For the restaurant industry, it has officially come and gone and feels a little like the holidays. All the intensity builds up to the long-awaited day, and it’s over. We’re referring, of course, to the Formula 1 Las Vegas Grand Prix that took place on November 18.
While the buildup included some customer relation headaches and local business challenges, has officially come and gone, and apparently, for the restaurant industry the gamble paid off.
Who Won the F1 Race?
First, let’s address the winner: Oracle Red Bull’s Max Verstappen. This represented the 54th win in his Formula 1 career, which began in 2015 at the age of 17. One year later, he became the youngest driver to win a Formula One Grand Prix. Born in Belgium, Verstappen races under the Dutch flag.
What was the Economic Impact on Las Vegas?
The F1 weeklong event brought in approximately $1.2 billion in economic impact and drew an estimated 315,000 spectators who flooded restaurants and hotels. Crowded? Yes. Exciting? Absolutely! A few of the many celebrities who enjoyed the VIP guest experience included Brad Pitt, David Beckham, Rihanna, Leonardo DiCaprio, and Shaquille O’Neal.
According to Steve Hill, the CEO of the Las Vegas Convention and Visitors Authority (LVCVA), thanks to Formula 1, November 2023 has earned the honors of the best November on record regarding economic and fiscal impact. Business Insider reports that the economic boost will equal that of two Super Bowls. Ticket prices ranged from $500 standing-room-only to $5,000 premium hospitality, and much more. The average ticket price of $1,667 made the Las Vegas Grand Prix the most expensive F1 race in the world.
How Were Restaurants Impacted?
In the restaurant arena, some of the industry’s top chefs, including José Andrés, David Chang, Michael Mina, and Jean-Georges Vongerichten, created signature dishes at the trackside Bellagio Fountain Club. The all-inclusive three-day event included food, drinks, entertainment, and incredible views of the race for a mere $11,247 per person.
Hannah Elliott, a reporter for Bloomberg, spoke to local businesses, bartenders, and hotel managers during the four-day event. From what she heard and experienced, she concluded that the Grand Prix was a wild success.
There were, however, some restaurants that felt the adverse effects of the bustling scene. Fox5 reported on Randy Markin, the owner of Battista’s Hole in the Wall, who said his restaurant received a minimum of 100 cancellations a night as potential guests found it difficult to navigate through the city.
Is Las Vegas the New Entertainment and Sports Hot Spot?
The LVCVA also states that Las Vegas is now the “sports and entertainment capital of the world.” Hard to argue. It’s currently home to four impressive sports venues that have hosted NCAA tournament games and NFL Pro Bowls. They have four major league sports teams and six minor league teams, and their crowning glory, in addition to the Formula 1 race, is Super Bowl LVIII, scheduled for February 11, 2024, at Allegiant Stadium. This marks the first time they welcome the Super Bowl.
This technology-advanced stadium is home to the Las Vegas Raiders and is expected to generate $620 million annually. An LVCVA analysis also revealed that while spending in gaming, shopping, and rooms was down in 2022 compared to 2019, entertainment saw the biggest increase, exceeding 2019 by over 4%.
On the heartfelt side, F1 created the Las Vegas Grand Prix Foundation to help local charity groups. Their Million Meals Project will provide at least 1 million meals to families, communities, and students in Southern Nevada.
Most Importantly, When Is F1 Returning to Las Vegas?
Formula 1 returns to the strip from November 21 – 23, 2024.
EMERGING and F1 Arcade
At Emerging Concepts, we’re excited to be working with Adam Breeden of Kindred Concepts Limited, who gained authorization from Formula One World Championship Limited to create the F1 Arcade. This ambitious project gives guests the Formula 1 experience with bespoke full-motion racing simulators and incredible global food and craft cocktail offerings. Huge TV screens also provide the ideal setting for watching the Grand Prix races.
They currently have locations in London and Birmingham, UK. In 2024, they’ll be heading across the pond, with their first openings scheduled for Boston and Washington, DC. Emerging Concepts’ data scientists and real estate experts use strategic analysis to support F1 Arcade in determining the optimum growth strategy, exploring potential sites across the nation, negotiating with developers and landlords, and effectively maximizing returns while minimizing risk.
To learn more about Emerging Concepts or to schedule a consultation, contact EMERGING today.