briefs could there be an increase in food & beverage sales as a result of the tax reform? By Frank Lucas
The last major tax reform before the Tax Cuts and Jobs Act of 2017 was in 1986. A lot has changed in 30 years. In 1986, Ronald Reagan was president, the average household income was roughly $25,000 a year, and the World Wide Web was about five years away from being invented… so it was certainly time for a major update. The tax reform updated and changed almost every area of the tax code, which included corporations, pass-through entities, exempt entities, trusts, and individuals. Some of those changes directly impacted private clubs. For instance, if you are an exempt private club you might be interested in seeing how the IRS treats the establishment of IRS Code Section 512(a)(6), which says you have to compute tax on “each unrelated trade or business”. Does this mean that exempt private clubs now have to separate out all nonmember activity and calculate net income from food & beverage separate from golf as well as other non-member activities? As of now, there is no clear guidance that says private clubs have to do anything differently, however, as soon as the IRS issues regulations on this code section we might see some sweeping changes on how to calculate tax in exempt clubs. In addition to the changes that directly impact private clubs, there are some changes that could indirectly impact private
clubs by changing the use of certain amenities. One of those indirect changes relates to the revision of meals and entertainment. Prior to the tax reform, individuals could deduct 50 percent of expenses related to qualified meals and entertainment. Entertainment includes activities such as golf and sporting events. The Tax Cuts and Jobs Act retains the 50 percent meals deduction, but has eliminated the 50 percent deduction for entertainment. What does this mean? If you are a business owner or salesman and you were given the choice to either have lunch at the club and receive a 50 percent deduction or play golf and receive no deduction, what would you choose? It will be interesting to see how this revision impacts private clubs over the next few years. BRB
table of contents club culture A Health Check Up for Your Club - p3 Tips to Keep Your Staff Looking Sharp - p11 Roadblocks - p13 food & beverage F&B 101 for Board Members - p7 Driving Member Retention - p9 Making the Most of Your F&B Department - p13 governance/board That Won’t Work Here! We’re Different! - p5 Traits of Excellent Board Members - p11 marketing 5 F&B Marketing Trends for Clubs - p7 Professional Approach to Clubhouse Décor - p15 millennials F&B Programming for Millennials - p15 president’s desk Happy Staff Happy Members - p3 Setting the Club Up for Success - p9
briefs
MAY/JUNE 2018 VOLUME 3 | ISSU E 3
boardroom briefs is complimentary to boardroom magazine subscribers. This newsletter offers content that goes beyond the buzz, by surfacing and summarizing important industry information. Each issue will offer practical insights from industry experts with a focus on fit for boards, board presidents and paid management.
John g. fornaro / Publisher dee kaplan / Advertising
Heather arias de cordoba / Editor dave White / Consulting
If you have a story idea, please contact heather@boardroommag.com or call (949) 365-6966. For more information please visit www.BoardRoomMagazine.com.
contributing Writers and industry resources Peter Cafaro / director of marketing, Judd Brown Designs / "PCafaro@jbd.cc Michael Crandal, CNG / www.linkedin.com/in/michaelcrandal Bennett DeLozier / manager, Global Golf Advisors / bdelozier@globalgolfadvisors.com Henry DeLozier / golf management consultant / hdelozier@globalgolfadvisors.com Bonnie J. Knutson Ph.D. / professor, The School of Hospitality Business, MSU / drbonnie@msu.edu Richard Lareau / director of dining & club operations, McMahon Group / fvain@mcmahongroup.com Frank Lucas, CPA / Tax Senior Manager, RSM US / Frank.Lucas@rsmus.com Jerry McCoy / principal, Clubwise Consulting / CMAAMCM@msn.com Mike Phelps / principal/co-founder, Pipeline Marketing / mike@pipeline.agency Rick Snellinger / president/CEO, Chambers / rsnellinger@chambersusa.com Gordon Welch / president, APCD / gordon@apcd.com Dave White / editor, BoardRoom magazine / whitepks@mac.com High End Uniforms / www.highenduniforms.com
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a Health check up for your club By Bonnie J. Knutson, PhD.
