Las Vegas Casino News Source: http://www.inbusinesslasvegas.com
Cannery hopes to grow with North Las Vegas
By Liz Benston / Staff Writer
The Cannery Casino is thinking big.
Located in one of the fastest-growing areas of the valley, the Cannery — centrally located and at least three miles from any casino — had little choice but to supersize.
"It became very apparent that we were going to be undersized very quickly," Cannery General Manager Frank Vignola said of the property's faster-than-anticipated expansion plans. "North Las Vegas is growing at incredible levels and we want to grow with the community."
Less than four years old, the property is also going to great lengths to cement its competitive position in a region that has the largest pipeline for suburban casinos in the valley.
While the passage of a 1997 state law has severely restricted the spread of unplanned casinos in residential areas across the valley, North Las Vegas has four undeveloped parcels of land already zoned for casinos.
Over the past few months, the property has opened a nonsmoking poker room, a modernized race and sports book and a 14-screen digital Galaxy movie theater. In August, the property expects to open an Italian restaurant and deli in addition to a 300-seat bingo room. Last year the Cannery added just over 1,900 parking spaces and 15,000 square feet of casino space.
At just under 100,000 square feet, the 201-room property has room to grow on its Strip-sized 28 acres. Vignola says it will take a while to absorb the latest expansion before contemplating another.
The Cannery is more than just another one-off casino. It is a brand that is jockeying for the No. 3 locals spot behind Station Casinos and Boyd Gaming Corp. It is also poised for expansion as owners begin plans to build a second Cannery casino at the site of the aging Nevada Palace on Boulder Highway.
The property has experienced double-digit revenue growth over the past year and hotel occupancy in the 90 percent range.
Fueling growth is the burgeoning North Las Vegas population combined with the property's creative and economical approach toward marketing.
While competitors rely more heavily on television, print and billboard advertising, the company's slot club — a major part of any locals marketing program — is bolstered by a folksy newsletter that is distributed to some 300,000 homes in the north valley.
The monthly newsletter, which resembles a newspaper tabloid, contains profiles of employees, customers and goings on at the Cannery as well as the Rampart casino in Summerlin — the owners' second Las Vegas Valley property.
Rather than waiting for potential customers to stumble across the only major casino for miles around, the property is stuffing the newsletter into residents' mailboxes regardless of whether they are customers or casino patrons.
While Vignola won't disclose the number of slot club signups or how many become regulars, he says the multi-page newsletter is a significant marketing tool for the property.
The Cannery's digital movie theater, which features giant theaters that can accommodate nearly 600 people, wide and well-lit hallways, party rooms for kids and food trays is another example of how the property is proactively addressing the competition.
Station Casinos and Boyd Gaming Corp., the two largest locals casino operators, have plans to build in North Las Vegas in the coming years. A third operator, Olympia Group, is hoping to build another casino in North Las Vegas on land that isn't yet zoned for casinos.
"We always operate as if there are three places across the street from us," Vignola said. "It's part of our culture to operate as if someday inevitably there will be some major players in North Las Vegas."
Another draw is the property's permanent indoor-outdoor entertainment venue called The Club. The venue can accommodate smaller groups inside or can be expanded outside for crowds of around 2,000 people. From spring through fall, the Club — which opens into a courtyard and a connector street that's little used on weekends — hosts sprawling street festivals that draw thousands of people from North Las Vegas and beyond.
Entertainment acts and festivals, which have cost as little as $10, are a cornerstone of the Cannery's identity, Vignola said.
While drawing locals, the entertainment venue — with enough high-tech equipment to require little setup for concerts — has attracted acts that might not have otherwise come to North Las Vegas, he said.
"At first it was difficult to attract (acts)," he said. "But they've seen the quality of the sound and staff. It's been word of mouth."
The Cannery is the newest of North Las Vegas' eight or so casinos. But Vignola uses words such as "blue collar" and "unpretentious" to describe a property that would look at home in more upscale suburbs.
It's a welcome change for Vignola, a Strip veteran who joined the North Las Vegas property in September 2004.
Vignola ran the Excalibur when it opened in 1989 and later jumped to the Aladdin. Bill Paulos, one of the partners in the Cannery and an executive with former Excalibur owner Circus Circus Enterprises, was eyeing him for the Cannery spot. But Vignola took a job at the Aladdin instead when the Sept. 11 attacks delayed the opening of the North Las Vegas property.
Vignola said customers are pleasantly surprised by the Cannery's good deals and splashy, pinup girl-themed look in the midst of North Las Vegas' industrial core. They include casino newbies as well as savvy gamblers. And they don't demand much.
"All they expect is a friendly greeting and a fair gambling experience," he said.
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