The situation
The corporate office overseeing a casino property was concerned about a decline in revenue. Video conference calls with the casino general manager and a review of the budget-to-actual variance left the underlying questions unanswered — the numbers showed a problem, but no one could explain why it was happening. Ownership requested an on-site visit to bridge the communication gap.
What we found
Only by physically being at the property could these issues have been identified. The casino’s air conditioning system was not working, and the parts needed to fix it had gone unordered for an extended period, creating an uncomfortable atmosphere for players that reduced foot traffic and drove regulars to seek other gaming options.
At the outdoor bar, several of the frozen mixed-drink machines needed servicing. The resulting delays caused some customers to cancel their orders or avoid ordering altogether, waiting only until an acceptable line had formed.
In speaking with human resources, it became clear that additional hiring for support staff was underway — hiring the current staffing guide didn’t support. Existing staff had grown unsupportive of the general manager and were doing the bare minimum, prompting the GM to bring on more people. Because local law makes terminating tenured employees a lengthy process, this had become a growing, entrenched cost. Together, lost revenue from declining and early-departing players, long lines at the outdoor bar, and rising labor costs accounted for the budget and year-over-year variances.
What we did
The solution was straightforward: put the property on a contracted HVAC service to prevent equipment issues from going unaddressed again, require a monthly report on operational equipment that affects the player experience, and have HR notify the corporate office of any staffing changes along with reporting on staff complaints as they arise.