A wonderful professor in my undergraduate days used to say that communication is shared meaning. Language is supposed to clarify meaning so that we are all on the same page, but it doesn’t always work that way. Take, for example, how brand has changed over time. The question is, then, what does brand mean today and what does that mean for your club? If we are to understand the relationship between clubs and today’s branding, we need to remember the admonishment of my college professor and make sure we are all on the same page when it comes to defining the term. To really grasp what your club brand means today, we have to first understand what it is not. It isn’t your logo, name, marketing, advertising, or strategy. It is, however, “the sum of all perceptions about [your club]… built through experiences and communications…creating a set of expectations [for your members].”1 Said another way, a brand is simply how people feel about it. When working with clubs to enhance their branding efforts, there are two tools I always use to help me gauge members’ feelings – i.e. that emotional bond between member and club. The first is a two-part question: “If you could describe this club by an animal (or car or cereal), what would that animal be?” This is followed by “Why?” You are not really interested in the actual animal itself, although some of their choices can give
you more pause or more chuckles than others, but rather you are interested in the “why.” Because it is the “why” that yields insights into the members’ feelings about the club brand. The second involves listening to how members refer to their club. Do they say I’m going to “my” club or I’m going to “the” club? There is a big difference. And their choice of adjective gives insights into the strength of their attachment because the “my” becomes a surrogate nickname for your club. I read somewhere that brands need to be carefully nurtured and managed, and like people, they get old and tired and need reinvigorating. I agree. Every board has to perform a regular health check on the club’s brand. I don't mean looking at just rounds played, dues levels, or even food and beverage revenues. I mean fully understanding the health of your brand internally and externally. This means doing regular refresher sessions for all key leaders to ensure that they are passionately connected and understand who they are and where you are going as a club. Your bottom line will thank you! BRB 1. Definition by Eloy Trevino, Prophet, Inc. Chicago.
Happy staff, Happy members ken donovan: president, fiddler’s elboW country club | bedminster, nJ By Heather Arias de Cordoba
“I am all about family,” related Ken Donovan, president of Fiddler’s Elbow Country Club. “Families enjoy their memberships and the families of our 350 employees make it special. We make decisions thinking about the impact on both groups.” “My father co-founded Fiddler’s Elbow Country Club in 1965 and is still active in the operations, although fewer days each week,” related Ken Donovan, the club’s president. “His vision and philosophies are still being carried forward by my sister Maryellen, brother Keith, and me. We treat all of our staff from senior management on down the line as family members and believe they are the key to our success.” In 2017, Donovan introduced a breakthrough initiative that could affect positive change in the entire club world, and perhaps the hospitality industry as a whole. “It’s called the Fiddler’s Lifestyle Initiative, a plan to improve the lives of all staff members,” explained Tom Hurley, general manager. “Staff only parties, family days, trips and the like are included. While long hours will likely always be a part of the hospitality business, we now pay careful attention to how we schedule so we do not burn out our employees, while vacations and benefits (e.g. matching 401k) are generous. page 3
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Matt and Tommy Donovan, Ken’s sons, have incorporated MIT, our Manager-in-Training program, that offers high potential individuals in any department the chance to rotate throughout the club, contributing and learning details of each department and, maybe, become a club manager someday. Club GM Hurley added, “I believe that future club leaders will one day reflect on Fiddler’s Elbow Country Club, under Ken’s direction, as the defining environment that developed future leaders in our industry while fostering a life balance and ultimately reinventing the service culture.” BRB
that Won’t Work Here! We’re different! a board member’s Worst argument By Jerry McCoy
How many times have you heard a board member say, “That won’t work here, we’re different.” They fall back on perceived club cultural habits to defend their position. They discount time-tested business and club industry ‘best practices’ as out of touch with their club culture. When energetic, pro-progress volunteer leaders attempt to question past habits these directors argue so hard they suck all of the air out of the room. Unfortunately, many times the problems clubs face are directly related to cultural habits that can have destructive results. Our cynic directors may argue: • • • • • • • •
We don’t need to survey the membership; we know what the members think We don’t need to waste our time planning; we know what the issues are We are a golf club first; we don’t need to improve the pool and fitness center We need to just keep cutting expenses, not raising dues We can’t just nominate one candidate for each slot on the board; we must have contested elections to make it fair We are debt free; we should not borrow any money for anything except a real emergency We need to get more people using the dining room so we need to keep raising the food and beverage minimum Saturday morning is for men only, we can’t allow women to play.
