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How many of these finance committee meetings have you sat through in your many years as a club manager/General Manager/C.O.O.? The same topics the same discussions that you have listened to and explained, educated and suffered through with each changing year of new committee trainees mixed in with those that are finally getting it and are on the way out and rarely make the meetings unless there is a hot topic to discuss. Once again the month shows a variance from food cost and labor is over budget and sales are down so “how can this be?” The infamous “well we lose a little on each member that dines but make it up on volume” type conversations begin. The 200th time you have looked to your chairperson and nodded before you begin describing the difference in banquet/party business and day to day in 5 different rooms with 4 different menus and or buffets and how that mix of revenues has a huge impact on bottom line. Then that famous…”…….you mean the more we do in member al a carte the more we lose?.........” and the battle is on.
For years we battle and survey and scrutinize and worry over the forever losing food and beverage numbers. More to come on this ………
Then we get to golf course maintenance; in the same meeting. 25 percent over in the month and trending to over 100,000 + for the year (ten times the variance in food and beverage) and the comments are “great to see the emphasis on our number one asset! …………” “about time we got some workers detailing out the bunkers and edging cart paths…..” and usually in that same meeting a motion is made for another $30,000 piece of equipment that will further enhance the course (that of course was not in the budget and bumps for the 3rd year in a row the convection oven upgrade in the kitchen) for the benefit of the members.
It is at best a laughable but real world day-to-day philosophy that permeates our clubs and who is to blame?
Ok I am going to go out on a limb and hack some of you off but it is our own fault. WE the “General Managers” we the “C.O.O.’s” have kept this two worlds view alive and well for generations. Here is my point; years ago managers were the restaurant guys, the front of the club house experience, the wine experts, most came from that background or were chefs. Years went by and there was a new breed that actually came from college with degrees; most of them HRM which frankly continued to be “Highly Recognized Maitre de” Degrees in many cases. This is not just because memberships /boards saw it that way, WE bough into it and focused all our time and efforts into those areas and left golf, golf course and such to the “other guys”. Funny, over the years I have heard many a manager gripe about “there goes my kitchen whatever….” Or “that golf course gets everything and those golfers run the place………..” HELLO!!!!! It always amazed me then and it amazes me now that we continue to wallow in that world and really thing calling our selves GENERAL managers the club membership will know and understand……HA.
Here is the reality of it all in my humble now 30 + years in the business with my CCA marketing and golf first love mentality that has allowed me some success.
If we are going to change this paradigm and truly be GM’s we have to understand that Golf (I am speaking to country club folks) is why the club exists. The course and the golf operation is the sacred cow and it always will be and rightfully so. The mentality of boards and memberships are not going to one day wake up and say ….I don’t care what you lose in food and beverage just give me the best but you better not be one penny over in golf course maintenance, and oh by the way if golf revenue is down then your golf course budget is reduced by the same percentage. Try that one on in your next board/finance committee meeting! Truth is NO area of the club MAKES money !! Let me say that one more time (and for you that “make money” in food and beverage ..more power to you!) No where ..its all about Dues! This business is about two things in the final analysis ..REVENUES vs EXPENSES and the Initiation fees that they generate vs. debt and capital needs…..or better said…..How much DUES can you get to the bottom line and with that level of quality and service how many dollars in membership sales/ replacement does it generate. After taxes and debt (if any) how much is left for TRUE depreciation cost (that is the amount you really need to spend yearly to replace and maintain) not that crazy accounting number on your books that someone rigged years ago to make operations look better or worse depending on the then political climate for dues increases or assessment needs.
WE, all of us, need to see the big picture philosophy our members as a rule so clearly see in the golf course and golf operations and flow it over to the food and beverage world in our committee meetings and board meetings. NO I am not saying go nuts and nothing matters as far as costs etc but we are chasing out proverbial tails and letting committees and board get bogged down in the minutia of this area and at the same time turning the valves up on golf with no regard to any kind of relationship to revenue vs. cost. Want to shake up a board meeting when someone gets on food loss……bring up the fact that Golf is the biggest loser there is …..How? Take total golf course and golf shop operations and carts etc expenses and then subtract total golf revenue to the club and see what that number looks like compared to your f/b numbers. OH but that is why they join the club ..and I don’t argue the point …but in fact isn’t all of what we provide in services and amenities part of that same package of why they joined the club and stay? OH and do I dare start in on the % of capital dollars yearly, in five year plans etc to the golf course vs. food and beverage.
Make the course and the golf operation as important to your management of the club day to day as the membership/ board and committees make it. Get out of your comfort zone if it’s the f/b world and use your leadership and skill sets to be shoulder to shoulder with that part of the team like you are with the chef/controller and food and beverage staff. You know the name of every one of your servers and kitchen people I bet and half of you couldn’t line up the golf course crew and or name them and or know nearly what you do about the other crew; and it is that darn golf course getting all your kitchen/service money……
One of the popular sayings of today is “ it is what it is” …well I propose to you “ we cant expect to change things doing things the way we always have “ …….Get deeply in to the relationship between golf revenues and golf expenses. Know them like you do food cost and inventory levels and gratuity and house charge distribution. Stop allowing yourself to be held accountable for the losses in F.B and not hold up the same value system that is shown in golf. Stand firm in the fact that you provide great service and quality in all areas of the club and each of those have a variable cost that contribute to the overall image and lets face it “place in the market” which relates directly to the initiation fees that may be expected. Be as proud (for you and your membership) of the investment you make in food and beverage services as you /they are of what is invested in Golf !
If you think this is all hog wash….here is my final proof. Your doing budgets the whole staff and committee structure is involved, the board is all over you and the staff to fine tune. Surveys are out and your getting back the numbers…ok someone did better in food cost, we have to budget down, someone did better in banquet sales, lets fake it up some numbers and OH look everyone is up in golf course maintenance ….lets spend more then them and that will surely make it all better………oh to do that we need food cost at 32% now and labor cut 10% ..make it work!! Ever been asked to survey % of golf revenue to golf course expense by a committee or board? EVER?
I love this business and I love what we do; but we are part of the problem. Spin your head around and recognize the opportunity we have to embrace the philosophy they already have ……the trick is calling all of our kitchen equipment and serving trays etc ..golf course equipment!
Now, go re cost a menu or something really important!
That is my two cents worth about a pair a dimes!
Dave W. Stuckey, CCM, is general manager/COO at Royal Oaks Country Club in Dallas. You can reach him at dstuckey@roccdallas.com
EDITOR'S NOTE
This article first appeared in Master Club Advisors.
Alll references to committees and or budget #’s etc are representations of and not specific to any one person group or club experience …..what I mean to say is there are no innocent people to protect, its all a screwed up mess together, but I say it with tongue firmly placed in my cheek.
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