Lake Tahoe Hard Rock on shaky ground
Lake Tahoe Hard Rock has had a rough beginning. Photo/Kathryn Reed
By Kathryn Reed
Current and former employees of Lake Tahoe Hard Rock believe the hotel-casino is destined for failure because of the management company running the place.
“It is very disappointing to see the history and potential of this property being squandered by bullies, liars and thieves with no long term commitment to or concern for our beautiful Lake Tahoe Basin. Employees who speak up or challenge the behaviors and tactics of this group are being picked off one by one and replaced with Las Vegas imports that will keep their mouths shut,” an ex-worker told Lake Tahoe News.
Brothers Jon and David Park, who own the Stateline property, hired Las Vegas based Warner Hospitality to run the hotel-casino. Warner does the same for the Hard Rock in Las Vegas, though the company didn’t open that property, and in Sioux City, Iowa, as well as other hotel-casino entities. The Las Vegas Hard Rock that Warner manages has been losing money for years. According to Mergers & Acquisitions, Bref HR, which owns that Hard Rock, has struggled the last three years with substantial losses – $103 million for the last fiscal year, $105.5 million in 2014 and about $116 million in 2013.
Jody Lake, Warner’s chief operating officer, is the person who employees said makes most of the decisions regarding the Stateline property. He is out of town and deferred comment to Chris Fiumara, vice president and general manager of the Lake Tahoe property. Fiumara is married to Brooke Fiumara, vice president of marketing for Warner. Some employees believe having a local GM married to an executive working for the management firm is compounding the problem.
Questions to Fiumara were limited and only done by email.
Lake Tahoe News spoke to about a dozen workers – some of whom are still working at the Hard Rock, some who quit and others who were fired. All spoke off the record for fear of not retaining their job or not being able to get a new one. Some were with the Hard Rock before it opened, others since nearly day one and others were hired more recently. (The property opened Jan. 28 after a $60 million makeover of what was the Horizon.) All had a similar story to tell of corners being cut, staff shortages, a tyrannical-like approach to dealing with employees, and guests being unhappy. (Hard Rock has a 2-star rating on Yelp and 2½ on TripAdvisor).
Morale is an issue for employees throughout the property. Photo/Kathryn Reed
Staffing issues
There are about 500 people working for the Hard Rock. Employees say a property this size – 539 rooms, three restaurants and gaming – should have closer to 700 workers. (Housekeeping is contracted out.)
Turnover of the front desk staff is at 180 percent and about 150 percent with upper management. Overall turnover is closer to 45 percent. It had been forecasted to be 15 to 18 percent.
“The current turnover at the Hard Rock Hotel & Casino Lake Tahoe is not out of the ordinary, particularly with an opening. People come and go and that’s just part of the normal course of business,” Fiumara, the general manager, told Lake Tahoe News. “Our team members are our biggest asset and we believe our team members are engaged, friendly and provide the guest experience the Hard Rock brand is famous for.”
To operate room service efficiently there should be a supervisor and 16 employees. Four is the maximum the hotel has operated with. The restaurants should have had 56 employees; they had 39.
At one point there was a hiring freeze.
There are eight directors on site who work for the Hard Rock, with two of those slots currently vacant.
About a dozen key people left earlier this month. It came to light that Warner had placed a blind ad for many of their positions and then denied doing so when confronted. Some left on their own, others were shown the door.
Performance reviews were never done. Many were told their position was eliminated and then something similar to it was posted.
Some got a severance, others didn’t. No compete contracts were issued after hiring, with stipulations of not going to work for a competitor within a 100-mile radius. This means having to move if they want to stay in the gaming industry. Some of these workers are longtime locals, some moved here for the job. Many have families.
“Word is out and word travels fast so now people don’t want to go there to spend money. Applications have dried up because no one wants to work there because they have heard working conditions are horrible,” an ex-employee said.
Reviews of the various restaurants are inconsistent. Photo/Kathryn Reed
Questioning the operations
Workers said Warner doesn’t understand the Tahoe market, the guests or the workers.
“They wanted to run it lean and mean and it doesn’t work,” one person said.
Money or the lack of it was the reason employees were given for the staffing shortages and non-existent training.
“The budgets and forecasts Warner came up with were totally unrealistic. That’s why there were so many cutbacks. People were doing three and four jobs,” someone said.
Each worker mentioned the long hours – 18 on many days, no days off – and being reprimanded if two days off in a row were taken.
