I've been coming to Las Vegas for 40 years and I can't remember the last time I saw a loss-leader meal. In the old days, almost every meal was a loss leader. Are there any left? And if so, where did the rest of them go?
According to Jeffrey Compton, a long-time observer of the casino scene, writer of our Living Local blog, and publisher of CDC Gaming Reports, "Advanced player tracking is much of the reason. Casinos can now target whom to send offers to, especially folks who stay and play versus folks who just take advantage of the offer and leave.
"Another reason, though, is the increased cost of food labor. Most of the casinos in Las Vegas are under Culinary Union contracts and while the union has done an excellent job in getting their members better wages and benefits, the effect on the casino’s bottom line over the past two decades has been substantial. Fewer and fewer restaurants in Las Vegas casinos can be operated as loss leaders."
Yet another reason is that many restaurants, especially on the Strip, are four-walled, meaning they rent space from, but operate independently of, the resort. Loss leaders are meals and deals sponsored specifically by the casino in order to attract players, and since independent restaurants don't benefit directly from casino promotions, they have little to no incentive to supply the landlord with gamblers.
All that said, there are still plenty of loss leaders in Las Vegas. All you have to do is take a quick look at our Top Ten and you'll see one of the greatest loss leaders of all time, the $7.99 steak dinner at Ellis Island, which also has other excellent meal deals. The Feast buffet, South Point hot dog, Skyline shrimp cocktail (and a good one at the Fremont), and breakfast at Arizona Charlie's are all further examples.
Gone from the Top Ten is a great $4.99 lunch special at Ocean One at the Miracle Mile Shops; around the corner of the mall is an excellent $4.95 breakfast at Rock Bar. The Longhorn Casino out on Boulder Highway usually has at least one great loss leader and we recently ran a QoD that listed steak and lobster meal deals. The local bars also have lots of good food specials, which we cover in comprehensive detail in the Advisor month in and month out.
They're not as easy to come by as they once were, there's no denying that. You have to look for them. But if you know where (and LVA is an excellent place to start), you can still find loss-leader meal deals all over Las Vegas.
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