As any restaurant owner or operator will tell you, food and beverage is an extremely challenging and competitive industry, even during the best of times. A complex range of considerations must be mastered to create an exceptional dining and entertainment experience.
Food quality is, of course, one of the most important factors, but level of service, employee training programs, design aesthetic, revenue generation and the perceived value proposition for the patron are of equal significance. Particularly in today’s challenging economic environment—with the notable “trading down” effect in full force and discretionary consumers spending less and demanding more—the need for F&B properties to keep their product offerings fresh, current and distinguishing has never been greater.
For F&B operations specific to casino environments, there are other unique considerations. Amenities are a tool to drive customer traffic and provide both ancillary (non-gaming) and incremental (additional gaming) income. And research continues to indicate that food and beverage amenities rank among the most important criteria for potential patrons when finalizing their destination choice.
Your F&B offerings matter, and in this environment, they had better be cost-effective, exceptional and distinctive.
As we all know, it takes a lot more than a standout restaurant design to yield a successful operation. An award-winning design concept might drive traffic and interest, but if the quality of the overall experience doesn’t match up, the return on investment will never come. The most successful design solutions are those that are financially appropriate, complement the menu offerings and enhance the overall dining experience.
Today’s F&B market—particularly within casino environments—are still as much about the overall entertainment experience as they are about food. Although consumers are demanding more and spending less, the “eatertainment” age is still alive and well, with food, atmosphere, visual presence and design all supporting the overall impression. The key is to keep an eye on industry trends, and to stay current without over-spending on such elements as physical improvements.
Current renovation and improvement trends in the industry can provide ideas as to the “best bang for the buck” physical upgrades that your operation might want to consider.
Start With Research
Your first step in the design improvement process is market research. It is critical that you obtain and understand the data that will directly and indirectly impact your operations, including local and regional demographics and national industry trends. People are as passionate about food and wine as ever, and the overall target pool is broad.
The specific market parameters will play a huge role in what your offerings need to be, what the project looks like, and what it produces. Similarly, an increasing number of operators have outsourced to F&B advisory entities to help them conduct surveys and apply other research tools to better identify and understand the likes/dislikes and needs of their existing and potential client base.
This level of analysis can also help narrow decisions regarding level of service, branding or chain affiliation opportunities, specific decisions such as menu changes, and other key factors surrounding the goals of the property. Should the restaurant be themed or branded? What should menu specializations include? What level of design is appropriate? All of these questions can be answered with the right research.
So much of what restaurant managers and owners need to know about their restaurant is where they are and who they are. You can’t be all things to all people, but you are definitely one step ahead of your competition if you know who you are and what your client base demands. Investing in the right level of research can help you find the tipping point between your offerings and goals and the market potential and demand. If your new concept vision is organized and your goals match your customers, they will enjoy an unforgettable meal experience and you, as the owner, can deliver it to them for a profit.
Analysis To Decisions
Once you have collectively verified who you are and what you are providing, the focus shifts to delivering the product on budget. Your research should have clarified the number of seats that your facility should provide, how the property should be positioned, the focus of the menu offerings, brand or theme, and other differentiating strategies. All of these elements should be documented in your business plan and budget, and shared with your design and construction partners.
Your design and construction team is critical to the long-term success of your facility. The underlying theme of the property should be menu-centric, and the right design team will be able to demonstrate examples of how to translate these considerations into the built environment. Fees for designers and contractors are more competitive than they were just a few years ago, and operators are in a strong position to negotiate favorable contracts with excellent firms. Do your homework and seek out firms that had a hand in properties you like, and that can demonstrate both aesthetic and financial success.
A venue narrative is an excellent way for the operator and design team to begin to describe and visualize the desired end product. In fact, requiring a venue narrative from potential design teams is one option for helping identify the right partner to guide you through the process. It allows the operator to understand how the design team will develop and execute the concept, without requiring more extensive design services that many entities are hesitant to provide before the contract is executed.
Is Themed Design Dead?
Well, not exactly, but heavily themed properties are certainly less common than they were just a few years ago. Instead, the trend seems to have been pared down to those who execute theming best, and such inspirations as regional influences and (surprise! surprise!) the menu now drive design schemes. Not to mention that heavily themed spaces tend to be more expensive, which has led to a trend toward more streamlined, cost-effective solutions.
Regardless of whether a restaurant, bar or nightclub is themed or not, the “basics” always need to be the focus. And by basics, we mean those always-important physical attributes that help define a successful F&B operation—factors such as the entrance and first impression, lighting and acoustics, level of intimacy and a seating layout that is comfortable to both guests and employees.
The physical design of the space will set the tone for the experience, determining if the vibe is casual, calm and serene, or hip, contemporary and boisterous. And small physical components can make a huge difference. In many situations, design improvements can be made without more expensive, physical changes. Décor and tableware, menu upgrades and seating (re)arrangements can have a huge impact without extensive costs. The overall concept must promote operational efficiency, and in this regard, the seating layout is one of the most important physical considerations.
