by Matthew S. Robinson
There are more than 1,700 food and beverage (F&B) outlets at Indians casinos. As presented in the chart below, F&B outlets are broken down into eight main categories. For F&B outlets that fall into more than one category (and there are more than a few), the outlet was placed in the category which best represented it. Bars without food account for 16.5 percent of F&B outlets; bars with food account for almost 6 percent; bars and grills account for over 9 percent; snack bars/concessions/grab ‘n’ go outlets account for more than 6 percent; fast-food/quick-service restaurants (QSR) outlets account for the majority at 26.5 percent; buffets account for almost 4 percent; casual restaurants account for more than 22 percent; and fine dining restaurants account for 10 percent of total F&B outlets at Indian casinos.
F&B outlets can be further segmented – by size, specifically by the number of gaming positions by property. The table below presents the average number of F&B outlets per property by type for the various ranges of gaming positions at Indian casinos (for example, Indian casinos with 5,000 or more gaming positions have an average of 4.43 bars without food per property, etc.).
Following are descriptions and further discussion of the various categories and sub-categories of food and beverage outlets at Indian casinos.
Bars without food are essentially that, places to sit and have a beverage without any food options (other than possibly bar nuts, pretzels, popcorn or other salty snack). Of the more than 280 bar without food outlets at Indian casinos, approximately 40 percent are bars; almost 35 percent are bar/lounges (more expansive and comfortable seating); almost 12 percent are bars with live music/DJs, dance and/or nightclubs; while almost 8 percent are specifically sport bars. The remaining roughly 6 percent are a mix of cigar bars, tequila bars, wine bars, VIP only bars (for rated players), daiquiri bars, a tiki bar and even a brewery and distillery. The common element for these outlets is no food.
Bars with food are F&B outlets that offer various libations and then some type of food component ranging from traditional bar comfort food (appetizers) to upscale curated cuisine and everything in between, albeit on a limited menu basis. Of the almost 100 bars with food at Indian casinos, almost 25 percent are outdoor pool and/or patio outlets (for lack of a better category); over 22 percent are pub/tavern outlets; more than 17 percent are traditional bar/lounges with food (mostly classic American/ variety); over 16 percent are the “standard” bar with food (mostly American/variety); more than 8 percent are micro- breweries/breweries with food; and more than 6 percent are sports bars with food. The remaining 5 percent are a mix of tequila bars, wine bars and other specialty bars with food. The one thing that bars with food have in common is that they are bars with food, not food with bars. Examples of nationally-branded bar with food outlets at Indian casinos include Hard Rock Sports Bar and Tiki Bar & Dining at Margaritaville.
The bar and grill category is somewhat of a misnomer. Perhaps a better category name would be grill and bar in that food plays a much greater role in this category and includes both appetizers and full meals, as well as a more extensive menu. Of the more than 155 bar and grill outlets at Indian casinos, almost 58 percent are sports bar and grill outlets; more than 37 percent are the more traditional bar and grill (mostly classic American/variety); and the remaining more than 5 percent are Mexican cantinas. Examples of nationally-branded bar and grill outlets at Indian casinos include Toby Keith’s I Love this Bar & Grill and Tom’s Watch Bar.
There are more than 100 snack bar/concession outlets at Indian casinos, not including Indian casinos with less than 100 gaming positions or gasinos where they are commonplace. Snack bars/concessions are essentially grab ‘n’ go F&B outlets with limited menus and no dedicated or limited seating. They also often keep extended hours to accommodate patrons during non-peak periods.
Fast food/QSR (quick-service restaurants) outlets are the most common F&B outlet with more than 450 outlets at Indian casinos. Fast food/QSR outlets emphasize speed, convenience and affordability with limited menus and typically counter-service only. By type, almost 33 percent are coffee/bakery outlets; almost 18 percent are mix of classic American/variety; almost 13 percent are Italian (pizza/pasta) outlets; more than 8 percent are Asian outlets (noodles, classic Chinese, sushi, woks, ramen, pho, etc.); 7.5 are burger outlets; almost 6 percent are ice/cream/sweets outlets; almost 5 percent are Mexican outlets; almost 4 percent are regional outlets (Southern, barbeque, etc.); over 3 percent are sandwich outlets; more than 2 percent are chicken/poultry outlets; with the remaining more than 1 percent consisting of fish/seafood and soup. Examples of nationally-branded fast-food/QSR outlets at Indian casinos include Starbucks, IHOP Express, Sbarro, Panda Express, Wahlburgers, Ben & Jerry’s, QDOBA and Jersey Mike’s Subs.