Unfortunately many clubs have facilitated their problems by electing weak presidents or, God forbid, elect presidents who themselves are the cynics. They have had weak general managers or have tied the GM’s hands. These clubs may have allowed committees to run wild. They have lacked continuity of leadership and each new group takes the club down a new rabbit trail based on someone’s personal agenda. OK, let’s stop here for a minute and say that there has been significant progress in club governance industry wide. Decades ago a majority of clubs faced governance problems. Today a majority of clubs have solved most of those problems. However, there are still a lot of clubs that have not come to grips with the underlying issues that are setting them back. That we regularly see new, energetic, pro-progress leaders taking charge is a real positive. They are redefining club culture, establishing new business practices and positioning the club for clear progress in the future. For those who are just starting, we offer the following ammunition to continue to fight the good fight. So let’s look at some solutions that may benefit these new leaders. 1. Get a copy of The Director’s Guide for Understanding Club Governance. This handbook is a 60 page comprehensive look at all aspects of club governance. The handbook identifies 60 best practices…part of the Governance Checklist companion document that allows a club to audit governance practices and adopt those that are appropriate for your club. The guide is available at cmaa.org/market/marketplace. 2. Invite the cynic to a meeting of your friends that are all pro-progress and discuss possible effective changes to on-going destructive cultural habits. Ask the cynic to provide their opinion regarding issues and open a dialogue with them regarding your opinions. page 5
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3. Build a coalition of like-minded board members. Contact individual board members and have discussions soliciting their support for your proposals. Get the votes in advance so that, however the discussion goes, you have some confidence that the majority of the board will support you. 4. Convince the president to put pro-progress members on the nominating committee. Many times clubs have flexibility on who is appointed to the nominating committee, and it’s critical to get pro-progress individuals on that committee. They will then nominate likeminded people and the progress will begin with them. 5. Befriend the GM to learn what the problems are from their perspective. Many times the GM can really clarify the issues and provide suggestions that can help move things forward. GMs may have the answers but just need critical support that a pro-progress leader can provide. 6. Keep the pressure on by recommending progressive actions and policy changes. Don’t let up. Provide timely information with supporting stories of success Do all this with a smiling, cheerful, optimistic approach and be cautious. The opinionated, argumentative and lost-in-the-past type leaders can be dangerous. First, be careful about how you prove them wrong. They will fight back. They need to be handled with care. So don’t try to prove them wrong. Try to make believers out of them. There is nothing better than a naysayer that switches sides. They can become your best advocate. Remember what Abraham Lincoln said. “If you have 8 hours to chop down a tree, spend 6 hours sharpening the knife.” BRB
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5 f&b marketing trends for private clubs By Mike Phelps
Today, people want their foods to do more than just fill their bellies. The following five trends uncovered by a variety of sources, show the things that are having a significant impact on food and beverage marketing overall and how private clubs can adapt to stay relevant. 1. an increased attention to mindfulness People are inquisitive, and they are paying more attention to where their food comes from, sometimes down to the individual ingredients. Mindfulness is one of the most significant drivers of food & beverage marketing. It’s not just being aware of what you are eating; it’s about where it comes from, and how it’s made. People want to know all of those things. Clubs may want to consider increased transparency around what’s in different menu items, how and where they are sourced, how they are prepared, and how charitable the club is with its excess food product. 2. increased popularity of international cuisine Bold and exotic flavors are at the forefront for consumer food preferences in 2018, and the millennial generation is frequently driving those choice options with their adventurous palates. But it’s not just the flavors of a new region – people are also interested in learning more about the heritage and traditions that surround the foods they eat. As people tend to connect with one another over the things they eat and drink, clubs should consider programs and experiences that bring members together by attracting them to cuisines that teach them about other cultures and broaden their worlds. 3. dining as an experience Last year, for the first time ever U.S. consumers spent more in restaurants and bars than in grocery stores. And, three out of four people now prefer to collect experiences over things. This means that people now expect more than great service and quality food when they dine out. They want entertainment, excitement and memorable moments – the kind that defy expectation and cause
