Executive Q&A
July 1, 2008
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| Paul Ryan started his gaming
career in 1980 as part of the opening team for the Golden Nugget in Atlantic
City, where Ryan said he was lucky to work with Paul Patay, then the vice
president of food and beverage at the property and who was considered the first
high profile food and beverage guy that came into Atlantic City. “He was
somebody that you could really learn from,” Ryan said. Ryan quickly became food
and beverage manager and stayed with the property for five years. In 1985 Ryan
was among a group that were recruited by Donald Trump had just recently bought
the Atlantic City Hilton. He remained there for two years. During that time,
Trump bought the controlling interest in Resorts International and Ryan joined
that property as director of food and beverage. He stayed in that position for
seven years until the property was sold to Sun International. Ryan moved to Trump Castle
as it was being rebranded to Trump Marina. “It really seemed like an exciting
project and it turned out to be a great move because it was exciting things I
was ever involved in. We went into a property that was a terrible performer and
over a very short time we really created something that for its time was unique
to Atlantic City,”
Ryan said. In 2000, he was given the responsibility for all the food and
beverage hotel operations for the Trump Hotels as executive vice president of
hotel, food and beverage operations from 2000 to about mid 2005. There was also
a two-year period where he served as the chief operating officer of Trump
Marina. In late-2005, after the restructuring of Trump Casino/Hotels into Trump
Entertainment Resorts was complete, Ryan met the owners of Fantasy Springs and
saw the property. He and several of his fellow Atlantic City peers were soon on their way
out west to join Fantasy Springs. “We said to ourselves, ‘if we’re as good as
we think we are then we need to shut our mouths and get to work.’” Ryan said.
“So that’s what we’ve been doing and it’s been a great run. Fantasy Springs is
clearly the leader in this market and we’re very proud of that.” |
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After a quarter of a century on the East Coast, Paul
Ryan left AC to become general manager at Fantasy Springs Resort Hotel & Casino in California
You’re a veteran Atlantic City operator
who, just over two years ago, moved out West to join Fantasy Springs as its
general manager. How have you enjoyed the change?
It’s been quite a change and I think that
there are a lot of cultural differences between the East Coast and the West
Coast. The East Coast is certainly more European in its roots than the West
Coast and the weather is bit different, but I think people are people wherever
you go. I certainly enjoy California, the
weather is really beautiful, but most of the people I work with are from New Jersey so it’s
really been more of a change of climate than a change of people.
Tell
us some of the things you’re going to be doing at the
property…
One of the things we did when we first came
out here was we looked at the property and we really felt it needed an identity
and more importantly it needed to really find who its customer was and get
really focused on who that customer was. So we went out and did a couple of
studies. We did a zip code study to find out where are current customers were
coming from. We also did a market analysis of all of our competitors and who
their customers were. When it was all said and done we looked at ourselves and
agreed that this was a niche we could fill and really create a brand that would
be unique to Fantasy Springs. So we really started to really put that vision
forward with an entertainment program that was geared towards a demographic
that was probably 40 to 60 years old. So we started booking headliner acts that
really appeal to that group. What we’ve learned over time is that It’s
basically classic rock-n-roll, certain southern rock acts … but one of the
things we found interesting was our best success has been with female
superstars. We’ve had Diana Ross, Stevie Nicks, and Reba McEntire, and really
find that that is what fits our property the best.
When I first came out I was
joined by Linda Powers who had been a marketing executive in Atlantic City for a long time. She came out
with me two and half years ago. We put this concept together called The Rock
Yard where we decided we would put on free concerts in an outdoor setting and
really take advantage of the fact that the resort has this beautiful college
campus type of layout. In Southern California
we really don’t have weather. Our weather is just whether it’s windy or not. It
really lends itself to having an outdoor venue. After we opened The Rock Yard
we went to the top of the building, the roof, and we created a nightclub we
call Velvet Top. We opened it with celebrity DJs from the Los Angeles area and we’ve also done quite a
few exciting celebrity events. Our version of an L.A. celebrity party. It’s really become
probably the most exciting nightclub destination in our market. The marketing
studies said that there was a belief that Palm Springs was a place were people
would play golf, have dinner and then go to bed early. But that really isn’t
the case. There is a cross section of a more traditional American population
here that were looking for things to do at night. So we just kept adding to the
facility. We now like to look at ourselves
as the only full service facility in this market.
What
are some of the major changes coming in the future?
We brought in an East Coast
architectural firm, SOSH, and we asked them to build a master-planned facility.
We have a lot of real estate on our reservation and we wanted to be sure we
were looking out for our future. We have developed a pretty comprehensive
master plan that includes room inventory increases, but also includes the
development of a lifestyle center that we are going to build on a 100-acre
parcel that we have contiguous to the resort. Our first project in the
expansion will be what we’re calling the Casita Village.
Casitas are small villa type homes in this part of the country. It will all be
very high-end suite product on our golf course.
How different are the
demographics between the Atlantic City area and
the Palm Springs
area?
I really think there are
more similarities than differences. The Palm Springs
area, like Atlantic City,
is a regional buy. For the first 10 to 15 years in Atlantic City all of us operators were
desperate to create this destination resort and it hit us like a ton of bricks
one day — there’s nothing wrong with being regional destination and you can
make a lot of money at it. A lot of operators became very successful recognizing
that a regional buy and a local buy is not necessarily a bad thing. Here in Palm Springs we have a
similar situation going on. We have a growing population of growing business,
we have a regional market which is in the San Bernardino,
Riverside area, and we have that destination customer who is coming down from
the Pacific Northwest. So it has a lot of
similarities to Atlantic City.
