FALL 2011
–8–
BIG BASH THEORY Insiders’ secrets to organizing major events
– 15 – EMPLOYEE LIABILITY
Your legal obligations for benefit and pension programs
– 18 – GREENING THE CLUBHOUSE What today’s members are expecting from their club
– 20 – NPO AND SURPLUSES
Revenue Canada’s changing views on tax exemptions
– ONLINE AT: WWW.CSCM.ORG –
– 29 – TEA TIME
Create a new revenue stream from this unlikely source
FALL 2011
FALL 2011
Promoting excellence in professional club management in Canada.
MESSAGE FROM THE PRESIDENT
2011-2012 Executive Committee
Message from the Editorial Committee
President Greg Lundmark, CCM VICE President
Greg Richardson, CCM
2011-2012 Board of Directors
4 Valuable achievements in the past year 6 Fall is the ideal time to put your strategies in place
COMPETENCIES
Carol-Ann Goering, CCM John Gravett, CCM Kevin Hurd Keith Jolly Nicolas Rodrigue Neil Rooney, CCM Ian Scott Elizabeth Di Chiara, CAE - Executive Director
FOOD & BEVERAGE MANAGEMENT/GOLF/SPORTS & RECREATION MANAGEMENT
Executive Director
BY JEFF GERMOND
8 The Big Bash Theory Secrets to organizing a major event from managers who have been there
Elizabeth Di Chiara, CAE
HUMAN & PROFESSIONAL RESOURCES
National Office
2943B Bloor Street West Etobicoke, Ontario, Canada M8X 1B3 Tel: (416) 979-0640 Toll free: 1-877-376-CSCM Fax: (416) 979-1144 Email: national@cscm.org Website: www.cscm.org
15 Employer Liability Your responsibilities for benefit programs and pension plans By J. TIM WADE AND CAROL SOLUK
FACILITIES MANAGEMENT
Editorial Advisory Committee
18 Greening the Clubhouse
Chair
What today’s members are expecting from their clubs
Kimberley Iwamoto, CCM
Committee Ryan Hughes
Jana-Lyn Fairbairn Leanne Pepper Jason Sigurdson Michael Hearse Staff Liaison Beverley Benjamin
By JC SCOTT
EXTERNAL & GOVERNMENTAL INFLUENCES 20
When Can an NPO Earn a Surplus?
What the Canada Revenue Agency requires today Club Manager Quarterly is published
quarterly with copy deadlines on the first day of March, June, September and November. Managing Editor
Stephen McNeill McNeill Communications Art Director Eric Pezik McNeill Communications Printing Sportswood Printing Canadian publications agreement #40032775 Published Oct 2011/CSCM-Q0308
BY SUSAN M. MANWARING AND ANDREW VALENTINE
FOOD & BEVERAGE MANAGEMENT/FACILITIES MANAGEMENT 25
Waste Not
How to save money through composting BY DANIELLE KNIGHT
FOOD & BEVERAGE MANAGEMENT 29 Tea Time Discover how this beverage can create a new revenue stream BY SHABNAM WEBER
online at: www.cscm.org cSCM.org
FALL 2011 | club manager quarterly
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LAST Word
Valuable achievements in the past year
Bill Morari CSCM President 2010-2011 GM, The National Club
It has been a tremendous honour and pleasure to serve as your President during this past year. Since this is my last message for Club Manager Quarterly as President, I would like to take this opportunity to thank all members of Canadian Society of Club Managers (CSCM), who generously volunteered their time to serve on committees, branch boards, or at conferences. Without the support of our membership, we could not provide the many valuable benefits and services that make CSCM the great organization that it has become. A personal highlight was the opportunity to meet many of you at your branch events as I travelled across the country. I am very impressed by the level of commitment of our members, who organize and attend the branch professional development and social networking events. Their enthusiasm for sharing information, experiences and willingness to upgrade their management skills not only benefits all of us personally, but also in our roles at our clubs. This is what makes CSCM such a unique organization. Despite continuing uncertainty in the global economy that has impacted Canada we have had a very successful year on many fronts. Our 2010 Conference in London, and this year’s in Montreal, were among the best attended in the 50-plus years that we’ve been holding them. Also deserving honourable mention was the very 4
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successful Food and Beverage Conference in Niagara-on-the-Lake. The record attendance at these conferences clearly demonstrates that there is appetite to learn, no matter what stage you are at in your career. The Inaugural Leadership Forum held in April in Kelowna, B.C. was a new concept that worked out extremely well. It was attended by national board members and branch presidents from across Canada. In addition to an orientation program, we conducted a focused leadership discussion on key areas that have impact on members. Branch presidents provided valuable input on ways of enhancing the CSCM value proposition, professional development and assisting with membership growth, as well as supporting each other to implement our plans successfully.