people to want to reach for their camera. Clubs should look for ways to create signature experiences, whether it’s a chef’s table, a tableside kid’s dessert, or a special preparation or signature dish. Every touchpoint from menu design to how the check is presented at the end of the meal is an opportunity to enhance the experience. 4. old is still gold Mom’s meatloaf is enjoying a renaissance. A feeling of home and belonging has always been paramount for clubs, and those dogeared, classic recipes continue to be popular, albeit with modern updates. Tweaks to soups, casseroles, tater tots, even deviled eggs are signaling a return to comfort food with a contemporary twist. Emerging trends are Asian dishes such as Pho and Ramen, which are inexpensive and include fresh ingredients, and healthy bowlbased choices featuring kale, quinoa and more (the “new salad” is comprised of your choice of grain, green, roasted vegetable, and dressing). 5. pHotogenic food Presentation has long been an important element of dining, but Instagram has taken the importance of optics to the next level. Colorful foods and meals with intricate plating styles are coming more and more into play, largely driven by people snapping photos and sharing their dining experiences with the world. As would be expected, eateries must go even further in their efforts to make every plate Instagram-worthy. Chefs and mixologists everywhere must now pay even closer attention to visuals, and focus on creating sharable moments that extend into every other aspect of the dining experience. BRB
f&b 101 for board members By Gordon Welch
As a board member of your club, you have a responsibility to understand the food and beverage operations. First and foremost: no two clubs are alike. I know of clubs that lose more than $300,000 per year in food and beverage and I know a few that break even, however, most generally private clubs loses money in F&B. Let me share with you a GM/COO’s worst nightmare: a board member with a food and beverage background. Why, you may ask? The board member with an F&B background worked or works for a for-profit company. I have worked with both. Usually the local restaurateur is the most difficult because they understand food cost and percentages on F&B just enough to be dangerous. The corporate owner understands the club a bit better. It is your responsibility to understand how your F&B department works. You must understand why your labor costs are so high (because you expect service from morning until late night), and you must understand why your food costs run anywhere from 40 percent to 85 percent depending on your club and its budgeted page 7
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operations. Why do I say understand? Because it’s your fiduciary responsibility to understand why things are like they are. BUT…it is NOT your duty to micromanage the GM, staff or operations. Listen to your management team. I have experienced a club that closed their banquet facilities because a local restaurateur suggested they lost too much money in that operation. The GM and his team offered hard numbers explaining the banquet operations were the only area of F&B that made money for the club (which is typical.) The local restaurant owner had credibility with the board members and they listened. In conclusion, LISTEN to your management team and ask questions. DON’T micromanage. You will have complaints in F&B and your staff will correct any issues. When you are serving hundreds of meals a day, mistakes will happen, and members may have a bad day and just not like their meal or beverage. ENJOY your time on the board! BRB
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“favorite place to dine” and “third place to Hang” drive member retention By Richard Lareau, CCM, CCE, ECM
Do your club members think their club should be a favorite and third place where they, their family and fellow members prefer to dine, socialize and frequently hang out during their free time, even when they are not engaged in a sport or recreational activity? Industry statistics say that 91 percent of club members say YES, their club should be a favorite place to dine, and 89 percent of club managers concur. However, while 79 percent of club managers think their club is a favorite place to dine, only 42 percent of members concur. Why the disparity in perceptions? Are club managers not focused on the same goals and member experience outcomes as their members? Through all the meetings, discussions and planning throughout the year at board and committee levels, how is it that managers and members end up with different perceptions of outcomes when it’s time to evaluate how the club is performing as a dining destination and how happy members are with their daily club experiences? To be a favorite place to dine means your club should be on the list of where your members like to frequent when they dine out; not necessarily their most favorite place to dine, but one they continuously enjoy when dining away from home. Achieving favorite place dining status is critical to establishing your club as a third place in your member’s lives, as almost all social gatherings at your club involve food and beverage and hospitality from the club staff.
