . Mercedes Benz employs a differentiation strategy . And both enjoy favorable reputations and robust sales .
This principle holds true for the casino industry as well . In Las Vegas , the Excalibur Hotel and Casino was designed from the ground up to compete on price . Its 4,000 rooms are relatively modest , all bathrooms contain shower stalls to reduce cleaning time , and its restaurants offer modestly priced fare with relatively few selections . It can thus deliver a vacation product priced lower than the competition and still make an attractive profit .
Wynn and Encore are designed with a wealth of amenities that differentiate them from the competition . Richly appointed rooms and suites , private gaming salons , stunning restaurants and a private lake all drive up the cost of doing business , but allow Wynn to command a much higher rate . Both Excalibur and Wynn deliver value to their customers .
The pricing strategy for casino restaurants should follow the positioning strategy of the overall facility . It would be as inappropriate to put an Outback Steakhouse at Wynn as it would be open a Del Frisco ’ s at Excalibur . Operators must know the positioning of their property to make ideal restaurant decisions .
THE PRICING
Restaurant pricing takes two primary forms . The first , as described above , is determining the correct positioning strategy . The second ? Identifying the correct per-item pricing . Restaurateurs can leave money on the table by undercharging for certain items . For example , does your casual cafe charge $ 1.50 or $ 2.85 for a fountain soda ? If McDonald ’ s charges $ 2.85 for a Coke or Sprite , so can you . By making such small changes , you can almost immediately realize substantial levels of profit .
In your fine dining restaurant , are you charging $ 2.50 for a fountain soda or $ 5 ? While $ 5 may be too much , bringing out an 8-ounce glass bottle of Coca-Cola can now garner the higher price point . Furthermore , the presentation — a beverage being poured from a glass bottle — enhances the customer ’ s perception of the overall dining experience .
The opposite of this strategy also applies . Customers can be turned off when venues apply sneaky pricing . If a customer goes to the casino ’ s three-meal unbranded restaurant , orders a $ 12 club sandwich and is charged $ 4.50 for a fountain soda , it could prevent them from returning in the future . To best set
20 l CASINO DESIGN 2017