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Without the support of our membership, we could not provide the many valuable benefits and services that make CSCM the great organization that it has become.
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Membership – This was a banner year for membership growth as we reached an all-time high of 560. We must not rest on our laurels, but instead do our best to identify and encourage colleagues to join CSCM. Continuous membership growth is crucial for any organization or club. Let’s aim for 600 in 2012! Our Corporate Partners are essential to our ability to provide first rate benefits, services and programs for our membership. We secured two new partners for 2011 – SYSCO at the Premier Corporate Partner level, and the world-famous John Deere, at the Elite Partnership level; while we continue to enjoy our longtime partnership with BFL Canada, Club Car, VGM Club, and BUZ Software, and are very happy to announce that Jonas has renewed its partnership for a five-year period. We thank all of them for their valuable support. Club of the Year Award – This again is another new innovation launched by CSCM. The role of the award is to recognize clubs that have shown significant innovation, leadership and social responsibility in the club industry. For purposes of the award, clubs are divided into three categories, based on annual business receipts: Small, medium, and large. The winner in the small category, under $2 million, was the Calgary Curling Club; medium, $2 - $5 million, the Granite Golf Club; and large, over $5 million, the Scarboro Golf and Country Club. Congratulations one and all. CRA Audit Initiative – This new initiative in collaboration with Grant Thornton and Miller T homson is intended to address the challenges created by Canada Revenue Agency’s recent review of not-forprofit organizations, particularly clubs. Current practices with respect to areas cSCM.org
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Contributing to CSCM is very satisfying and a good way to ’pay it forward.’ If you’re not already volunteering, please give it your consideration.
such as revenue generating cost centres and the wording within bylaws could potentially threaten many clubs’ not-for-profit status. Thanks to the generosity of the membership in supporting this important initiative financially, we are moving forward. The Certification and Professional Development Committees have been working hard! BMI I Club Management, our second BMI course in Canada, is set to run next January in partnership with the Ryerson University’s Ted Rogers School of Tourism and Hospitality Management. We are also working with CMAA (Club Managers Association of America) on a Canadianized version of the Certified Club Manager (CCM) exam. Our ultimate goal within our strategic plan is to enable managers to fully qualify and be able to take the exam in Canada. National Lobby Day – As a member of the National Allied Golf Associations (NAGA), CSCM helped launch golf’s first national government relations campaign this past spring. Working with the provincial golf groups, the initiative concluded with a Federal Lobby Day on June 7, where we met with over 40 Senators, MPs and Ministers. It was an all-round success. The campaign was subsequently recognized by the Canadian Society of Association Executives for its Annual Award of Excellence in Government Relations as part of the CSAE award series “Associations Make a Better Canada.” The Online Suppliers Directory – Launched as an opportunity to provide an ongoing source of non-dues revenue for CSCM. Sales have been a little softer than anticipated. However, the Business Development Committee cSCM.org
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is addressing some of the challenges with the sales process and is committed to continuing to grow the directory. Your assistance, by encouraging suppliers to sign up, will greatly assist in our efforts of having an ongoing source of revenue to provide even greater benefits for our membership. In closing, I’d like to thank the wonderful people who, in countless ways, helped me out during my term of office and on the Board. Their dedication and hard work are the main reasons for CSCM’s success.
Brooke Phemister, our first full-time Conference Manager, wears several hats, not only looking after the multitude of details related to the annual conferences, but also has worked on bringing in new corporate sponsors and took a lead role with the suppliers directory. Brooke has made a real difference and has done a great job on behalf of CSCM. Manager, Member Services, Beverley Benjamin, keeps everything related to membership on track, and is largely responsible for the success with growing our membership this year. She also plays an important part in many of CSCM’s ongoing activities such as CMQ and our Awards program. Both she and Elizabeth run the National Office in Toronto with great competence and dedication. I’d like to thank Beverley for her successful role in our recruitment and retention efforts this past year. Well done. Executive Director Elizabeth Di Chiara is a person with a seemingly inexhaustible source of energy. She has been an important player in bringing CSCM to its current enviable status.