A third place, is where your members are drawn to, to hang out when they are not at their first place, their home, or their second place, their work. It’s where members are drawn to during their free and leisure time, their third place. It’s where they feel most comfortable and content, fit in, are equal, and can contribute to the enjoyment and camaraderie of their social group. Is your club both a favorite and third place? Do your members congregate and socialize at your club even when they are not engaged in a sport or recreation activity? If the answer is no, your club is missing out on what best drives member retention. The success of achieving both favorite and third place is driven through club management and members who have an articulated strategic mission and vision for their club. They are statements of who your club serves, what it provides at what quality and value, how your club is unique and what your club aspires to be in the future. Why do members join and stay members of your club? Successful clubs know these answers. The quality and consistency of your club’s food and beverage, hospitality, and social camaraderie are at the core of why your club becomes a favorite and third place, which is at the core of driving member retention. BRB
setting the club up for success lou dilorenzo: president, interlacHen country club | edina, mn By Heather Arias de Cordoba
An impressive list of accomplishments highlights Lou DiLorenzo’s tenure as president of the Interlachen Country Club. Approval of a $9.5 million facilities improvement plan, a successful new membership program, transition to a reserve model for funding capital, review and revision of club policies to fit within the framework of today’s club, improved communication with membership, support of continuing education for the management team and their involvement in industry organizations, and adoption of a new board policy manual, which embraces the GM/COO model are among the reasons why President DiLorenzo is one of BoardRoom’s top presidents for 2017. “Lou is a collaborative and strategic leader. His thoughtful, transparent and progressive approach to managing change has generated trust, support and excitement among our diverse membership,” expressed Interlachen Country Club’s general manager/COO Joel Livingood. The new board policy manual clearly defines the roles and responsibilities of the board of governors, committees, page 9
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department managers and the GM/COO to promote effective and efficient governance and management. The club’s facilities improvement plan greatly enhances the member experience. “Under Lou’s decisive leadership, our club has developed and moved forward with successful membership and facilities improvement plans. Lou has an exceptional ability to clearly communicate the strategic path forward for our club while preserving our club’s rich golf history and tradition,” surmised Peg Hicks, club board secretary. BRB
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6 tips to keep your staff looking sharp
traits of excellent board members By Henry DeLozier
From the grounds to the carpets to the food your chefs produce, it’s your job to make every member’s experience stellar. Staff uniforms are a visible opportunity to reinforce that your club is a well-run operation. Following these tips can help you make that right impression: 1. Set expectations: Remind your staff at least monthly to clean and press their uniforms. Over time, this will become part of the culture. Store an iron and ironing board at your facility just in case. 2. Have some backups: Keep extra uniforms on hand, in several common sizes, so you can accommodate new staff members or shift personnel between dining areas as needed. Make someone on your team responsible for getting those extra uniforms back after use. 3. Let the uniform do some of the work: Look for wrinklefree garment options where possible. Few things are more impressive than staff members who still look fresh at the end of a long shift. 4. Pay attention to fit: Not all shirts are made the same. For a neater appearance, look for garments that offer women’s cut for your female staff and more tailored cut options for men. 5. Set standards for staff-supplied items: For garments that are the responsibility of staff members to supply (like white shirt, black pants, etc.) set standards so there is consistency. 6. Update the look periodically: Even classic garments get revamped by manufacturers, so be open to new cuts and styles. Staff members will enjoy the change and members will notice as well. Sometimes, it just takes updating a single piece like an apron, vest, or tie. Visit www.highenduniforms.com for inspiration. Follow these tips to keep your staff looking sharp and your members impressed! We love to help organizations make the most from their uniform choices, so feel free call and chat with us anytime. BRB
