Friday, August 28, 2009

Efficiency “Tells”

One skill almost all good Poker Players possess is the ability to read their opponent’s behaviors and actions; this skill is called reading “poker tells.” A “tell” is an action or habit that is indicative of a Player’s hand, good players will often spend as much time watching their own behaviors in order to mask their “tells” as they do watching their opponent’s.

When I visit a Casino Property as a Management Consultant I also look for “tells” on how efficient overall operations are, as it is rare that one area of expense is managed well while another is not – think about it, how many times have you seen a Kitchen which consistently returns excellent Food Cost percentages be completely out of whack on wage line? A little out maybe, but with efficiency, I believe, one good thing usually goes with another.

So what are some of the common “tells” on Casino Operations efficiency? While I am sure everyone has their favorites, below are some classics, this time in the area of Food and Beverage. And remember, no "tell" is for certain, and neither are these:

PM Requisition Activity. Before I visit with the Chef I like to take a little trip down to the Warehouse to discuss the number of daily requisitions being generated by each Food Outlet. Most kitchens will have a standard morning order (Specialty Rooms such as Steakhouses should put in their orders the night before), but a well-run outlet should generate no more than one or two additional orders throughout the day. The Requisition “Tell” - too many PM requisitions are often indicative of organization and planning issues in the Kitchens – and may be driving too much Warehouse staff as well.

Scales on the Line. This is an easy one; if you see a lot of food scales on the kitchen line then the Cooks may be handling the majority of portion control. When things get busy, they go visual. Bad. The Line Scale “Tell” – Prep activity may need to be evaluated; portion control may be inconsistent with volume fluctuations.

Breakfast Fruit Plates. This one is a real classic, order the fruit plate at breakfast, then evaluate what is served to you in relation to the menu price. Produce is pure expense; if they bring you a quarter of a fresh pineapple with your $4 fruit plate then you will have your answer. The Fruit Plate “Tell” - too much produce = too much $$$.

Lunch Specials. Visit a Restaurant running specials late in the lunch meal period and see how many are sold out. In this case, sold out is good. The Lunch Special “Tell” – sold out late usually indicates solid planning and food cost management.

Beef Soup at Dinner. Another food cost classic, order a soup with a base made of beef stock in a Restaurant featuring steak or Prime Rib. How thick the soup is will often indicate how good the planning and production is, using up materials like Prime Rib in soup stock will hit food costs hard. Stew-like consistency is really bad, unless of course, you have ordered the stew. The Beef Soup “Tell” – too thick is too much.

Beverage Station Condition. Here is one for Casino Beverage, if there are self-service beverage stations on the casino floor check to see how clean and stocked they are between 5:00PM and 7:00PM – clean stations during this heavy arrival time generally means that the Cocktail Servers are out on the floor delivering that first drink fast. Yes, I know that the classic “tell” here is to walk the low-denomination slot banks to see how many self-serve cups are being used, but I’m lazy. The Beverage Station “Tell” – clean and stocked self-service stations in the early evening = first drink in hand fast = increased Guest satisfaction with Casino Beverage.

OK, I'm not really lazy (although my wife may occasionally disagree). Every area of Casino Operations has a unique set of “tells” on overall efficiency, today I have shared a few classic favorites with you while picking on the area of Casino Food and Beverage. I am sure you have your own favorites as well, if you want to share yours please drop me a line!

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