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Landry’s CEO Tilman Fertitta on the outlook for the economy and consumer spending.
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-- the special edition of money open for business we are live in Houston Texas to dig into what makes this city so business friendly.
For such a wide variety -- industries in here fun -- -- with more than 111000.
Restaurants to choose from a -- happen.
You study and eat out more than residents of any other city in the US at least four times a week.
The national averages roughly three so what is in the secret often is booming business and who better to tell us been -- for TF.
Billionaire sole owner chairman.
And CEO of Houston based chain landry's it is the country's biggest privately owned restaurant entertainment and gaming company thanks.
So much for the pilots are glad to be here to eat that they do it's amazing more than any other city that people just eat out every single night.
You have 400 properties -- and 34 states thirty that are international that your headquarters are in Houston.
Because I was born here.
And and grew up here and and it's it's such a great business community due to work for.
Here in east and there's so many.
You know different demographics of people and it's it's and it's an easy for work state and -- and -- working here the cost of living is low here you have 50000 employees.
That's a lot of people to -- -- -- you were talking about jobs here it's one of the biggest issues right now are you hiring more people.
We are but you know we continue to grow and and and expand the business -- It being used and remember we don't get the highs or lows of the East Coast in the west -- and and because of that it's always more of a flat -- and then but it's always been a good work environment here in Texas.
What is -- -- a bird's eye view into what's going on with the economy really because across your chance for rain forest Golden Nugget about what comes all the way to Morton's.
You kind of have the whole spectrum of pricing what is going on.
Across the country with Americans right now -- America's back you know number -- thank -- absolutely people are eating out you know we did.
You know I said it's not too long ago and they got -- -- that if you didn't read the newspaper watch every program I think there.
The economy is a little better than than we talk about it really and all the time.
Is it -- little -- from month amount yes but that business compared to Ole -- it's much better after the consumers definitely spending money.
There's -- need to get better.
Yes but the consumers after spending money do you see a difference across the price point of who's doing better -- history -- you know believe it or not really you know all price points when he gets a little choppy it's more the higher end.
But but -- it's really he's the consumer spending money at all price point yeah -- -- they're you know people are out you know.
The convictions are back in Vegas about in Atlantic City -- and people are spending money not quite the way it was but it's still good.
Are you investing putting new money to work are you looking -- -- businesses to fire opening up new restaurants are you concerned about the future now absolutely and in it we have never slowed down through acquisitions or new growth.
Basically the last three or four years we just opened up a great entertainment news it right here in Houston.
And have continued about change and open new restaurants yes yeah I was looking at your business at.
The margins when you take over company -- so -- Rainforest Cafe 888.
Ticket from a fourteen point 3% margin to nineteen Golden Nugget thirteen to 22 -- across -- higher businesses.
What do you do when you -- business to make it better what's your formula.
Well you know for first off -- understand the numbers and and and one of the things we do is is understand our entertainment hospitality restaurant business.
And and no this is what should labour costs should be this is what your food -- should be this is what.
Here other than -- -- apparently we're looking around is screen right here and you could see across the board.
-- an end and so what we do wins that we get to that goal we know what it should be -- and we don't stop until we get it there and and I think that's what most people.
You know don't do when and where opportunist and we see.
That this is where it needs to be and we do whatever it takes to get it there when you buy businesses and manager know he's gonna get -- is that radar I don't know honestly you know what's amazing is we always keep the operations people now -- it's been great for used in.
That we've closed down these corporate offices all over California and Minnesota and and Chicago and everywhere else is we bring them -- back here to used in.
Secure operations people really just want good leadership in.
And and and what somebody tell them what to do and and now you have that track record of being able to fix things and and make it better serve the people are going to workforce right so much thanks so much coming on the Nevada Hortons as soon as we're done here.