In a 2017 flash poll of leading club managers, Global Golf Advisors found three consistent concerns for private club managers in working with their boards: 1. Board members pursuing or executing a “personal agenda”; 2. Disengaged and nonparticipative board members, and 3. Board room politics. Tim Bakels, the GM/CEO at the Colleton River Club near Hilton Head, SC, hopes for board members who “get it” – those who listen and do not engage without the facts. The best board members, as Bakels sees it, “use the club, have good business sense, and let the operational folks operate and focus on policy.” Bakels wants his board to be inquisitive, informed, and engaged. Board members who put the club first and look for the longterm success and continued strength of the club are essential to effective club leadership. The board cannot be seen by members as a bickering bunch of different viewpoints. At the Capitol Hill Club in Washington, DC Stan Lawson, the club’s GM, benefits from board members who serve as “an extra set of eyes and ears as they use the different services of the club and sharing their comments in a timely manner…not just at a board or committee meeting.” Like Bakels, Lawson receives great insight and guidance from board members who are engaged and active users of the club. “I want our board members to be ambassadors,” he says of the club, which is populated by many U.S. legislators. “Board members who are able to ask, first, if a member with a problem has brought it to management’s attention when confronted as a peer and fellow member by either a perceived or real problem/issue,” are of greatest benefit to Rick Bayliss, the CEO at Lost Tree Club in Palm Beach, FL. Bayliss adds that his club benefits from the healthy perspective and successful background of its board members. That background enables his board members to understand the difference between “governing” and managing. “My board members always acts in a manner that is best for the club…and without a personal agenda,” Bayliss adds. Joshua Tanner, the GM/COO at Ironwood Country Club in Palm Desert, CA, observes that the best board members (1) have the ability to think strategically, (2) understand the core values of the club and make decisions that are in alignment with those values, and (3) listen more than they speak, but when they speak they are well educated and well spoken.” Board members who are engaged, informed, and disciplined in supporting the values and purpose of their clubs are the most effective for successful clubs. BRB
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roadblocks between members and the club By Peter Cafaro
Over the past year we have all experienced roadblocks caused by fires, floods, tornados Nor’ Easters, and the list goes on. Thankfully, these roadblocks for the most part were all quickly removed but not before causing much inconvenience to many. Have you ever stopped to consider what roadblocks exist between your members and their club? Of course, we are not speaking literally but all clubs, knowingly or unknowingly, allow roadblocks of many types to inconvenience, disrupt and even diminish their members’ use and enjoyment of the club. Will your members go home to change clothes before using the club? Will your members think to check the calendar to see if there is an event preventing their dining? The answer is no! They will just choose one of the multitudes of dining and recreation options that, in many cases, they must literally “drive by” to get to the club. The key to your club’s success is the ability to engage, entertain and enrich its members. In order to do so they must be inclined to use the club. The club should always be on your members’ radar as a genuine option. Members are predisposed to use their club, after all, they are already paying what many consider to be a substantial sum each year just for the right to spend even more at their club of choice. To take advantage of this predisposition, all you really have to do is remove the roadblocks. If you are having difficulty thinking of roadblocks standing in your members’ way, perhaps some of these may be familiar: • Using the main member dining area for event space so members must call or check their calendar before coming to the club
•
• • • • • • • • • •