The floor plan must be fluid with proximity of key functions for employees, while still offering some level of privacy and intimacy for guests. The same of course holds true for the core of any food-based operation—the kitchen. Hire an external expert if you have to, but always prioritize the functionality and effectiveness of the kitchen area. The storage, food prep and equipment reorganizing projects you have been considering can have a big payoff in terms of productivity of your staff, so don’t rule them out. New solutions such as plug-and-play appliances and equipment on wheels mean that such upgrades are very possible at a reasonable price.
For F&B properties in or adjacent to a casino, some standard guidelines require that a typical 200-seat restaurant has in the range of 48 to 56 square feet per seat (average size between 9,600 to 11,200 square feet). Circulation and seating in a typical restaurant includes 28 square feet or 5,600 square feet for front-of-house operations and another 4,000 square feet for back-of-house operations.
When more dramatic physical changes are warranted, operators are often surprised to learn how comparatively cheap a lighting redesign can be, and how dramatic an impact a well-executed lighting scheme can have on a dining space. The same is true for flooring and other fixed upgrades, as well as the all-important acoustic quality and incorporation of such related elements as music. Total reconfiguration is another story, and when such extensive changes are made, it is important to get the right design and construction team on board.
Going Green
If there is one “theme” that is catching on as of late, it is the shift toward sustainable design in both F&B and casino design. As restaurants look to differentiate from the competition and provide added dining experiences for guests, they should consider utilizing “green” building materials comprised of renewable resources.
Green materials are more environmentally responsible because they are evaluated over the lifetime of the product rather than just from the perspective of initial procurement and use. Examples of green building materials include bamboo, cork and cellulose insulation. Other sustainable applications can include more efficient appliances, energy-efficient lighting, on-site water filtration systems to reduce bottled water needs (and waste), and even expanded or dedicated storage areas to accommodate frequent deliveries from local food sources.
Often, the initial construction costs associated with these materials is higher than conventional building supplies. However, the higher costs tend to be effectively mitigated by the lower operational costs associated with long-term utilization. For example, a recent study commissioned by California’s Sustainable Building Task Force concluded that a 2 percent increase in building costs associated to green materials can lead to 20 percent increase in the life cycle of the design element.
What this means for casinos and F&B amenities with redesign or redevelopment plans is that the up-front costs of utilizing green materials is likely to pay off 10 times over. Additionally, as an increasing number of the customers understand, respect and expect sustainable practices, green construction can even be implemented into the marketing plan to drive more business and generate higher revenues.
Volume and Durability
As previously mentioned, casino food and beverage customers are “trading down” for more casual dining experiences. It follows that as this trend continues, the casual and mid-scale restaurants will need to emphasize higher customer traffic volumes to maintain overall revenue goals. Such strategies, while likely necessary, will inherently increase the wear and tear on the design materials and test the durability of the products currently used in the restaurant, specifically on such elements as seat cushions and coverings, banister edges, wall corners and carpeting.
As casinos look to build, redesign and refurbish the restaurants, it will be important to seek out materials with higher durability levels so that redesign investment yields some longevity. Casinos in general—and the F&B operations within them—are simply not seeing the same return on investment for major changes, so the focus continues to be on smaller improvements that yield a notable difference. The small incremental costs associated with utilizing more durable products will produce returns by not having to constantly repair and replace fledgling materials. Additionally, more durable products, in most cases, are of higher quality and will present a more polished design experience for the customer.
Technologies and Systems
In addition to basic front-of-house considerations such as the first impression at the entrance and the seating layout, there are other technologies and systems to factor into renovation and upgrade projects. Point-of-sale systems, procurement and warehousing needs, beverage delivery systems, audio/visual enhancements, security and observation systems, and specialty F&B equipment are just a few of the technical components that can bring significant ROI to the operation when upgraded.
In addition, for casino-specific environments, management should evaluate opportunities to tie into the overall property marketing strategies. Some of the trends that are finding success throughout the country include food/wine-pairing tastings, and themed food and entertainment events that provide the perfect opportunity for the property’s F&B facilities to showcase their offerings and drive traffic to the overall resort.
Joint participation is beneficial because it allows the F&B property to take advantage of the database mining and player club strategies of the main casino. Incorporating designated areas within your facility to allow for such high-profile function integration is a smart and cost-effective strategy if the space allows.
Consumers are “trading down” but keeping expectations high. And F&B operators need to follow suit. Massive expansions and high-dollar renovations are not as common as they were just a few years ago, but that doesn’t mean that targeted improvements with dramatic impacts can’t be achieved for very reasonable budgets.
Make your next improvement project a wise investment by focusing on notable upgrades to the basics of your facility, and making decisions that are financially appropriate for the economic conditions.
