Four Queens Part 2

Yesterday, Terry Caudill, whose TLC Enterprises owns the Four Queens and Binion's, answered the question put to us that we put to him about how he can keep costs so low at his casinos. He explained, among other business philosophies, why he eschews resort fees (“a ripoff”) and likes to serve full meals at Hugo's Cellar.

Today, he revisits his early years in Las Vegas and returns to the importance of valuing one’s employees.

By the way, this QoD was a one-day answer -- until Mr. Caudill called us back on the day following the interview, admitted to lying awake awhile and considering his answer, then posed a question of his own.

“What's the heart and soul of the success of our operation? It’s my employees. It starts with my employees. Our motto is, ‘Friendliness and cleanliness.’ Well, that starts with them. The employees take care of my customers, so if I take care of my employees and they do a good job, then they in turn take care of my customers.

“We rely very very much on repeat business and that comes very much from our employees taking care of our customers. My employees make that happen.

“I’ve been in Las Vegas since 1983, but I was in Reno for 10 years before that,” Caudill recalled. "I've always been fascinated by the gaming industry. My background is accounting. I have degrees in math and accounting and to see the pure science of math interacting with human psychology is the most fascinating thing in the world to me.

“I came here when everything was transferring over into corporate, but I still love the nostalgia of Vegas. So when we had a chance to buy Binion’s, I wanted to keep the name of Benny Binion alive, not try to supplant it or change it. It’s a mixed reputation, but it’s Benny Binion! He’s an icon in this town. We try to respect the traditional Vegas. That’s epitomized by downtown.

“Downtown properties, you have to walk the floor. You have to be a presence. You can’t run these properties from 2,000 miles away. The customers need to see you. Your employees need to see you. You need to see what’s going on. All of those things together create a philosophy and it’s worked for us.”

Caudill was eager to explain his working method, which mostly amounts to practicality and hard work.

“Most of this past year, we’ve been a hundred people short. What happens? My people who've been here a long long time and believe in me, they’re busting their tails. They’re working overtime. They’re doing what they have to do. Everybody’s just chipping in and making it work. We try to keep our costs as low as we can. That’s why we have to have that repeat business.

“We control our costs well enough to where we haven't had to raise our rates as much as others. When they started this resort-fee concept, people just saw the money and the public didn’t seem to catch onto it. They called and were quoted the rack rate, but not the resort fee. A lot of people, in the early years, didn’t know about the resort fee until they went to check out. ‘What is this?’ Now, all of a sudden, people seem to have accepted it as a given. To me, that’s just not right. We’re not making a killing, but we’re doing fine.

“When it comes to the Strip, yeah, I think the Strip got carried away with their pricing and I can give you a couple of recent examples in F One and the Super Bowl. Some of our customers were priced right out of the market. That’s OK; they can come on some other weekend. But that’s not a value for them. That’s why I love downtown, why I stay downtown. The Strip -- it seems like they want every last penny.

“I worked for Circus Circus Corporation for eleven years. I was chief accounting officer and I talked to Wall Street. Back then, our most direct competitor was probably Caesars and I told Wall Street, ‘Look, somebody comes to town with a budget: $500 or $1,000. We want that budget the same as Caesars does. The difference between us and Caesars is they want it Friday night and we’re willing to get it by Sunday night.’ We want their money, but we want to give people more value for their money, so they’ll come back again.

“Those are the things I believe in. I’ve owned Four Queens … we’re in our 21st year. We bought Binion’s in 2008. We bought it at the worst time you possibly could. The economy immediately fell off the cliff. We had a situation where we were borrowing money. I had to call all my vendors and say, ‘Look, the summer’s slow. We’re going to get behind. We’ll catch you up in the fall.’

“Because we had a reputation and a working relationship with them, they bought into that. They said, ‘Fine.’ They worked with us. I fell behind as much as a million dollars in the summer and then in October when business got better, we paid it back.