Strict dress code, which does not allow such common family dress as soccer uniforms, tennis togs and of, course…DENIM! Different day – different dress code No comfortable place to get a little work done before golf Expecting members to dine in outdated or uncomfortable surroundings Lack of integrated family dining space Expecting members to not want to watch the big game at the bar Scheduling events which disrupt parking and dining service for members Expecting your members to not want to use the gym Outdated or limited menu selections Restrictive dining/bar hours Lack of dining venue variety
In today’s club environment the key to success is to engage your members – every day! The list above is just a few ways members can be turned away from using their club more regularly. If your members are not engaged – they will begin to question the why. That may lead to a decision to find value elsewhere. Worse yet, members who are not engaged and excited about their club are rather unlikely to introduce their friends – creating a different kind of roadblock – one that will eventually lead to the end of the road! BRB
making the most of your f&b department By Rick Snellinger
In order to operate a successful F&B department, clubs must implement dining practices that cater to member needs and carefully study F&B operational costs to determine opportunities for greater efficiency. [Click here to read the full article on Chambers’ ClubView Blog.] increasing utilization Today’s private club members are on-the-go—their careers and vacations take them to cities all over the world where they encounter a vast array of cultures and culinary alternatives. They have come to expect a taste of this variety in their own club as well. What makes private clubs special is their sense of community—and the key is to supplement the club’s sense of community with the energetic atmosphere and exceptional service they would find at a new restaurant.
can conserve water by using low-flow pre-rinse sprays and faucets, dishwashers that reuse water from their final rinse tank to the wash tank, or ice makers that use 98 percent of the water for ice making. Other leading energy saving equipment includes on-demand ventilation hoods, auto-closing doors on walk-in coolers, and single back-bar walk-in cooler with sliding windows instead of individual refrigerators—all of which Short advises can be installed at relatively low costs compared to the amount of money they help clubs save.
responding to local restaurants As cities continue to grow, private clubs must respond to the evolution of food and beverage offerings by offering more sophisticated menu options, diverse food palettes, and flexible dining spaces. It’s important to complement the other restaurants in town rather than compete with them. Menu selections should be dynamic and appeal to different age groups, while also speaking to each season. These tactics are a surefire way to help keep members interested and engaged.
identifying energy saving opportunities Some energy-saving methods are as simple as implementing new policies, such as washing only full racks in the dishwasher, reducing the number of burners in use whenever possible, turning lights off in areas that aren’t in use, etc. Consistency is key, and it is important to audit and revise policies regularly. There are many ways to reduce energy costs and increase member utilization; however, in order to reach the full potential of your F&B department, it takes a team effort. Club leaders must be sure to communicate their specific F&B goals for quality, service and efficiency with the staff to ensure everyone is working toward a common objective. BRB
utilizing sustainable equipment Energy isn’t free, so a sustainable operation is critical. Clubs page 13
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is f&b programming key to Hearts of millennials? By Bennett DeLozier
How do trends regarding casual dining improvements relate to the habits of Millennial golfers? Here’s what we know: socialization and camaraderie • Global Golf Advisors (GGA) research revealed that key factors influencing Millennials’ decision to join a private club are recommendations from friends, family, and colleagues (83 percent); a positive experience attending a tournament or wedding at the club (64 percent); and a reception or cocktail party hosted to promote membership (25 percent). • More than half (57percent) of Millennials surveyed regard socialization and events as an important non-golf amenity and social component in their evaluations of a club’s appeal. • Two-thirds (67 percent) of Millennials organize a golf trip or getaway with their friends and family. More than half (53 percent) do so at least once per year. • Millennials who are willing to traveling to play golf are most interested to take trips to states where there is aquatic/epipelagic access, favorable weather/climate, scenic landscape, or a vibrant social/night life.
