Annual Report 2012.pdf - Cherry
Annual Report 2012.pdf - Cherry
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 />
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