Sometimes the introduction of a potentially successful new location could disrupt the status quo and have a negative effect on local businesses. This notion could be confirmed by the Carousel in Peterborough, a restaurant with a half-century history of operation that will close for good this summer.
The reason for this is field cannibalization triggered by the introduction of Shorelines Casino Peterborough. When a new player enters the game, there are always repercussions to existing participants.
Last October was a special one for the city, as it saw the official launch of a project that was expected to have a positive impact on the community. Projections such as reviving of the downtown area of Peterborough and the introduction of thousands of tourists and casino patrons were voiced prior to its first day of operation.
New Casino Brought 230-Seat Restaurant
The CA$49-million project launched operation in October 2018, but months before that Great Canadian Gaming Corporation touted its impressive dining offerings. The new complex features a buffet restaurant with some 230 seats, in addition to a la carte restaurant venue with 40 seats available.
For a city such as Peterborough, this is a considerable capacity that ended up worrying local businesses. Only weeks after the official launch local restaurateurs reported a drop in their revenue, as many locals were eager to try the new dining location and see with their own eyes everything there is up for grabs.
Warren Hennessey, the owner of Hendows Fine Food on Townsend St. reported a 50-percent drop. The last days of November 2018 saw Carousel owner George Spiridis report that the new dining location adjacent to the casino venue offers cheaper dishes with premium quality and the slot machines add up to the appealing nature of the venue. Prime rib and lobster is offered there for some CA$19.99, making it impossible for the Carousel to keep up with the rival.
Regular Casino Revenue Allocations Boost Community
April 21 saw the official announcement that the 50-year-old restaurant is going to close for good on June 2, 2019. Locals that have grown up in Peterborough, as well as everyone fond of this place, had the chance to attend their last Easter brunch at the Carousel this Sunday. The restaurant management has not given a reason for this closure, but previous reports highlight the impact of Shorelines Casino Peterborough on its performance.
In the meantime, there are restaurant managers that are not worried about their future operation. Publican House Brew Pub’s Katie Watt stated that she was more concerned by a potential kitchen staff loss, as the new dining locations at Shorelines Casino also needed individuals to join the staff. As it turned out this was not the main issue in this particular situation.
The casino venue has been able to support city coffers with its revenue sharing agreement. The first allocation equated to CA$705,606 covering the first three months of operation. Projections prior to the official launch were that the new location would be able to offer Peterborough some CA$4 million or more on an annual basis. This first allocation is going to fund various beautification projects across the community and improve people’s lives.