It’s really a question of identifying those segments and marketing to those
segments and trying to complement you’re business with both regional and
destination customers.
What about retooling with the actual casino itself?
That’s another area we are
currently addressing. That’s another job we hired (public relations firm)
Masterpiece to help us with. They compared various players club programs and
based on the analysis we are launching a new program which we expect to be
active by July where were changing to a three card tier system and changing
around a lot of our points and credits. Southern
California is a market where promo costs are actually less than
they are in other jurisdictions. You can’t tout alcoholic beverages in California, which saves
us money and as an operator is probably a good thing anyway. Our reinvestment
rate is significantly less than it was when I was working
it Atlantic City.
What is the most
critical element in succeeding with a property?
I’ve always felt the most
important element is being aware of what the actual experience is to your
customers and that you can think like the customer. The best operators I’ve
worked with throughout my career were the people that thought like the
customer. I’m still waiting for the day that a customer sends me a letter that
says, “You’ve got a really great filing system,” but that’s just never going to
happen. And if you’re focused in on the experience and you’re really sure what
you’re offering the public is exciting and what the customer is looking to buy.
That’s first and foremost the most important thing. You can be greatest well-oiled
business machine in the world but if you don’t have any revenue to deal with
it’s not really going to matter. Our business is one where the entrepreneur is
the one who I’ve always respected the most. I think in our business there are
some operators that we can all agree has good vision and an entrepreneurial
spirit. And then there are operators who are worried about every little expense
line. So for me personally it’s been more about the customer experience.
In
the last year Fantasy Springs has really stepped up its efforts on both
environmental and charitable events as well.
We’ve been sponsoring on the cable company out
here, Time Warner Cable, we’ve been sponsoring a lot of green messages and
we’ve developed commercials that run pretty heavily reminding people that they
can do things that would make them more responsible to the environment. This is
an issue that is very important to my owners, Cabazon Band of Mission Indians.
They’re very dedicated to these kinds of efforts and to always think green.
They’ve had this land for thousands and thousands of years and culturally they
have a deep respect for it and they want to be sure everyone else is too. As
far as charitable organizations, we feel that we are a big part of the community
and that we need to give back. We do it in a lot of ways. We support most of
the organizations and causes in the area. We feel it is a part of being
responsible member of the community.
Who are some heroes
and mentors you’ve worked with?
I worked with Paul Patay
for 14 years. He was a phenomenally talented executive and what I learned form
him can’t be measured. Merv Griffin was a fantastic experience for me. I
learned from Merv Griffin that good guys can finish first and that was an important
lesson for me to learn when I was in my late-30s. I spent a lot of years
working side by side with Merv. He loved hotel operations and all the things we
did in the hotel side of the business. He loved the marketing with John Belisle
but he loved the hotel just as much. I was fortunate to spend time with him. I
would also put John Belisle in this category. I think that John is one of the
most, if not the most, dynamic guy that ever worked in Atlantic City, at least in my experience and
I was there 30 years. He was just one of those people that was larger than life
and very charismatic. I also had a fantastic eight-year relationship with Mark
Brown. When I mentioned that the best operators think like customers, that’s
Mark Brown. He has natural instincts as to what a customer wants. It’s a gift
that he has and I feel very lucky that I was able to spend those years with
him. It’s funny but since I’ve moved to California
I’ve developed an even greater respect for Mark because I’ve been given the
time to reflect back on how difficult those years were for the Trump
organization and how he was able to keep that company strong and get it
financially restructured. I don’t know if he really gets the credit he deserves
or not.
How would you
describe your own management style?
I grew up in the business
as a
dishwasher
then busboy then a waiter then a manager … so I’ve had a career where every
step of the way I’ve been very involved in details. I think my personality and
the nature of who I am is a very detailed person. But in working with other
managers I also believe that a manager has to be given the right to manage.
That’s something that you learn over time and you learn it through experience.
I believe as
I’ve
gotten further along in my career that I need to surround myself with people
who are more talented at what they do than I am at what they do.
That was transformation that took place with me when I became vice
president of hotel operations. In all my years in food and beverage I could do
every job and that sort of gives you a certain level of confidence. When I
transferred it was very obvious that I was dependent on people for the skills
that they brought to the table. Whether it was telephone services for the front
desk, sales and marketing — you really have to respect the department head’s
ability to run their area.
In the two-plus years
you’ve been with Fantasy Springs, what’s the biggest lesson you’ve learned?
We’ve had a lot of
challenges and obstacles and I have to say that I was very impressed with the
work ethic. Everyone really dug in and worked together. That was a great find.
I guess I’ll just call it great ownership. It’s very nice to work for a company
with great ownership. Another thing is the employees in this part of the
country seem to have a natural tendency for personality that fits in well with
the hospitality industry. I never fail to be impressed by the people who live
here and work here. It’s very difficult when you have a market where people
have a lot of skills but lack the personality. It’s much easier to teach nice
people skills than it is to teach not-so-nice people to be nice. The staff here
is great and it’s really refreshing.
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