“It was very challenging due to the Warner group. At times there was hostility in regards to how they treated team members on how to get things done. There was a lack of leadership and very much a lack of communication,” one man said.
Warner has someone who oversees each division. These people are based in Vegas, coming to Tahoe randomly. This has been a challenge for local workers when it comes to getting the powers that be to understand the issues. It has also created problems because one person comes to town, makes a decision, and then that decision is overruled when someone else shows up.
The lack of a cohesive voice, direction and any type of real leadership is exposing major fissures in the operation.
Policy and procedure protocols didn’t exist at the opening. There was no framework for each department. All of this has been developed haphazardly since the opening. It was chaotic from the get-go, with workers not being trained ahead of time.
Employees didn’t understand the rush to open. LTN was on site opening night, having witnessed displays still being put together and the place not ready for the public just hours before the doors opened.
“The original opening date was set for December and was pushed back to the Jan. 28 opening date. We felt it was important to open during the winter season; we opened to positive feedback both on the property and guest service,” Fiumara said.
For many workers, things have not improved in the last seven months.
Pool parties were to set the Hard Rock apart from other Stateline casinos; those plans went down the drain. Photo/Kathryn Reed
Issues at the property
“This group has cut corners in every area, ignoring building codes, health regulations, the health and safety of its customers and employees,” one person said of Warner Hospitality.
In the back tower, where there are 220 rooms, non-permitted electrical work was reportedly done. This, several employees said, was to deal with the lights above the vanity.
“The Warner group signed off on the vanities and didn’t wire them properly,” according to a worker.
The heating and air conditioning systems are so old that not all rooms allow guests to control the temperature. Ice machines don’t exist in the Heavenly Tower even though there are signs saying they are available. This is a complaint noted by reviewers online.
Asbestos removal was occurring after the property opened.
The old phone system was not replaced. This has resulted in issues in rooms with guests unable to communicate with staff. While wireless Internet was put in, there are spots on the property that are black holes.
The pool has been closed for the season by Nevada officials because of a leak that some employees said was a known problem last summer.
JoAnn Kittrell with the Department of Conservation and Natural Resources said new leaks keep being discovered.
“They are trying to determine what their course of action will be, whether they need a total new pipe or is it time to redesign, reengineer, replace the pool,” Kittrell told Lake Tahoe News.
Today it’s empty, as is the hot tub. Cabanas sit along the side. But the much hyped pool parties aren’t able to go off as planned. These types of parties are infamous in Las Vegas.
“I don’t think they understand Tahoe. They are trying to force Tahoe to be Vegas,” a former employee said.
Douglas County sheriff’s deputies showed up at the property during July’s celebrity golf tournament because of the parties the Hard Rock was having out front.
“Go-go dancers were hired. They were involved in three-way kisses on the patio; there were lap dances on the patio. They were taking tips like strippers,” an employee said. He said restaurant patrons were appalled and that deputies shut down the party.
Someone else said, “People come to Tahoe for many reasons. The main reason is the outdoor recreation part of it. Everything else we offer like restaurants and gaming is secondary. Gaming is more like an amenity to this destination, whereas with Vegas, why people go is gaming. They are not putting equal focus on other amenities that are just as important. You can’t base your budget solely on a gaming framework.”
David and Jon Park, owners of the Lake Tahoe Hard Rock, on opening day — Jan. 28. Photo/Denise Haerr
The Park brothers
Those who know the Park brothers had only good things to say about them, and many feel sorry for the two.
“I can’t stress enough how much the Parks really do care. They are great people. Warner is destroying the company and milking the Parks for everything they can,” a worker said.
Neither of the brothers returned multiple phone calls.
Reports are the contract between the Parks and Warner is for seven years. The details of it are not public so it is not known what type of performance measures Warner must meet or what it would take for the Parks to get out of the contract if they so desired.
Those who know the Parks say the brothers are trying to get out of the contract.
The Parks already have at least one legal issue to deal with – payment to the contractor. Mediation this month did not resolve the dispute.
Warner managed the construction project.
“The Parks are upstanding citizens who were dealt a bad hand. They don’t know the hospitality business,” a woman said. “They put their hands and faith with people who sold them a vision and who are certainly not coming through on that vision.”
Kae, Good article about the Hard Rock. I hope they can make it work and make it into a sucsess. My neighbor works there and I don’t want to see her lose her job!
Good neighbors are a blessing as are good jobs that provide a living wage with good management and proper training of their employees.