Thanks to Elizabeth, we are able to take on projects from beginning to end, in spite of the numbers of years and presidents involved. During her spare time (I don’t know where she finds it), Elizabeth serves on the Board of NAGA, her Alumni Association Board, has been elected as Vice President of her community association, and is involved with the Canadian Society of Association Executives, all of which ultimately benefits CSCM. In short, she is an incredible asset and we are extremely fortunate to have such a dedicated professional managing our Society. My deepest appreciation is also extended to the National Board Members and Committee Chairs and our wonderful members from coast to coast, many of whom I call my friends, who helped provide CSCM with a memorable year. I’ve greatly enjoyed my term as President. It was wonderful to meet so many members. Contributing to CSCM is very satisfying and a good way to “pay it forward.” If you’re not already volunteering, please give it your consideration. Your contribution could be big or small and you will find it a rewarding experience. I extend best wishes for a successful year to incoming President Greg Lundmark, CCM. It is always the role of the outgoing, President to leave the Society in a little better shape than when they assumed office. I can assure you that, with Greg’s leadership, CSCM will be in very good hands as we move forward. Best wishes, Bill Morari, CSCM National President 2010-2011 FALL 2011 | club manager quarterly
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Rejuvenate & Renew Fall is the ideal time to put your strategies in place By Kim Iwamoto, ccm Chair of the Editorial Advisory Commit tee
Some of us consider New Year’s the time to make resolutions, rejuvenate ourselves and our clubs. Others find that this is the perfect time of year to review the season, looking carefully at successes, which results weren’t implemented quite as planned and next steps. General managers will be challenging senior staff to finish employee reviews, suggesting that good notes will help for next year’s hiring. They will create budgets, develop capital improvement plans, manage member satisfaction surveys and ensure the club is ready for yet more legislative changes, while keeping both members and staff satisfied. I challenge each of you to consider the future and find yet more improvements to member service while keeping to a nominal increase in dues. (We haven’t heard that one before!) Our role will continue to include helping incoming board and committees understand their role and provide retiring members their proper thanks for commitment and service to the club. We will certainly have found strategies, tips and more information on how to do these things and more at the National Conference in Montreal. I look forward to it every year! As you read about greening your club, benefits management and how imperative it is for you or your team to have a good understanding of the rules, CRA rulings and how those may impact the way you do business, as well as The Big Bash Theory, consider how these articles may assist you and your clubs. If you don’t do so already, I would encourage you to share Club Manager Quarterly with those who “need to know.” Give them a chance to read your copy at the club, or better yet, consider additional subscriptions for your team or board of directors. At CMQ, fall is a time of renewal as well. We continually renew; refining the value you find in the publication as the Editorial
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Committee strives to provide you a wide breadth of information presented in such a way as to entice thought and discussion. Beverley is an amazing asset to the organization, and I enjoy working with her as well as our Editor Steve McNeill. Jana Lyn of The Clencoe Club, Jason Sigurdson, Shaughnessy Golf & Country Club, Leanne Pepper, Toronto University Faculty Club, Michael Hearse, Dundas Valley Golf & Curling Club, Nicholas Rodrigue, Club de Golf Le Blainvillier and Ryan Hughes, Beach Grove Golf & Country Club, are terrific club professionals with good ideas and a strong commitment to their craft. Their experience and skills are a true sample of our membership base and collectively we enjoy making this magazine come to life each quarter.
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I challenge each of you to consider the future and find yet more improvements to member service while keeping to a nominal increase in dues.
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Every year we also put a call out to those of you who are interested in becoming more involved in our Committee. If you have a passion for the written word, guest writers are encouraged. Interested? Give Beverley or myself a call and we would be pleased to discuss the commitment and hours required. cSCM.org
Dave Genevro
General Manager Barefoot Resort & Golf
Whether you need a part overnight or say, two eets of equipment overnight. We take routine customer support to a whole new dimension. As Dave Genevro discovered when he lost two courses’ worth of equipment in a re. Within 24 hours, his operation had all the critical equipment it needed, and 36 hours later, two complete replacement eets. All without money changing hands, thanks to coordination between his distributor, Revels Turf & Tractor, and John Deere Financial. Who continued to work with Dave in the months that followed to help with the complex insurance resolution and to structure a new lease. Extraordinary? Hardly. We’d try to do the same thing for every one of our customers. If that’s the kind of service you want to count on, then contact your John Deere Golf rep. Or visit JohnDeere.com/Golf - and check out the full Barefoot Resort & Golf story. 49621
Think Ahead.
