Hard Rock International recently started Seminole Hard Rock Support Services, said Chairman James Allen. The new company will coordinate and consolidate a range of staff functions. “We expect the new company will help our operations become more effective and efficient,” Allen said. Seminole Hard Rock Tampa President John Fontana, who began his career at the casino in 1980, will manage the new firm.
Fontana noted on September 30, Hard Rock International acquired development rights for Hard Rock casinos in the western United States and international markets. “Obviously Hard Rock buys many things in bulk, and with Hard Rock International and Seminole gaming what we’re trying to do is combine the duplicated processing. It gives us more buying power. If you’re buying software for 40 locations instead of four, you’re going to get a better deal.” He said Seminole Hard Rock Support Services will focus first on information technology and procurement.
Fontana added he’s following guidelines established by Allen. “He is very, very adamant that the philosophy on the business side is you spend this money like it’s your own.” Considering Seminole tribal members who share the profits, “We have 4,000 owners,” Fontana said.
He cautioned, “It’s not some owner that’s not there, so watching every dollar smartly and being efficient is important. You’ve seen companies in the gaming world get in trouble by either overleveraging or they overextend, and they think the more casinos they own and operate the more money they make. And they spread their resources too thin. And then they get into trouble.”
Hard Rock Support Services will offer consistency throughout the brand, Fontana said. “The more things we can centralize, the more consistent the product will be around the world. It’s a very complex company, doing business in 70 countries and in I don’t know how many currencies, with different laws and customs. So consolidation is something you have to do really thoughtfully.”
Hard Rock International consists of 177 cafes, 24 hotels, and 11 casinos, including seven in Florida that generate $2.2 billion in annual revenue.