group events WitH dining enable socialization • Social events where food and drink are offered cast a wide net: these are the most highly utilized elements of clubs because members want to socialize. For Millennials, their clubs and the places they go should make it easier to engage with their friends. • These events draw strong participation and engagement from members because they do not require skill or athleticism and appeal to all ages and demographics. If, for no other reason, social events exhibit high utilization because humans eat three times a day – only the lucky can play golf daily, let alone thrice.
socialization correlates to HigH levels of satisfaction. Aggregate analysis on member survey data from more than 50 clubs participating in GGA’s Strategic Intelligence platform
revealed that ratings for the clubhouse, food and beverage offerings, and social atmosphere exhibited the highest correlation with a club’s overall satisfaction rating. • Clubhouse ratings exhibited a moderate correlation to overall satisfaction, higher than that of the golf course. • Food and beverage ratings were the second-most-correlated area to overall member satisfaction. Approximately three-quarters of clubs with above-average F&B ratings also exhibited aboveaverage overall satisfaction. • Social atmosphere ratings were found to be the most correlated area to overall club satisfaction. Atmosphere being the sense of ‘feeling welcome’, ‘ interacting with other members’, ‘friendliness of other members’, and ‘family-friendliness of the club’. All clubs with above-average social atmosphere ratings exhibited aboveaverage overall satisfaction. Meanwhile, all clubs with below-average social atmosphere ratings had below-average overall satisfaction ratings.
putting it all togetHer These findings paint the following picture: the clubhouse impacts member satisfaction; food and beverage events typically take place within the clubhouse and have a greater impact on member satisfaction; and a club’s social atmosphere is both defined within the context of food and beverage events and has the greatest impact on member satisfaction. If (A) socialization is particularly important to Millennial golfers, (B) dining events best enable socialization among community groups, and (C) strong performance ratings for socialization can beget strong overall satisfaction ratings, it stands to reason that competitive food and beverage offerings can appeal to Millennial values on the basis of offering low-stakes opportunities for socialization. BRB
a professional approach to clubhouse décor By Michael Crandal, CNG
A club is wise in retaining the professional services of an interior design firm with proven expertise in developing allencompassing master plans, broken down into phases over time. Great clubs have policies that preclude members being allowed to meddle in clubhouse décor. They also have an approved professional master plan that is reviewed and monitored annually. There are outstanding national design firms that specialize in high-quality design for private clubs. Have a few visit and prepare a first impressions report. Select a firm that best reflects your unique club traditions and culture. Plan on retaining their services for at least three years to ensure continuity and constant adherence to the board approved master plan. A professional design firm will create detailed layouts specifically indicating where each piece of furniture is to be placed, artwork is to be hung, at what height, and where every lamp is to be placed, etc... Amateurs should be doing none of these things. Routinely schedule two professional “walk-throughs” every year. 1) Six weeks prior to annual shut down for maintenance and employee vacations, your design firm will then: • Identify furniture repair/replacement • Select colors and types of paint to touch-up needed areas • Indicate specific lighting throughout the club • Identify wall coverings that need repair • Select appropriate flooring • Recommend fabrics, textures, styles, window treatments. page 15
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boardROOM briefs MAY/JUNE
2) Routinely schedule a second walk through seven months deep into your fiscal year: This allows time to identify areas, get competitive bids, and prepare a written report. This report serves as a blueprint for management to professionally guide the recommendations that the board will ultimately consider when approving various repairs and/or improvements into the next fiscal year’s budgets. With the discipline of at least two annual professional walkthroughs and detailed written documentation, you know in advance exactly: What is to be done, when to do it, how much it will cost, who is going to do it, and why it be done at all. Keep in mind the importance of coordinating these three areas: 1. A dedicated housekeeping staff. 2. A systematic preventative maintenance program. 3. A relationship with your professional design firm. Even a great master design plan is wasted if daily housekeeping is lacking or faulty mechanical equipment causes damage. With a dedicated approach to housekeeping, a systematic approach to preventative maintenance, and a professional approach to clubhouse décor, your clubhouse will reflect stability, quality and continuity for many years. BRB