How to Achieve Higher Response and Profit from your Food and Beverage Offers

 By Sarah Procopio, Raving Partner, Database Analytics

There is a trend right now to offer casino players a general property credit as part of their player offer package. Three words—DON’T DO IT! Here’s why: decreased outlet control for food and beverage offer redemptions equates to:

1.    Lower perceived player value

When you understand the food cost for each outlet, you can use it to advocate on the player’s behalf to provide them with the highest value offer possible. This equates to high perceived player value, which translates to a lift in response. For illustrative purposes, here is some simple math:

If the profit margin at your steakhouse is 2%, and the profit margin at your Italian restaurant is 20%, that means a $100 steakhouse offer costs the property $98, while a $100 offer for the Italian restaurant costs the property $80. The lower cost at the Italian restaurant can be leveraged when putting together player offers. Here’s how: For a $300 player, the $100 steakhouse offer puts you at a 33% player-reinvestment percentage ($98 cost / $300 Theo), while the $100 Italian restaurant offer puts you at roughly a 26% reinvestment rate ($80 cost / $300 Theo). You can either pocket that 7% difference for your casino or use it to boost the player offer to a higher amount. 7% may not sound like a lot, but in volume, it adds up and your players will notice. You know as well as I do, players always want more, and you just found a way to give it to them. Boom! Player response rate boosted! Why would you ever cheat yourself out of this opportunity with a blanket property credit offer?

2.    Diminished cost control and profit margins

Just imagine what would happen to your marketing budget and player reinvestment percentage projections if all of your players decided to use their property credit for the highest-cost outlet on your property. It wouldn’t be good, right? Costs would skyrocket, and profitability would plummet. Our job is to protect the company bank account as if it is our own; providing players with the virtual equivalent of a blank check to your hotel and casino’s bank account isn’t the way to get it done.

3.    Decline in guest service levels

We all know providing guests with the best possible service results in higher player retention rates. Players don’t like to wait, and they want the highest possible service levels, just like we all do. So why not do your best to give it to them? Accurately projecting the volume you send to each food and beverage outlet on specific days, allows your food and beverage team to staff accordingly and provide players with the best possible service.

What are your property goals?

Depending on what your property goals are, behavioral data that includes historical information on the food and beverage outlets that your players have visited can be leveraged.

For example, if player profitability for high-level player segments is not the primary concern, but increased retention and visits is the focus, providing food and beverage offers to their favorite food outlets – such as the steakhouse – may make sense even though the cost at this outlet is high. The same data can also be used to cross-market outlets that haven’t been tried by players, or are infrequently visited.

Encouraging players to visit multiple food and beverage options can increase their perceived value of the overall property if they find that they enjoy a variety of offerings. Providing food and beverage outlet-specific offers to your players also helps them paint a picture in their mind of what their visit will be like.

From the customer’s perspective

Thinking about visiting a property to spend a general property credit versus imagining going to the Italian restaurant and ordering the lasagna are two very different experiences. The clearer the picture you paint for the guest (in this case, specifically naming the outlet), the more emotion you evoke, and the higher the response rate. I understand it is tempting to forgo internal team debates about offer types and avoid coordination of offers. I also understand that, from a marketing standpoint, executing outlet-specific food and beverage offers is a challenge. But the challenge is worthwhile, and has a high impact on the bottom line.

View this article as a pdf: 5-8-17HigherResponseProfitFromYourFoodAndBeverageOffers – Procopio.pdf

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  • Lose Your Shirt, Not Your Shorts, In Food & Beverage – Navigating the truths of a profitable organization Read Article
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  • “Boots on the Ground Marketing” – You don’t have to be a mega destination casino resort to offer your guests a memorable experience Read Article


Sarah Procopio, Raving Partner, Database Analytics

You can meet Sarah in person at Raving’s Host Development Conference at Bally’s Las Vegas, July 17-18. She will be a panelist during the session, “Managing PD Metrics” on Tuesday, July 18. Before you register, check with Amy for your Raving Client discount code, email her at [email protected] or give us a call 775-329-7864




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