Allen said he wanted to show his appreciation, and he is betting there will be a significant return on the investment with co-workers performing at a top level to give guests a memorable experience.
But, Allen added, he's also concerned about skyrocketing inflation and its impact on employees."We have really changed the lifestyle and the standard of living of thousands of people," he said. Inflation is having an impact on the company, resulting in some softening in July, according to Allen. Rising rates and pressure on Americans' savings could put pressure on Hard Rock for the second half of 2022 and the first two quarters of 2023, he said.
The company is already seeing pressure from currency concerns, as the strong dollar is making it more expensive for European tourists to visit the U.S., he said. Russia's ongoing invasion of Ukraine – which has pushed energy and other cost-of-living costs higher in Europe – is also hurting the company's cafes in prime, gateway cities such as Barceolna, Athens and London, Allen said. Tourism is down 40% in some cases, he said.