The federal government will officially pronounce this month that the COVID pandemic crisis is over. This might be a good time to talk about how the pandemic has changed the way casinos function, if it has at all. For example, one obvious change is what has happened to buffets.
We offered the floor to a number of casino executives from around the country and, indeed, the world, but found no takers.
This is evidently a sensitive subject, given that gaming-industry profits continue to blow the roof off revenue records (including in the first quarter of this year, which set a gross-gaming-revenue record nationwide for the eighth consecutive quarter), while the companies continue to do less and charge more, as LVA subscribers, readers of QoD and this website, and Vegas veterans are well aware.
Of course, it's all in the name of "enhancing shareholder value," while at the same time executives don their tutus and grab their pompoms and lead the cheers for "enhancing the guest experience" (though we've noticed in this recent slate of earnings reports that they're not pretending as much to care about their customers as they have in even the recent past.)
But it's clear to anyone who hasn't been living in a cave for the last three years that all business was significantly disrupted by COVID and it has now, for all intents and purposes, settled into a new normal that's very different than what it was before the pandemic.
As far as we can tell, the most important change that the pandemic has wrought in general is the shift to remote work. In our view, this is most evident in the reduction in the number of restaurants. Nationwide, roughly 10% of restaurants closed (from 703,000 to 630,000) in the past three years and the trend continues. Some of that has to do with: eateries being perpetually short-staffed, food and beverage workers having abandoned their jobs, due to health and safety, problematic customer behavior, and more favorable conditions in remote office work. Meanwhile, the demand for dining out, delivery services, and travel in general has remained almost insatiable.
Locally, since the start of the pandemic, the closing of and turnover in eateries, both casino and local, has been the most we've ever seen. As the question states, the end of the buffet era is symbolic of this change and it cannot be overstated how disruptive this has been to the culinary ecology in Vegas, wherein 60 pre-pandemic buffets have shrunk to a dozen or so and all those buffet-goers have been unleashed on the 10% fewer dining options.
Another operational alteration has been with housekeeping. The pandemic compelled much more stringent room- and public-space cleaning requirements to be implemented and with the official end of it, the casinos are agitating for those regulations to be repealed. Senate Bill (SB) 441, which eliminates the daily room-cleaning requirement, passed the Nevada Senate by a vote of 18 to 3. Proponents of the bill -- casino representatives and lobbyists -- denied that it was a cost-cutting measure, arguing that upwards of 40% more guests are declining daily housekeeping than before the pandemic, but there's no doubt that rescinding the requirement will benefit the casino companies at the expense of hotel guests.
Another change we've noticed is in visitor demographics. It's clear to anyone who's been here since the shutdown that it's a younger and more affluent crowd and one of its expressions is the difficulty in filling the showrooms of the old-style extravaganzas and Boomer rock operas. Bat out of Hell was the latest in a string of closings, while Awakening at the Wynn, after spending $150 million on the lavish production, has "paused" for the second time in six months to try to retool in such a way as to attract more than the few hundred nightly showgoers who left the 1,500-seat showroom mostly empty.
We're sure readers can supply more ideas about how the pandemic has changed casinos and we expect plenty of comments about The Gouge and the disappearance of good games, generous comps, and attractive promotions. But as we mentioned in the lead, we're all too familiar with those changes; here, we wanted to dive a little deeper.
Tomorrow in Part 2, we take a look at the differences between pre- and post-pandemic from a veteran visitor who recently returned for the first time since the shutdown.
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Kevin Lewis
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William Nye
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Rick Sanchez
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Rick Sanchez
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[email protected]
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Boomer 55
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Doc H
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David Miller
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CLIFFORD
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