“I couldn’t do it by myself. I couldn’t do it if I didn’t have my entire staff buying into all these philosophies. We have the lowest turnover in the business. Since COVID, it’s just been a nightmare for anybody to keep up the number of employees. But my employees have stepped up. They know we’re trying to find people and they step up and fill the gap.

“I know of casino properties that have 60 percent turnover in a year’s time. That's ridiculous. Turnover costs you money. Training people, retraining people, that costs you money. Turnover is way more expensive than most entrepreneurs give it credit. It costs you more than you think it does. But my people do it right. They take care of the customer and I trust them. I don’t have to worry about them. It might be my plan, but without them, I can’t make it work. Gotta have their buy-in.

“But we’ve survived. We’ve hung in there. A lot of that’s due to the employees, customers, vendors. You sit down and say, ‘Hey guys, we’ve got a problem. But we’re going to work through it with you and here’s how.’ You can’t run and hide.

“My bankers asked me, ‘Terry, have you thought about ways that you could maybe save money?’ I literally told them, ‘Look, I recycle paper clips and rubber bands. I buy my clothes at Kohl’s when they’re on sale. Don’t tell me about saving money.’ It’s always been part of my DNA to be very cost-conscious and not waste anything. I guess the employees have picked up on that same philosophy.

“We just stretch everything a little bit further. It sounds like I’m apologizing for doing something right.”

There aren't many photos extant of Terry Caudill, but you can see a good one here.

No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

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William Nye Mar-19-2024

Silver Strike

What I like especially about the Four Queens is they continue to have the Silver Strike token machines.  Harder and harder to find.  Also have the Silver Strikers Club tournaments and meetings.  To me a little bit more of older Vegas.  Great report, thanks.

Joseph Mar-19-2024

Silver Strike

But when is the last time they got new tokens?

Donzack Mar-19-2024

Success

Success in anything in life is all about good management. Government, religion, schools, sports, casinos, family and anything else you can think of. That’s what this QoD is all about. I don’t want to disrupt a great QoD with politics but I’d be interested in Terry’s views on the presidential elections. You can eliminate the last sentence if you see fit.

Tim Soldan Mar-19-2024

Shoe Shine

I wonder why they got rid of the shoeshine stand?

Bob Mar-19-2024

Wow

What an awesome interview and 2-part QOD! after reading this, anyone who walks through the doors of Binion's or the 4 Queens will feel a connection.  I for one will Spend more time Downtown when I'm in Vegas, and at the 4Q and Binion's. We always hit Hugo's or the Steak House at least once per trip, may need to do both next trip! and even if I drop a few hundred in the Casino... I'll never again leave either property feeling like a loser.  Vegas could use some more Terry Caudills!  Thank You Sir!

Parrothead Mar-19-2024

Silver strikes

Four Queens gets new silver strikes several times each year: Halloween, St. pat's day etc. However, the silver strike collectors clean them out in short order. I've stopped playing the machines because  I'm not there at the right time to try to snag a new one.

John Hearn Mar-19-2024

Hat's off to TLC!

I always knew I liked 4Q. My wife is a nickel VP player. I play quarters. We give all our VP play to 4Q. We eat at 4Q and Binion's at least once each per trip. Please thank him from all of us at LVA. The guy is a mensch!

black jack Mar-19-2024

Who needs resort fees?

I’m pretty sure that all the extra income from horrendous blackjack rules at both properties does wonders for their bottom line…

Brent Peterson Mar-19-2024

Great Stuff

Terry Caudhill has sold me on Four Queens and Binions. I used to stay and play mostly at Main Street Station, but have been looking elsewhere since the pandemic. I've stayed at 4Q before and played there often as they have relatively good VP. However, I will make it my go-to place to stay and play downtown (I rarely go to the Strip anymore).

