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
Repository Citation
Repetti, T.,
Zhang, L.
(2020).
Food and Beverage Staffing Changes in Nevada Resorts After the Great Recession.
Journal of Hospitality Financial Management, 28(2),
1-35.
http://dx.doi.org/10.7275/wjam-6934
