Encore Boston Harbor denied that it has shed jobs at its back-of-house service bars in favor of automated beverage dispensers, but still admitted that automation has and would affect some jobs.
The $2.6 million integrated casino resort opened doors in June 2019 in the Greater Boston area. It created 5,000 jobs, but local news outlets reported this week that it is now cutting some of these positions.
According to sources quoted by Boston 25 News, 70 bartenders, apprentices, and casino workers at Encore were told last week that their jobs were being cut. It also emerged that the displaced bartenders who worked at back-of-house service facilities were being replaced by automated dispensary machines that cocktail servers would operate themselves.
In a statement responding to media reports, Encore said on Wednesday that “it has been inaccurately reported that 70 positions have been eliminated and/or replaced by automated beverage dispensers.”
The property went on to explain that they are currently “right sizing our business as we continue to make adjustments to our organization based both on customer feedback and how best to meet our business needs.”
The statement read further that the drink dispensers were not unique to Encore and their addition would allow the property the opportunity to “significantly improve both the speed of service and provide a better guest experience.”
Automation Will Affect Some Jobs
Encore did admit that some jobs would be affected by the addition of the beverage dispensers, but said it could not project their exact number at the time.
According to Boston 25 News, Encore held on Monday a job fair for all the affected employees. However, the news outlet noted that there were not enough full-time or comparable jobs for everyone who turned up. The layoffs are set to take effect next Friday.
Encore said that they will continue to right size the business, but will “always do everything we can to provide alternate job opportunities for our employees within our organization.”
News about the job cuts at Encore emerge as the property is failing to live up to early revenue projections after opening with great fanfare this past summer. According to those early estimates, the property was expected to generate $800 million in gross gaming revenue during its first year of operation.
However, according to the latest financial figures released by the Massachusetts Gaming Commission, it generated just under $260 million between the last week of June, when it opened doors, and November 30. At this pace, the casino resort will certainly fall short of its $800 million target.
The slower-than-expected growth was blamed on rather weak slot machines performance. Unlike other properties in New England, Encore has failed to capture and has been unable to rely on a strong regional market.
To attract more local visitors, the property recently lowered its table game minimums and nixed parking fees. It is yet to be seen whether these efforts will finally push up its performance.
Source: Encore Boston not hitting lofty projections, blames soft revenue from slot machines
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