Michael Mendoza Mar-19-2024

thanks for sharing the story of Mr. Caudill

I had no idea who he was..seems like there are a couple of properties I need to visit downtown...the ones mentioned and the Grand :)

Deke Castleman Mar-19-2024

This in via email

We have visited LV many times but prefer Downtown to the Strip. The FQ has great older games, the staff is very friendly and helpful. it's clean and well kept. And Binions is so rich with history! The stories are fascinating and with the other changes and improvements to that entire area, Downtown Rocks! In the early '90s it was filthy, drunks were sleeping on the sidewalks. It was scary!

Fumb Duck Mar-19-2024

Then, Not Now

Black Jack hit the nail right on the head. In "the good old days" both properties had decent 3:2 single-deck,  DAS and re-split aces blackjack games. Binions was very liberal with comps, even for $5 players. The coffee shop had great food bargains and was always packed, with waiting lines on the weekends. Binions also had great clam chowder, it wasn't on the menu, you had to ask for it.

Back then, like now, El Cortez sweated their blakjack games. I was in town when there was a gun fight it the casino.

AL Mar-19-2024

And he can do time-travel!

That is (or was, or will be, depending on how you look at it) one phenomenal accomplishment by Mr. Caudill, buying Binion's in Year 20008, meaning he had to travel forward in time 180 centuries to make the purchase in that year, and then travel back in time to the present. (Or could it be that either he or LVA made a little typo?)

Llew Mar-19-2024

4 Queens

4Q was the very first casino/hotel I ever visited. I went with my aunt. She was a retired Navy commander. Despite her ample pension and investment income, she lived very frugally on in Navy Heaven, aka San Diego. 
Once every two months, she would fly to LV. She always stayed at 4Q because she could get the “senior [room] rate” and played VP for four days.  
I took two trips to LV with her in the 90’s.  She was a morning person; I’m a night owl but we always ate dinner together.  Magnolia’s was her favorite restaurant. We had some great meals there together. 
I love 4Q and try to stay there when I go to LV.  I always smile when I enter the casino because, although she left us several years ago, I know my aunt is sitting at a VP machine there and having a great time.  
Thank you, Mr Caudill, for keeping 4Q as a place where we “medium rollers” can enjoy LV without felling ripped off and exploited. My aunt would be proud.

Llew Mar-19-2024

Another 4 Queens story

I remember one particular meal during my first LV trip with my aunt. Included in our comp were two drinks - one for each of us. My aunt didn’t drink and I rarely do but, of course, we wanted to use the comp. My aunt decided that I should have both drinks.
As I mentioned before, I am a night  owl. The night before our dinner, I had stayed up literally all night playing VP.  I slept most of the next day, so this dinner was actually my “breakfast.”  That first Bailey’s, which came before the meal, hit me pretty hard. By the time I was halfway thru the second, I was floating above the table!  
Needless to say, my plans to drive down the Strip that night to see the pretty lights were put on hold. Instead, I played more VP at 4Q and came out a couple hundred ahead!  Sometimes fate works in mysterious ways.  🙂

stephen rosol Mar-19-2024

GREAT CULTURE!!

take care of your employees, and they will take care of your customers----hmmm   I love the story, and enjoy the vibe which those values create

Rob Reid Mar-20-2024

Big Fan of Four Queens

We started patronizing the Four Queens about the time the strip casinos started their ongoing squeeze on player return and pricing increases around 2005.  We have returned 3-4 times a year ever since.  We are coming to Las Vegas to relax, gamble and enjoy some good meals.  We don't need and don't want to pay for all of crazy excess of the strip.  Four Queens offers a clean and friendly environment, a nice range of high quality restaurants, and I believe the best overall gambling opportunity for the averaged bankrolled gambler anywhere in Las Vegas--particularly for video poker player.  Gaming has been taken over by corporations that focus on nothing but continuous growth and short term profitability (which is a problem for all public companies).  Thank goodness there are still a few private operators like Terry that understand success in business is more than a short term fleece.

Louis666 Mar-21-2024

Four Queens

Love the Four Queens it is my place to stay in Vegas.But the rooms are getting a little tired and you know the rehab will be coming soon. After they do that be interesting how the pricing changes.

Question of the Day - 19 March 2024

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