Lets hope it all works out. Old (hopeful) Long Skiis.
I have not been in the place since it re-opened as the Hard Rock. Been meaning to, and I assumed the wife and I would do that right after Labor Day, when things quiet down here, some anyway. BTW…I’m a 40+ year resident.
Now, I think I will stay away. Interesting to me that this slamming story came out this morning, when only last night I had a conversation with my neighbor across the street. Hee had quit, and filled me in a bit on what has been going on with Hard Rock. Too bad. Remains to be seen what the Park Brothers will do about conditions there. I am going to print the article for my neighbor.
I wonder if those shorter term residents here, reading this story, know that any unpleasant news about the casinos has mostly been off-limits for publication by the Tribune, for as long as I have lived here.
btw, I have nothing against using my real name for my messages.
Thanks, Kae.
Not to be a negative nelly but this happens all the time in this town. Out of towners come in with their money and ideas and are “going to change things up” . Then they cut corners on what is important. They just don’t understand the ebb and flow of the people and seasons no matter how much the local people tell them.
Sad chapter for the South Shore, the employees and their families. This town needed a win, not a black eye.
It’s sad to hear about this. I remember this same thing happening when Caesars Tahoe took over from Park Tahoe many years ago. Most of the management came from Las Vegas where they had labor unions to deal with and when they came here they could do anything they wanted without the influence of union contracts and thus treated employees terribly. It took a while for the company to realize that would not work here and kicked the Vegas crowd out and then things got much better. I hope the Hard Rock comes to there senses sooner rather than later and makes the necessary changes to treat the employees as team players and thus make this property a local success.
These practices are not exclusive to Hard Rock. These very issues have plagued all the casinos. The beginning of the end came when private owners, Bill Harrah and Harvey Gross sold to corporations.
Amazing article. Makes me incredibly sad. I pray this can turn around.
Good article, Kae. Thanks!
Won’t be taking my money there.
This isnt very accurate…. Some of the things you listed happens in all casinos around the world. Lets be real here.
To those threatening not to spend any money at the Hard Rock that does nothing more than hurt the employees more and threatens more jobs being lost. Take the time and complain about the conditions as well as how the property is managed to the powers that be. That will help the employees more in the long run. When the right people get the message regarding the way the property is being run as well as the ongoing employee discontent,
Hopefully then the appropriate changes will be made. Any new casino or large business has growing pains and also a large employee turn over in the early months of opening. It helps no one if the property fails again and has to close it’s doors for a second time. Remember If the Hard Rock fails that could happen again.
I hate corporate scum. Every time I hear the catch phrases “team member or mission statement” I want to puke.
Turnover numbers like these are a management problem. Parks brothers need to get a handle on their product. It my be too late!
Kinda like the hotel is “Between a Rock and a Hard Place.”
Why did the Park’s go with a management company losing $300,000.00 a day at their Vegas hotel?
There is something confusing in the referenced SNC lawsuit. Apparently, according to the article, Warner managed the construction project, yet Warner companies don’t seem to be included in the suite to recover the contractors costs.
What is up with that?
The Park Brothers obviously were born with the proverbial silver spoons in their mouths, but that does not mean they are good business people.
It would seem that we are about to find out pretty soon if they were taken advantage of due to their
inexperience in the business, or if they are responsible for part of the problem.
Personally, I remain amazed that SNC (a large and experienced construction company)let themselves get so exposed financially without seeking some guarantees from the builders and or construction managers.
I thought they were smarter than that.
Hello:
I have alluded to the ongoing problems (Hard Rock is but a part of Tahoe), trying not to be too specific in articles I wrote. . .& it now boils down to this: the difference in Tahoe’s success can be attributed to the lack of entrepreneurial spirit – the corporate take-over has not really worked with Harvey’s, nor did it work for Harrah’s. . .
Caesar’s (now Mont Bleu, both also following a Park venture) was the first Las Vegas intro, which began a cultural change that some think should go on, not really knowing what the difference might be if they don’t. . . but should. . .
Your ‘front-line’ people are all you’ve really got, as there will not be much to measure on any ‘bottom-line’ if your ‘top-line’ thinking is askew, as in worrying about money first; the clientele is providing the money, not the corporate egos. . .& those at the top apparently need a ‘101’ Primer on that: merely cutting corners doesn’t cut it.
After 10 years with Bill Harrah (concluding in P.R. w/both Mark Curtis & Jim Smith), it was his success that later managements can not emulate. . .as they now focus more on their billion-dollar ‘Rewards’ program than they do on the customer standing in front of them. . .
