LAS VEGAS (KSNV) — In recent weeks, no fewer than four national media outlets, including the Wall Street Journal and Business Model Analyst, have done stories on the Garden Buffet at the South Point Hotel Casino. The reason for the attention: it loses between $1.5 and $2 million a month.
That staggering number was unbeknownst to Tony Sanchez, visiting Las Vegas from San Diego. “My favorite part of coming to the South Point,” he said, “the buffet.” When asked if it’s the reason he stays at the South Point, Sanchez responded, “to have this buffet, play, and enjoy.”
Locals Michael and Connee Kennedy say they visit the Garden Buffet twice a month because it fits their budget. “We usually have a coupon we can use here because we also gamble here,” said Michael. And, he touched on the reason the Garden Buffet can afford such a seemingly massive monthly loss.
The tradeoff, according to South Point General Manager Ryan Growney, is “all them bright shiny slot machines out there,” he said, as he pointed to the casino floor.
“It’s twofold,” Growney said. “One, people love buffets. People come from The Strip. People come from all over Las Vegas to dine in our buffet because they love it. And two, we’re feeding 10-thousand plus people a day. If I didn’t get the 3-thousand plus covers out here on a daily basis, we wouldn’t be able to feed all the guests we have. And so, are you ever going to take it out? Absolutely not. We love this thing, and it’s here to stay.”
Growney says he’s not surprised at all that this not-so-typical business model is being noticed nationally, especially at a time when a Las Vegas icon seemed to vanish after COVID.
“Buffets are dying, and no one can believe it,” said Growney. It’s a Las Vegas staple forever, and I think people are honestly surprised that so many have been taken out. In fact, the majority of them. There’s not many left.”
But Growney also says he can’t help but notice how busy his casino is on a Thursday afternoon, and believes a big reason is the buffet, bringing people through the front door, along with free parking and a 3-to-2 blackjack payout.
“The buffet is one of those staples as well,” he said. “So again, it just goes to those old school philosophies that built this town, that made us the great city we are, and for us, a lot of them still work.”
While the Garden Buffet is a loss leader, Growney says the South Point still has a limit on how deeply it can slip into the red. “We have a threshold that we get to as a loss leader in the buffet. And, at some point, we might have to raise prices $1 or $2,” he said. “Obviously, right now everybody’s talking about it. Food’s more expensive, so we just keep an eye on it. And, when it goes to that level, we’ll bump it a buck or two, maybe once or twice a year. But we want to make sure we keep it very reasonable.”
