Excellence is Still in the Execution

George McAuliffe and Nick DiMatteo Help With IAAPA Prep & Beyond

by Nick DiMatteo, Pinnacle Entertainment Group

At the world’s largest amusement trade show, it’s easy to be dazzled by lights and innovation. What has not changed in 20-plus years is this simple truth: Excellence is still in the execution. As I go into my 21st IAAPA Expo and George into his 37th, here are a few notes to help you prepare for the show and the upcoming holiday season.

1. Execution

Nick – Execution is the great constant. New ideas, new games and even new, amazing consultants all fall flat without it. If you’re not driving the experience, don’t be surprised that no one is.

George – This year’s IAAPA comes as our industry struggles to deliver sales increases. We’ve been here before in periods of increased competition, macro pressures on consumer spending and no hit-caliber product driving the business (although finding those hits is a big reason IAAPA exists). That’s why I love this theme of “Excellence in Execution.” When we’ve found ourselves in similar industry conditions over the years, those who doubled down on guest experience survived and prospered.

Nick – What makes the trade show floor so powerful is that it puts the newest ideas and products right in front of us. That spark matters, and it shows where the industry is going. It gets operators excited, but the real test comes after the show. The best new product can only shine if it’s installed correctly, staffed appropriately (if needed), merchandised well, and maintained effectively.

Whether it is a new restaurant or an FEC, modern businesses can succeed or stumble in the same way. You must commit to excellence.

The world is stretched thin, and while you may be unable to execute on everything you want, you can make the most of each moment or interaction. Now more than ever, “above and beyond” really does go above and beyond.

2. Maintenance

George – Clean, safe and fun are great places to start when delivering a great guest experience. FECs are “Fun Retailers” and the cliché that “retail is detail” certainly applies to us. There’s the obvious: a game has to be working to make money. But there are also more subtle things, like the button response time and target scoring, that must be in tune, along with making sure the display lights are working and the control panels and display glass are clean. It may be hard to drive sales increases, but, ironically, that’s because we have more competition than ever. Those who work the details of delivering a great guest experience will attract audience share.

Nick – Here’s an example: Before the summer season or winter rush, an operator may invest to get everything up and running. That spend hurts at the time, but peak season revenue can make it worthwhile.

Always do the front-end work. And don’t forget that your best repair people are ninjas who double as magicians. You may never notice their efforts because everything “just works.” Grab that repair person in passing and thank them for the hard work. Gratitude goes a long way. Maintenance excellence is most evident when no one notices.

3. Programming & Optimization

George – We were one of the first mall arcade chains to move to redemption in the 1980s, working with many of the growing number of redemption manufacturers through the 1990s, and were partners in Redemption Plus from 2008 to 2016.

One consistent rule through all of those times is that a redemption game will maximize its sales if the payout is maintained at the percentage for which it is designed. Unfortunately, payout management is one of the subjects most misunderstood by operators in our industry. To boil it down, understand how markup affects true ticket value, understand the target payout and range for each game, and continually monitor and react when a game falls out of payout range.

Nick – Customer behavior patterns shift. One year, there are a ton of corporate events, and the following year, it’s leaning into a younger demographic. As you evaluate your business as a whole, the games and redemption portion of your offering should follow. Like tuning an instrument, the same guitar can sing or squeal depending on calibration.

George – If “retail is detail,” the most direct parallel in the FEC world is merchandising. One of the great challenges – and this has been true throughout the years in the FEC world – is introducing change, economically, over time. After all, we have to keep the audience interested to keep them coming back. The beauty of redemption is that we can change the merchandise! Our client and go-to supplier, Redemption Plus, has institutionalized introducing merchandise change-over-time through their plan-a-gram program and trend focus. Their extensive training videos help operators use best-practice merchandising to keep things fresh and attractive.

Nick – Guest appeal isn’t about novelty alone; it’s about relevance, freshness and consistency. The new products we see on the show floor are vital because they provide us with the tools to refresh our mix, keep our locations exciting and offer guests a reason to return. It’s that newness plus execution that creates those special moments.

4. Culture of Excellence

George – Excellence is timeless. In the ’80s, it meant wiping down cabinets in smoke-filled arcades. In the 2000s, it meant training attendants in redemption rooms. All of those are still best practices today. It’s the coaching staff’s responsibility to support the team with the tools to “own” the guest journey. I’m reminded of the two guys out hiking who come upon a bear. “Let’s run,” says the one guy. “We can’t outrun a bear,” says the other. The first guy responds, “I don’t have to outrun the bear, I just have to outrun you!” You just have to deliver a better guest experience, every day, in every area of your business, to outrun your competition.

Nick – Every pre-shift check, coaching moment, small win and word of recognition is another thread in the fabric of your culture. When you take the time to notice the team and weave those moments together, you’re not just managing what’s happening, you’re crafting a culture of excellence, one deliberate stitch at a time.

Closing Thoughts

Nick – Be inspired by what’s new on the floor. That spark you feel when you see something fresh or clever is the fuel that keeps this industry alive. Take notes and pictures, take them home, share them, and let them ripple through your team. The trick isn’t just getting fired up, it’s keeping that fire burning once the banners come down and the lights fade. Make sure your people, your games and attractions, and your culture are tuned to deliver that same energy every day, long after the show lights dim in November.

George – One of the positives we can enjoy is better tax treatment for purchases. My understanding is that 100% of capital investment (for assets with a life cycle under 20 years) is now eligible. Being able to shelter profits from the tax man makes new game purchases more affordable. (Of course, here comes the disclaimer: I’m not a lawyer or tax accountant – and neither are the RePlay editors – so check with yours to confirm!)

See you in Orlando!

Nick DiMatteo is the Vice President of Operations and Business Development at Pinnacle Entertainment Group. He brings over 25 years of experience in food and beverage, arcade, route and inline entertainment, with a background in multi-unit operations and national-level strategy. Today, he works with entertainment providers to improve performance through operations, P&L and team development. Based in Texas, Nick is also an active mentor and the proud father of five. Visit www.grouppinnacle.com for more information or contact Nick by emailing [email protected].