Food and Beverage Staffing Changes in Nevada Resorts After the Great Recession

Authors

Toni Repetti, University of Nevada Las Vegas
Liheng Zhang, University of Nevada Las Vegas

Type of Submission

Refereed Article

Abstract

With profit margins averagins 5-7% and labor costs of 30-55% of revenue, restaurant managers need to carefully monitor expenses to maintain these already low profit margins. This study evaluates food and beverage departments within Nevada casinos from 2000 to 2018 to see if managers exhibited expense preference behavior prior to the Great Recession. Three models were tested: number of employees, salaries and wages, and total payroll. Results show that in all three models, there is a significant decrease postrecession versus prerecession, with a decrease of 12.8% in employees, 4.5% in salaries and wages, and 9.1% in total payroll. Only the employee model shows a significant decrease during the recession with a decrease of 9.2%. The postrecession was also comparaed to the Great Recession, and total payroll saw a 5.1% decrease.

DOI

https://doi.org/10.7275/wjam-6934

Recommended Citation

Repetti, Toni and Zhang, Liheng (2020) "Food and Beverage Staffing Changes in Nevada Resorts After the Great Recession," Journal of Hospitality Financial Management: Vol. 28: Iss. 2, Article 4.
DOI: https://doi.org/10.7275/wjam-6934
Available at: https://scholarworks.umass.edu/jhfm/vol28/iss2/4