How restaurant variety indirectly impacts gaming for different casino worth segments

Abstract

Purpose

Casinos offer a variety of dining experiences to appeal to the tastes of different customers. The aim of this paper is to investigate the indirect impact of dining by restaurant type on gaming by worth segment.

Design/methodology/approach

Data from two hotel‐casinos were analyzed using time series regression analysis. Variables representing restaurant covers at steakhouse, buffet and casual dining venues were used to predict slot coin‐in for five customer worth segments.

Findings

Steakhouse dining was a significant predictor of slot coin‐in for high worth players, buffet and casual dining were related to low‐worth gaming volume, whereas medium‐worth players were impacted by a range of dining options.

Research limitations/implications

Regression analysis does not imply causality, and the results may not hold for other casino properties or sample time periods.

Practical implications

The findings have implications for the optimal restaurant mix at casinos and the types of offers that are given to different customer worth segments. This study also helps casino operators evaluate the profitability of each type of restaurant they operate.

Originality/value

The research fills a gap in the casino literature by segmenting customers using the same metric as casino operators, namely gaming worth. It provides new insight into indirect dining‐gaming relationships by investigating different restaurant types.

Citation

Tanford, S. and Suh, E. (2013), "How restaurant variety indirectly impacts gaming for different casino worth segments", International Journal of Contemporary Hospitality Management, Vol. 25 No. 3, pp. 328-345. https://doi.org/10.1108/09596111311311008