Hard Rock relies on the reputation they don’t really have, and probably don’t know how to get…given this report. . .
When I first heard about a Hardrock opening in the South Shore, I was excited. After watching things unravel over the last year, I’m praying they get it together. (For the sake of the town)
This article sounds more like a hatchet job written by someone that has never started or rejuvenated a business. Yes, HARD ROCK & the Parks have made some mistakes. To call anyone there ” bullies, liars, and thieves” is way off base. Consider the source.
Meanwhile, how many jobs have been created and customer traffic rejuvenated for South Lake Tahoe because of the entreprenurial effort of all involved?
I think it is fine reporting, obviously a very tough article to write as some of the sources are current employees that are ferarful for their jobs. Many people have been let go already or forced to quit because of management tactics. People and families have been affected in a very negative way.The truth needed to be put out there and thankfully someone like Lake Tahoe News had the guts to do it!
Pat, how do you know that these statements are way off base? Do you work at the Hard Rock? It is one thing to bring people in and rejuvenate the area but if you treat the people working for you like crap then this is what happens. It is also one thing to make a few mistakes but there seems to be way too many mistakes here.
Hottest cocktails in town, good vibe, good customer service from what I’ve had… better music than Caesars and montbleu. What’s the problem? Just because somebody wants a story and wants to publicize internal problems of a new property doesn’t mean the bartenders, dealers, cocktails, and slots personnel aren’t going to be giving you good service. Even if their management sucks right now they want to make money. Let’s not shoot a property in the foot because employees complain about management at every job.
this company sucks for employees I have seen very little of my husband due to his having to work extra shifts because of lack of help on his shift. They are now hiring idiots to fill some of the shifts but no one that is really qualified for the positions they are hired for. Some are even Making drinks behind the bar while on shift, flirting with female guest and employees and ignoring their shift duties. The supervisors are just as ignorant. They see this stuff but do nothing about it. Frustrating for all. Suggestion:Don’t work there
AROD, please correct me if I am wrong but I believe Harrah’s and Harvey’s were sold by their respective estates after they passed away.
Yes Dave you are right on when those properties were sold
“Three things happen naturally in business…confusion, friction, and underperformance. Everything else takes leadership”…
The information about the “Warner Team” seems to be the reason that Hard Rock is having these issues. Now that this article is out our neighbors will really suffer from lack of patronage and lack of applications for jobs to fill paying positions.
Seems like a disgruntled ex-employee rambling off rumors they have heard around the water cooler. Those people are so upset about losing there jobs that they don’t realize they are hurting there fellow neighbors by jeopardizing there jobs. This is how it is for most businesses in the Tahoe area even ones that have been her 30 years (where did those employees that left come from? Resorts? Small Local business? Wherever it was if they have family’s and are local they had to have come from somewhere with comparable conditions.) I have worked for multiple mountains and ski resorts… it sucks.
That pool has been here since before most of us were born, of course it will have issues.
P.s. 3-way kiss stopped by security? (is that news?) I have seen worse at Mont Blu and others. Stop crying and find another “better” job. Conditions will be the same and if they are not then that new place you are at will be sold or closed in 1-3 years.
GET OUT WARNER HOSPITALITY YOU ARE NOT WELCOME! AND TAKE YOUR GM WITH YOU! HORIZON WAS AWESOME! WITH CHEAP BEERS AND A PLACE TO ESCAPE THE CROWDS.
It’s great to say don’t work here, but do you really want 500 people out of a job once summer is over? People are going to have to come together and figure this thing out for the sake of the employees and what it can bring to the community. There are lots of good people at the Hard Rock who are dedicated to seeing it through and they deserve a chance. It would be sad to see it turn back into what Horizon was before it closed.
I know contractors in Tahoe and they very certainly underbid and underestimated this project and demanded more money to get it done before opening. Now no contractors will touch the place and their shoddy work can’t be repaired. Guests and employees suffer for it everyday. It was the contractors job to stay on time and on budget, but everyone knows it never costs what they say it will, and is never done in the time promised. It’s Warner’s fault for not anticipating this fact, but compromises (and money) fix issues, not blame.
Locals, saying that you won’t go to the Hard Rock will just make it worse for the people who are there trying to make a living here. Support your friends and neighbors by showing up, provide good feedback (tipping is great feedback) and making helpful suggestions on where Hard Rock can improve. Slamming a business you’ve never been to based on an article isn’t fair.