The Big Bash Theory
Secrets to organizing a major event from managers who have been there By Jeff Germond
+ Food & Beverage Management + Golf + Sports & Recreation Management +
JOE MURPHY CEO and GM of St. George’s Golf & Country Club, Toronto I was fortunate to moder ate a fascinating panel at the National Food and Beverage Conference “From Good to Great” recently held in Niagara-on-the-Lake. The panel of general managers had assembled to discuss their past experiences in running major events at their respective clubs. On the panel were general managers from two of the top golf courses in Canada, Canadian Society of Club Managers (CSCM) National President Bill Morari presenting on behalf of one of the busiest, most respected and successful city clubs, and a general manager from an exclusive private club in New Jersey overlooking the Statue of Liberty. We spent an hour and a half on their presentations and, from the feedback, it was a well received, motivational and entertaining session. In planning for this session, the Organizing Committee wanted to bring a host of ideas from different venues so the participants may be able to localize some of the ideas to their own clubs. Every club has functions, but how do we compare a Canadian Open to a two-day member guest? In essence, we felt all functions have many similarities that even the smallest can share. Special events within a club are the most challenging, rewarding and creative parts of a manager’s duties. Certainly with special events, the club manager has the opportunity to showcase his or her facility and staff. The panel of industry heavyweights was certainly a group of managers who like to have fun and get the job done efficiently and effectively at the same time. 8
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THE PANEL Joe Murphy, CEO and General Manager at St. George’s Golf & Country Club in Toronto. George Pinches , COO and General Manager at the Hamilton Golf & Country Club in Ancaster, Ontario. Bill Morari , COO and General Manager at The National Club in Toronto.
M ar te l M eye r , G eneral Manager at Liberty National in New Jersey.
Prior to returning to St. George’s, Joe served as the General Manger and Chief Operating Officer at Scarboro Golf & Country Club for seven years. Joe has been involved in the golf industry for over 20 years, commencing his career at the Hamilton Golf & Country Club. Before joining St. George’s in 1994, Joe was the General Manager of the Islington Golf & Country Club. Joe is a member of the CSCM and was the President of the Ontario Branch in 1996. In 2004, Joe was named “Club Manager of the Year” by CSCM and Score Magazine. The St. George’s membership overwhelmingly supported hosting the 2010 RBC Canadian Open and, when preparing, Joe and St. George’s set some objectives for his team – profile the city, Club and community while hosting the most successful RBC Canadian Open ever. Fostering pride amongst the staff and members was an overriding theme in Joe’s presentation. The camaraderie within the members and morale of the staff showed with the commitment to teamwork throughout the week. Joe already was starting with one of the finest golf courses in the country, but planning around some logistical issues such as closing Islington Avenue, securing an alternate location for a range and multiple food and beverage delivery and storage concerns posed a challenge in the planning process. Securing a relationship with the Islington Golf & Country Club as the site for the range was a great partnership and a relatively seamless transition for the players. However, it posed some logistical planning for everyone involved as many volunteers cscm.org
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Special events within a club are the most challenging, rewarding and creative parts of a manager’s duties.
were required to transport between locations throughout the week. St. George’s handled all of the clubhouse food and beverage for RBC’s guests, clients, players and families – approximately 1,300 meals per day and $500,000 in revenue for the week. Also throughout the week were special pro-am themed meals and buffets that changed on a daily basis. A caterer was used for all on-course food and beverage including all of the skyboxes – approximately 16,000 meals per day. The chef and food and beverage team can proudly boast that the players touted the Canadian Open as the best food on the Tour at that time last year. Giving back to golf and the community was just as important to St. George’s as putting cSCM.org
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on a world-class event in a world-class city.
GEORGE PINCHES
Giving back to golf and the community was just as important to St. George’s as putting on a world-class event in a world-class city.