Buffets in concept, offer customers value with a broad array of choices. However, they are also F&B loss leaders. With the onset of COVID 19, buffets, like almost all F&B outlets at Indian Casinos, temporarily closed. However, unlike many of the other types of F&B outlets, numerous casino buffets never re-opened. While traditional buffets at Indian casinos were already decreasing in popularity, the pandemic expedited the decline. There are currently just over 60 buffets at Indian casinos. This compares to the more than 175 buffets at Indian casinos about a dozen years ago – almost a 65 percent decline. For those still in operation, many such outlets have removed, or at least limited the traditional “all-you-can” format and/or added a menu-service option. Many of the former buffet spaces at Indian casinos have been replaced with food courts/food halls.
Casual F&B outlets include a diverse offering of sit-down restaurants with table service in a relaxed atmosphere. Of the more than 380 casual F&B outlets, over 42 are a mix of classic American/variety outlets; almost 23 percent are cafe/bistro outlets; more than 12 percent Asian outlets; almost 5 percent are traditional diners; almost 5 percent are Mexican outlets; more than 4 percent are regional (barbeque, Southern, etc.); almost 3 percent are Italian outlets; another almost 3 percent are seafood; with the remaining roughly 3 percent consisting of a mix of casual steakhouses, delicatessens (sit-down with table service) and specialty outlets. Examples of nationally-branded casual outlets at Indian casinos include Rock & Brews and Hard Rock Cafe. There are also several Guy Fieri and Gordon Ramsey signature casual outlets.
Fine dining F&B outlets feature sophisticated, multi-course dining experiences emphasizing exceptional food quality, elaborate presentation and professional service. Of the more than 170 fine dining outlets, more than 44 percent are steakhouses; over 18 percent are steak and seafood restaurants; almost 12 percent are classic American/variety outlets (i.e. supper clubs); almost 8 percent are Italian fine dining outlets; almost 6 percent are Asian fine dining outlets; over 5 percent are contemporary fine dining outlets; with the remaining 7 percent of fine dining establishments consisting of a mix of chophouses, seafood, regional and culinary kitchens. Examples of nationally-branded fine dining outlets at Indian casinos include Ruth’s Chris and Morton’s. Signature fine dining restaurants at Indian casinos include Todd English’s Tuscany and Gordon Ramsey’s Hell’s Kitchen.
Originally its own category, many food courts/food halls have evolved to include, not just the traditional multi-outlet snack bars/concessions and fast-food/QSRs, but also bar and grill and even casual F&B outlets at some locations, becoming culinary destinations in their own right. The common element of food courts/food halls is a centralized location, often with communal seating. Many of the various F&B outlets at Indian casinos, in some cases, are stand-alone at some gaming operations while clustered at a food court/food hall at others. At the same time, certain food courts/food halls offer multiple themed outlets that share a common back-of-house kitchen and/or cashier/check-out area. Accordingly, where individual outlets could be identified, they have already been accounted for in F&B outlet categories presented previously. The table above presents a breakdown of the types of F&B outlets found at food courts/ food halls at Indian casinos.
Food courts and food halls at Indian casinos, particularly the latter, have experienced rapid growth over the past decade or so. A dozen years ago, there were less than 30 food courts/food halls with an estimated 110 individual outlets. Today, there are more than 50 food courts/food halls with over 250 individual outlets, which equates to an 85 percent increase in the number of food courts/food halls and almost a 130 percent increase in the number of outlets at food courts/food halls at Indian casinos. The average number of outlets at food courts/food halls at Indian casinos has also increased from 3.9 to 4.8 outlets during the same period.
In the coming years, it is anticipated that additional food courts/food halls at Indian casinos will be added, further replacing buffets and other more traditional food and beverage outlets at existing casinos, as well as in all-new casino developments. Such venues provide greater diversity and price points in a centralized area, as well as greater flexibility for the owner to update or flip individual outlets. Depending on casino patron volume, we also anticipate an increase in the number of leased outlets in the various food and beverage outlet categories.
Matthew S. Robinson is Co-Founder and Principal of KlasRobinson Q.E.D., a national consulting firm specializing in the feasibility and economic impact of casinos, hotels, and other related ancillary developments in Indian Country. He can be reached by calling (800) 475-8140 or email [email protected].
