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

Document Type

Article

Publication Date

1-1-2020

Publication Title

Journal of Hospitality Financial Management

Volume

28

Issue

2

First page number:

1

Last page number:

35

Abstract

© 2020 International Association of Hospitality Financial Management Education. With profit margins averaging 5–7% and labor costs of 30–35% of revenue, restaurant managers need to carefully monitor expenses to maintain these already low profit margins. This study evalu-ates 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: num-ber 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 compared to the Great Recession, and total payroll saw a 5.1% decrease.

Keywords

Expense preference; Payroll; Great recession; Food and beverage; Labor

Disciplines

Food and Beverage Management

Language

English

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