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COO and GM of Hamilton Golf & Country Club, Ancaster, Ontario George has been a private club General Manager for over 30 years, having managed five clubs in three provinces. He has also been involved with both the CSCM and the Club Managers Association of America (CMAA) and has served as President of two CSCM branches and one CMAA Chapter, as CSCM National President and as a session leader or guest speaker at industry events. He received the Score Golf “Club Manager of the Year” Award in 2007 and the CSCM President’s Award in 2010. Currently, George participates in the International Relations and FALL 2011 | club manager quarterly
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THE BIG BASH THEORY
Membership Task Force for CMAA. George has been involved in a number of tournaments and events including Canadian Tour, LPGA and PGA tournaments. He is now involved with preparations for a third PGA event, the Canadian Open, to be held at his Club next year. Needless to say, not asking George to be part of this panel was like not asking Wayne Gretzky to come talk about hockey. In helping sell this to his members, George came up with reasons to hold an event of this magnitude, again, at Hamilton: > Tradition – Hamilton has hosted many previous amateur and professional events. > To foster member pride by having a 10
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common purpose and positive focus in hosting a great event. The Club has an excellent core group of volunteers.
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Many great courses in Canada cannot hold the Open because of space limitations or course length.
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> To assume their share of hosting tournaments of excellence in Canada. > To develop staff by providing them with experience in hosting professional tournaments. > To periodically review course changes to ensure a “competitive challenge,” taking into consideration modern equipment, etc. > To obtain recognition within the golf community, media, players. > Because Hamilton can – they have the competitive course, clubhouse facility and acreage for the other infrastructure. Many cscm.org
great courses in Canada ca n not hold t he Open because of space limitations or course length.
the knowledge and experience from holding a previous Canadian Open in 2003.
MARTEL MEYER
> Because they were asked and, subsequently, t he sha re holder s voted i n favour of hosting the Open in 2003, 2006 and 2012.
General Manager of The Liberty National Golf Club, New Jersey Martel joined the team at Liberty National Golf Club in July 2008 as the General Manager. He comes from Old Westbury Country Club in Long Island, N.Y., where he successfully oversaw operations for eight years. Martel’s achievements at Old Westbury are indicated by the high marks they recently received from the McMahon Group, which ranked the Club as one of the highest in America for service, golf and food. During his tenure, he had developed a loyal following of members and employees, while improving service, food, revenue, morale, and facilities management.
George has lots to offer from years of experience; you cannot over plan! In rapid fire, George rhymed off many great thoughts he has taken away over the years: > Delineate clear lines of responsibility and authority. > Negotiate everything up front or lose leverage later. > Trust everyone – but cut the cards. > Do not look stressed; keep it behind closed doors. > Suppliers are your partners; use them to your fullest. > Learn from your mistakes. > Ensure a memorable and rewarding experience for your staff. > Be sure to take the time during the event to enjoy the benefits of your hard work. George also made certain that this was a memorable event for the staff as he involved all levels of the management staff in meetings with Golf Canada to ensure ownership in the planning process. Each member of the management staff was empowered to make this event a success, including input on each day’s operation; it certainly didn’t hurt having cSCM.org
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‘Play nice’ and enjoy a pro-active relationship with ALL outside sources is critical. The right attitude goes a long way when working with local authorities.
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Martel certainly has one of the most unique clubs with its proximity to New York City and the Statue of Liberty and features a 15-minute boat ride to Manhattan or, for those who can, a helipad for a quicker entrance and exit. We knew we were in store for a different club presentation when Martel described each food and beverage menu in their dining room uses an iPad. Martel gave us an overview of his impressive Club and some of the parties he has hosted over the years. Liberty National has been the host for the Barclays since 2009 and Martel has plenty of advice to share. “Play nice” and enjoy a pro-active relationship with ALL outside sources is critical. FALL 2011 | club manager quarterly
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THE BIG BASH THEORY
The right attitude goes a long way when working with local authorities. Typically, these agencies have a lot of backto-back events all year and, to them, your event is just another event on the calendar. These events are not convenient for the agencies and they are doing their best to keep everyone and everything safe and intact. It’s in everyone’s best interest to follow the regulations and be a team player. “Know the rules but plan for changes.” Never assume the rules are the same as the last time you worked on a similar event.
hardly the thing that makes memories. The road to excitement starts when your event is one where people are curious or downright excited. Appealing themes will play a big part in establishing that level of excitement. Original themes can be hard to come up with, but take an established idea and give it your twist. The ability to deliver something to our members that puts them in another time or place for those few hours they’re with us will determine the excitement and appeal the event holds for them.
