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Question of the Day - 19 May 2023

Q:

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.

A:

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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Comments

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  • Kevin Lewis May-19-2023
    From sheep to lemmings
    The customer demographic has changed, all right. And I think that the herd changing from sheep to lemmings has been by far the most significant difference. Even five years ago, would you have DREAMED that the casinos would have been able to pull all the shit they've gotten away with recently? But the now-99%-dum-dum crowd just doesn't give a flying crap about value, a tenth of a chance to win, or being treated better than dirt.
    It's sort of like waking up and finding that an order of fries at McDonald's now consists of three fries, two of which are burnt, is wrapped in a used Kleenex, and costs $14. Oh, and the guy at the counter throws them at you.

  • William Nye May-19-2023
    We will see
    We have not been to Las Vegas since late 2019, coming out again early June to celebrate our first visit in 2003, so a 20 Year Anniversary!  Staying where we did then, the Excalibur.  So this will be I am guessing an eye opening experience.  My main worry is the F1 traffic mess I have been reading about.  We will see!!!

  • rokgpsman May-19-2023
    Rental car costs
    The cost of renting a car has zoomed upward. The car rental places got rid of most of their fleet during the pandemic shutdown years of 2020 and 2021 because a lot less people were traveling. Then when visitors started coming back to Vegas there wasn't enough rental cars on hand so prices for them increased a lot. The rental car companies nationwide couldn't get more cars fast enough, plus there was a problem at the automakers with parts shortages such as microchips, end result was less vehicles produced. And once the rental car companies found out that people would pay more for a rental car there has been a reluctance to lower the prices back to pre-pandemic levels. 

  • Rick Sanchez May-19-2023
    Buffets
    Bring back the buffets!

  • Rick Sanchez May-19-2023
    @Kevin
    Don't forget that he will yell here take your fuckin fries. And don't forget to tip 25%

  • Jeff Darling May-19-2023
    The Good
    While there are alot of bad things post-pandemic, I'd like to take a moment to recognize the good (in my opinion) thing I discovered on my last trip in 2022:
    1. Cleaner machines on the gaming floor, I noticed multiple workers wiping machines down almost everywhere.
    2. Cleaner rooms at the places  stayed.
    3. People not breathing down my neck while standing in line for things, staying a safe distance.
    4. Common areas and restrooms being cleaned more thorough and regularly.

  • Lotel May-19-2023
    buffets
    I do not believe the casinos claim that it is cheaper to open, operate and staff 3-5 restaurants to replace one big buffet .  A buffet seems easier, cheaper to staff and operate.  

  • Gambler_7 May-19-2023
    Over
    The "Official announcement was supposed to be May 11th, I thought, it came and went, without a peep...

  • [email protected] May-19-2023
    Economics 101
    When Demand FAR exceeds Supply the Price Increases....and Value Decreases Significantly>>>(And the Smart Money says.......I'll Pass)

  • Hoppy May-19-2023
    Re:Sanchez - Buffets
    The M buffet - I can't wait!!

  • Boomer 55 May-19-2023
    service with a smirk
    @Rick n Kevin: He (or they) won't bother yelling; they've forgotten you already. The gratuity was added automatically, as was the Concession & Franchise Fee and the Venue Fee -- all part of the $14.    

  • Doc H May-19-2023
    "From sheep to lemmings"
    lewis calls those who visit Las Vegas these days sheep and lemmings. And this statement comes from the cheerleader clown who had the judgement to help get us a demented eggplant "in charge" who doesn't appear to know what planet he's on? Too laugh. But like enables like, right lewis?
    
    btw lewis, thought you were brighter than to stop your obsessive insulting of visitors to las vegas who prop up your entire local and state economy. But then again, back to your tribal party judgement of getting us all under the umbrella of a demented eggplant, forget that I ever tried to make sense of anything close to assuming reasonable judgement is involved here.   

  • Kevin Lewis May-19-2023
    Thank you Doc
    You must be a real gas at parties!

  • gaattc2001 May-19-2023
    The Las Vegas Experience was deteriorating long before the pandemic. 
    Bad games, neglected maintenance, reduced comps, nuisance and garbage fees, etc. were already in place. Covid just gave the industry another excuse to reduce staff and costs even further and tighten up even faster. 
    
    The rebound after the reopening and the advent of the millenials ushered in a new era of prosperity; but that won't last. Eight straight quarters of record profits will not become sixteen. Sooner or later, inevitable economic downturns will take them by surprise. Then they'll discover that they've overbuilt far beyond sustainability and systematically alienated their traditional once-loyal customer base. 
    
    And the longer they can stretch it out before it all implodes, the worse it will be when it finally does.

  • David Miller May-19-2023
    The Pandemic
     IMHO, the pandemic just accelerated the changes Vegas was making. The amazing part to me is the incredible increase in visitation and the fact that the majority have apparently no concerns about the prices that they seem to willingly pay. You can not really blame the casinos for "making hay" but this price gouging and acceptance of the gouging will not be sustainable. With the economy on the verge of becoming a full blown recession, those who are spending without concern will be hard pressed to return to Vegas. Some people will learn the hard way about their lack of concern for their egregious spending.

  • CLIFFORD May-19-2023
    WHO?
    EGGPLANT!  WHO MIGHT OR WHAT IS?  TRUMP IS ORANGE SO IT MUST BE PUTIN?  KEVIN - KEEP UP THE GOOD WORK....DON'T CARE WHAT DOC H SAYS.  WOULD RATHER PARTY WITH U...