Summary: Isle Of Capri Casino Kansas City

As mentioned in the previous PESTLE assignment, economics, social, technology, legal and environmental elements all have a substantial effect on overall business and its revenue in the casino industry. Here I have outlined challenges faced and successes achieved in response to these areas as it pertains to Isle of Capri Casino Kansas City. I will begin with the economic implications and the effect is has on a corporate run establishment.
Currently, the challenge posed to the organization is the hiring, retention and development of employees given the cities current rate of unemployment. The unemployment rate in Kansas City is at a historic low. The average for 2016 was 4.4 which is less than the Missouri and United States average for 2016.
In November of 2016 the unemployment rate was even lower than this average at 3.8%. The last time we witnessed a rate less than 4% was prior to the millennium.
Low unemployment typically correlates to higher turnover and creates a very challenging labor market for the Food & Beverage industry as well as casino business operations as a whole. In 2012, unemployment in Kansas City was over 6.5% and turnover was under 40%. In 2016, we have seen an increase of turnover at 50% with 41% of turnover occurring within the first 90 days. While determining the reasons for turnover have proven to be difficult, internal research reveals that employees making the decision to leave the organization could be due to improper transitioning into job responsibilities, lack of managerial support and or lack of training.
The first response to this challenge of hiring and retaining employees falls on recruitment practices.
Effective recruitment is crucial to fixing turnover and low employment levels. A user friendly application is a must. Hiring managers are competing with every other employer in Kansas City for talent at all levels and nearly all age groups are using smart phones as their primary internet access. Making the application accessible only via computer or laptop, limits the number of potential hires due to simple lack of technological consideration. Social media recruiting presence is also critical and must be more readily accessible to allow changes to be made quickly. I believe that creating a mobile app could make this more achievable and give managers a competitive edge in the
market.
The organization’s leadership team began implementing initiatives with the focus to maintain our existing employees and to be more appealing to potential applicants. The team created 10 action steps with tactics, “what employees really want”. These initiatives broaden the perspective of the leadership team to enable them to better understand cultural, generational, and personality differences comprised in the workforce leading to better employee retention.
As an association, management is also trying to affect change through strict regulatory challenges. Missouri is a unique state in that an extensive gaming application must be successfully completed prior to finalizing the hiring process. The level 2 gaming application necessary for hiring consideration is an intimidating 34 pages. Potential job candidates are often lost during this process either because they cannot complete the gaming application in its entirety or they are not aware of information from their personal history that could compromise approval of the application or they are unwilling to obtain supporting documentation required as part of the approval process such as divorce decrees or marriage licenses. Something as simple as an unpaid speeding ticket undisclosed on an application Immediately terminates their chances of employment. In addition to these base line requirements, anyone with a felony conviction in the state of Missouri cannot work in any casino in any position regardless of the amount of time since the conviction or the severity of the crime. The hurdles created for candidates can be overwhelming and the burden on the business is significant. Such stringent requirements delay the hiring process, cause frustration among potential candidates and shrink the applicant pool making the ability to find qualifying candidates more difficult.
Employing and retaining talented staff is imperative to running a successful operation. With the newly remodeled buffet, Farmer’s Pick that recently opened in December of 2016, keeping back of the house kitchens and front of the house dining rooms fully staffed has been a challenge. However, customer satisfaction has not suffered and the initial opening of the buffet and succeeding weeks of service have been successful and profitable. Positive comments have been received from both familiar guests as well new diners coming to the casino for the first time. Traditional modes of marketing such as television commercials, ads, billboards, mailings, as well as social media has caused an increase in business thus increasing revenues for the Food & Beverage Department. As a result, guests are not only coming to dine, but also stay to game on the casino floor as well increasing revenue across the board.
However, construction of the buffet did not come without its own set of challenges. Construction that was set to begin in March of 2015, did not begin on time due to budget negotiations and bid delays. Construction did not actually begin until June. During the 23 weeks of construction, Food & Beverage revenue decreased exponentially which was to be expected. Although disruption of offering the buffet was mitigated by offering alternative dining in another on property restaurant, overall numbers did suffer. Since the opening of the buffet, average weekly numbers have remedied and dining covers are up nearly 52% from covers in the buffet prior to the remodel.
With the property being in such close proximity to two major interstates there are more opportunities for exposure to over the road truck drivers as well as surrounding retail developments. The advantage of being one of the few casinos with access to the metro bus line has also opened up transportation possibilities for those guests with limited transportation. The casino is less than ten minutes from downtown and allows the opportunity for businesses to utilize the casino for meetings and or luncheons. Prior to the remodel, Isle of Capri was not considered to be an acceptable venue for this because of its dated atmosphere and lacking quality of food. With the success of the buffet remodel and the hiring of reputable and talented chefs, positive reviews and recommendations are circulating. Public perception is already changing resulting in a substantial increase of business in just the past two months since its opening.
The Kansas City Port Development recently approved its growth project that has been in negotiations since late 2014.
November 28, 2016 marked the ground breaking of Union Berkley Riverfront Park. A $72M mixed-use development consisting of 410 luxury apartments, 12,400 square feet of retail space and a 400 space parking garage to be completed mid-2018. Additional plans for the property include sand volleyball courts, a dog park, coffeehouse and bar within Berkley Park. Completion of this project will only aid in increasing business for the casino and creates a positive forecast for the future of the organization.
It is expected that with the continued positive perception, increased revenues and continued exposure to the surrounding areas and markets that employment opportunities will receive better response thus bringing in talented candidates and in turn solving the casino’s low employment and retention problems.
The future of isle of Capri Casino has never been brighter. The area developments, successful casino operations and continued improvements not only keep the casino competitive with other casinos in the market, but make it one of the top leading establishments not only in the Kansas City area, but also extending its success above other casinos in the surrounding Missouri cities as
well.