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Annual Report 2012.pdf - Cherry

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<strong>Cherry</strong> has been successful in its efforts to start gaming in<br />

many new restaurants, but at the same time has been forced to<br />

close other venues because operations were unprofitable.<br />

“In total we have seen an increase in the number of<br />

venues, thanks to our proactive efforts. We are maintaining<br />

and increasing turnover on a market that overall continues to<br />

shrink” says Ulf Bergström, Business Area Manager at <strong>Cherry</strong><br />

Casino AB.<br />

INCREASED GAMING PER TABLE<br />

At the venues where <strong>Cherry</strong> is still open, customers are playing<br />

more than ever before, largely thanks to a series of implemented<br />

measures.<br />

“We have raised the lowest stake level at most venues to<br />

SEK 40 or 50. We have also continued to work on refining<br />

the training of our personnel, so that there is a higher level<br />

of competence than ever before.”<br />

NEW ACQUISITIONS INCREASE TURNOVER<br />

During the year <strong>Cherry</strong> acquired three competitors –<br />

Göteborgs Casino, Snättringe Casino and City Casino – and<br />

thereby took over operations at several well-known pubs and<br />

restaurants in Gothenburg and Stockholm.<br />

BETTER CONTROL WITH NEW SYSTEM<br />

The launch of the new cash terminals, which in addition to<br />

card payment facilities offer full integration with the new<br />

statistics and business system, is now ready.<br />

“The new system works excellently. All data and statistics<br />

go directly into the system.”<br />

<strong>Cherry</strong> now has much better statistics and opportunities<br />

for follow-up, and can optimise staffing and opening hours<br />

with better control of statistics on individuals and tables. The<br />

system permits full control of the flow of markers and money<br />

over time, and provides much faster reporting directly<br />

from the venues.<br />

“Legislation hasn’t kept up”<br />

Gustaf Hoffsted (Conservative) is a member of the Swedish Parliament in the Standing<br />

Committee on Cultural Affairs. He explains his standpoint for raising the stake levels.<br />

Why is it important to implement<br />

this motion?<br />

“Today’s gaming legislation concerning<br />

Restaurant Casino from 1995 has not<br />

kept up with the general cost trends. In<br />

practice the maximum stake with a SEK<br />

50 chip has remained unchanged for 18<br />

years. Restaurant Casino has been de-<br />

clining for many years, and if we don’t<br />

introduce a certain adjustment of the<br />

stakes the survival of the entire industry<br />

will be at risk. This risks job opportunities.<br />

I also think that Restaurant Casino is a<br />

nice part of the integrated entertainment<br />

on offer in our restaurants.<br />

Which social consequences can an<br />

increase involve?<br />

“Above all it should be possible to<br />

secure the 1 200 jobs that exist today,<br />

while at the same time it should be<br />

possible to create an additional 1 000 job<br />

opportunities by increasing the stakes. I<br />

believe that restaurant casino can continue<br />

to maintain its low level of problematic<br />

gaming, even after a certain increase in<br />

the stakes. In comparison with the alternatives<br />

offered at Casino Cosmopol or<br />

foreign based gaming on the Internet, the<br />

stake levels are very low and the problems<br />

of addiction to gaming limited.<br />

FURTHER IMPROVEMENTS<br />

<strong>Cherry</strong> continues to make small changes within the strict<br />

framework of laws and restrictions surrounding the industry.<br />

“We try to get better in all areas, so that we can give our<br />

guests a few moments of fun and excitement,” promises Ulf<br />

Bergström, who is proud to have taken part in building up<br />

Sweden’s largest restaurant casino.<br />

EAGERLY AWAITED MOTION FOR RAISING THE STAKES<br />

The reason for the shrinking Restaurant Casino market<br />

is the legal maximum limit for stakes, which has not been<br />

raised in line with the expenses of gaming operators. The<br />

maximum stake today is about SEK 73, but in practice SEK<br />

50 – which it has been now for almost 20 years. The current<br />

legislation is from 1995 and it has quite simply not kept<br />

up with the times. This has meant a constant decline and<br />

halving of the industry since year 2000.<br />

But after <strong>Cherry</strong> has spent a long time working to inform<br />

politicians and decision-makers, a member of the Swedish<br />

Parliament has finally written a motion to increase the<br />

stakes. Jan R Andersson (Conservative) proposes raising the<br />

stakes from today’s SEK 70 to 200.<br />

“The next step is for the motion to be considered by the<br />

Ministry of Culture in the spring. At the very best we could<br />

see a change in the law by the end of the year, but there is a<br />

big risk that it will take longer,” adds Ulf Bergström.<br />

The proposed raising of the stakes is a pure case of survival<br />

for <strong>Cherry</strong>, because wage costs and other costs are rising at<br />

a higher rate than earnings.<br />

“With the raised levels of stakes we would be able to open<br />

more venues and keep them open for more days in the week.<br />

This is estimated to create up to 1 000 new job opportunities,<br />

primarily openings for young unemployed persons.<br />

If the stakes are not raised this will have consequences for<br />

our business operations and job opportunities will be lost<br />

over time.<br />

Which groups will benefit most from the<br />

newly created jobs?<br />

“The industry employs today mainly<br />

young people aged between 18–25 in all<br />

parts of the country. Newly created jobs<br />

will in all likelihood be “openings” that<br />

help us to keep unemployment down<br />

among young people, while also providing<br />

a valuable introduction to working<br />

life.<br />

cherry 50 years |<br />

15

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