Cash-free profits
by ArabianBusiness.com staff writer on Tuesday, 11 September 2007
With an average of 1500 covers every Friday night, revenue optimisation and smooth delivery of service is critical to entice repeat custom. The club has also needed to capitalise on the high margins available with beverage sales, the concept's core product.
As evidence emerged of squabbles among patrons over incorrect change from bar areas during the hectic operation, the production company behind Peppermint made the switch to ticket payment for Sasha's appearance on July 12.
Cash is now switched to tickets, each with a value of AED10, at the entrance to the venue, located on Sheikh Zayed Road, and at dedicated payment stations inside the ballroom, around the staircase and next to the bars. Teams of staff are also equipped with General Packet Radio Service (GPRS) machines for patrons who wish to purchase tickets by credit card.
In a move that could come as a precursor to attempts for change by high-capacity bars, restaurants and nightclubs in the region, the introduction of the unique payment system has witnessed positive results from the offset.
"This is the first time I have witnessed this type of system being implemented in the Middle East, yet similar initiatives are widely present in Europe. We have designed and issued the tickets ourselves, and it has minimised work for service staff and definitely created greater customer satisfaction," says Tony Chouchani, events operations manager, Fluid Production.
"People were previously waiting up to half an hour to get served, and this has removed the responsibility of cash and hassle over allegedly incorrect change from the bar area."
The effect of the move has become so significant for organisers that turnover for beverage sales has already jumped by a staggering 15%, and a casino chip payment system is now in the pipeline.
"People typically show up at the club around midnight and leave at 3am, so we try to make the best of that time. Nightclub professionals in this region are sceptical about change, Chouchani comments.
Token payment has its critics, however. Some believe that among the hordes of patrons, some will overlook returning unused tokens for cash at the end of the night, yet Chouchani says reactions have been predominantly favourable.
"The response to this debut has been excellent, and we have a lot of further operational plans."
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