Warner is used to losing money, apparently, and the Parks were probably sold a vision that is definitely not coming to fruition, but there are other options. There’s a lot of potential for this property and maybe leasing the movie theaters to an outside company (hello, Alamo Drafthouse concept would make a great addition to Tahoe) and creating some other things to draw locals and Californians to the property will help change the mood. If everyone was making good money and management stuck to the promise of making this place different than all the other corporate casinos in Tahoe all the animosity would fall away and they’d have the opportunity to find the right people to lead.
It might be time to go back to the drawing table regarding the original vision, and rethink it. Can’t the pool be taken over by an outside company? Renovate it, cover that bad boy, turn it into a club and open it all year! Does Tahoe really need a giant indoor concert venue? Is Vinyl a reasonable draw for locals and visitors (it’s rarely full)? It’s difficult to see all of this potential just left by the way side. I hope the Park brothers get out of the contract, find someone to do some market research and a partner who can make the property into the gem it could be. I’m holding out hope.
As a former employee of BOTH columbia sussesex llc(horizon) and park tahoe llc (hard rock) I could not agree more with this article, We had our hands forced into quitting just a few months before they were to open, I was in the engineering department for just under two years with the Horizon under a Chief engineer that did nothing but try to save the company money and address multiple issues for both the building and the guests.
He was fought every step of the way by individuals who had no business being in the positions as “management” personnel. When John and David park first took over the horizon and the building closed I was one of six engineers that was given the “pleasure” of keeping their job, however so was the GM of the horizon.
Instead of addressing the issues of concern with both the remodel and deficiency lists, we were instructed to gather all Irons, Ironing boards, floor lamps, alarm clocks,bedding, and what we referred to as “piss” pillows…. most of the pillows in the 539 room establishment were so old they were stained and discolored yet we were too stack and count them?!?!?!? at the end they were all discarded… a complete and udder waste of time on our part due to incompetant upper management pertrsonnel… about three weeks into working for warner our cheif engineer was let go due to conflict of interest, i too walked voluntarily for fear of safety issues I myself saw coming….
I truly feel sorry for the park brothers they were deffinatly dealt a bad hand, they themselves in the little bit of time i knew them had the worker mantality, crawling, and getting dirty just like the rest of us. they are great people and one of the older families in this area, i sure hope they are able to rid them selves of such unprofessional people, and get the building back to its old time time reputation!
That is so sad!! We love the Oyster Bar over there. Why corporations think they can come in and cut corners and treat their employees like they are just a dime a dozen!! I was treated like that in the ’90’s working at the front desk at Harveys. I told them to stick it where the sun don’t shine! They said “you can’t walk out’! I said ” watch me”! So my friend and I walked! Oh well, another one to watch sink…maybe the property is hexed!
Kathy, I’ve heard good reports about The Oyster Bar at Hard Rock. Good food!
Take care and good luck Hard Rock!
OLS
I’d like to hear about some really well run, successful businesses on the South Shore where people aren’t so unhappy with their employer and with the management. Situations where employees feel so bad about where they work is demoralizing for the workers and that atmosphere can’t bring an employer the best financial return possible. You don’t get the best out of people by treating them badly, but I don’t think most corporate executives recognize that. I think that good management establishes relevant rules appropriately applied and fairly enforced, they treat their employees with respect, thank and value them for the good job they do, and back them up when needed. There will always be some clunkers who will never be happy but those people eventually get weeded out and the good ones stay.
Anyone else have suggestions they’d like to pass on to management?
Spouse – 4-mer-usmc
I’ve never been to the Hard Rock so I can’t speak of anything in this story. The people mentioned mostly come from Station casinos, so it’s not surprising to hear that they run the place the way they do (if its true).
Nothing like a poorly written and biased attempt at journalism to brighten the day. I would have actually entertained it longer if it weren’t for the obvious biased tone and lack of factual details. I’m sure those who depend on Hard Rock to feed their families also appreciate your lame attempt to discourage them further. Good thing there are only a few people who would even consider reading beyond the first paragraph. Perhaps you should spend more time learning the basics of building a story for the purpose of engaging readers rather than chase them away with your publications obvious biased stance. It should also be noted that anybody who expected the project to be 100% success during it’s inaugural year has clearly never worked in this industry.
It is not about being 100% successful as most businesses will struggle and have growing pains during the first year.
This is about treating employees with dignity and respect!!!