The Buffet Is a Bargain With a Business Purpose
A cheap lobster buffet can make sense even when lobster is expensive because the casino is not trying to earn its entire return from the food on one plate. The meal is part of a larger offer: it can draw people into the property, keep them there longer, and give them another reason to choose that casino over a rival.
That makes the buffet a form of loss leader—a product priced partly to attract customers, not just to maximize its own profit. Some diners may gamble, book a room, see a show, or spend money elsewhere; others may not. The buffet’s value to the casino comes from the overall chance of additional business, not a guarantee that every guest will spend beyond the meal.
“Unlimited” Has an Average Cost
The price is fixed, but the restaurant’s food cost is not the cost of supplying an infinite amount to every person. The casino estimates what a guest is likely to eat on average, then prices the buffet around that expected demand, along with labor, rent, and other expenses. A few diners who eat a lot can be offset by many who eat less.
The restaurant also has to manage waste and keep food flowing safely. That means replenishing dishes in batches and adjusting how much is prepared as demand changes. Those practices can limit avoidable costs without changing the basic promise that guests may return for more.
The Deal Works Only If It Brings Enough Value
A low price is not automatically profitable. If the buffet attracts too many high-cost diners without generating enough business elsewhere, the casino can lose money on the offer. Operators therefore weigh the meal’s direct costs against its promotional value and may change prices, menus, or availability as those calculations shift.
The striking part is that the lobster is not necessarily the casino’s main bet. The real wager is that a memorable meal will make the whole property more attractive—and that the added business will be worth more than the discount.