BILL MORARI COO and GM of The National Club, Toronto, and National President of CSCM 2010-2011
“Hope for the best; plan for the worst.” As with any outdoor event, Mother Nature is not always mindful of your event plans. Be sure to plan worst case scenarios for weather on event days, installation and dismantling. “Experience counts!” Rely on good vendors and service providers and spend time selecting wisely. Solicit other club managers to manage specific areas during the event. “Size does matter.” Actual attendance impacts everything from the level of security to the number of service staff and supplies needed. Hold hospitality clients to realistic and firm guarantees and challenge numbers if necessary. Try to get historical data but always plan for 10 percent more. “It’s all about the permits.” Planning a public event begins – and might unexpectedly end – with the permitting process. An event without a strong theme is nothing more than a function. Not all bad but 12
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Never assume the rules are the same as the last time you worked on a similar event.
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Bill has been employed in the hospitality industry for almost 35 years, commencing his career with Canadian Pacific Hotels. After five years with CP, where he honed his management skills as manager of one of their fine restaurant properties in Toronto, Bill embarked on his career in the club industry. He has been employed for the past 29 years at The National Club, holding the position of General Manager and COO since 1997. In his role there, in addition to 10 – 15 major club events annually, Bill has organized events for members, large corporations, diplomats and prime ministers. Bill has served CSCM Ontario Branch as a Director and President (2005). At the National level, he has served as Chair of the Business Development Committee, as a Director on the National Board since 2007, and as National President 2010-2011.
cscm.org
He is also an active Rotarian and is a Past President of The Rotary Club of Toronto (RCT), 2008 – 2009, where he actively participated in their major fundraising special events. Bill is currently serving on the RTC Centennial Gala Planning Committee, organizing special events worthy of celebrating the Club’s 100th Anniversary. The National Club in Toronto is a city club that was founded for political, business and social reasons and Bill has seen many changes over the years with the demographics, which in turn changed the way they do business. The younger membership has created opportunities for more family-style events such as Christmas, Easter and Thanksgiving and Bill never turns down a request to attend. cSCM.org
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The younger membership has created opportunities for more family-style events such as Christmas, Easter and Thanksgiving.
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The Club events play a large role in creating a culture and atmosphere. Many members use these events to meet and network with new friends and business acquaintances. The National is an extremely busy Club and typically hosts hundreds of member events each year which contributes to 75 percent of their food and beverage revenue. Bill firmly believes that these events play a strong role in member recruitment and retention as they help engage the membership and help provide that extra reason to want to show up at the Club. Club events are also an excellent way for new members to integrate into the Club. Bill described the Orient Express theme party that required months of planning and thinking outside the box and, of FALL 2011 | club manager quarterly
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THE BIG BASH THEORY
course, great team work. The party closed the Club, required seatings at all levels and challenged the staff to outperform and create an amazing experience. The National Club also holds monthly wine tastings supported by their sommelier and knowledgeable staff. Many other events round out the calendar including such parties as the Annual Oyster and Seafood extravaganza, gourmet dinners, Giving Back event, and much more.
Bill left us with two quotes on creative thinking; it can either help you with solutions when planning your next big event, or not.
All events have some unique challenges such as dealing with protocol officers when prime ministers, government officials, or royalty attend an event, or even dealing with the mother of the bride!
“Nature gave man two ends – one to sit on and one to think with. Ever since then, man’s success or failure has been dependent on the one he uses the most”.
“The key to success is to risk thinking unconventional thoughts. Convention is the enemy of progress. If you go down just one corridor of thought, you never get to see what’s in the rooms leading off it”. - Trevor Baylis
- George Kirkpatrick
It was great being a part of this session in Niagara. Seeing and hearing from other clubs and the way they are managed and presented will help us “borrow” ideas to help keep our own clubs fresh. Thanks again to everyone who participated in this great session. Born in Oshawa and raised in London, Jeff Germond has had the pleasure of working at some of the finest clubs in Ontario and working with some of the best mentors in the world – they know who they are. Jeff has called home the St. Thomas Golf & Country Club, Markland Wood Golf & Country Club, Hamilton Golf & Country Club, the National Golf Club of Canada, and is currently the General Manager at the St. Catharines Golf & Country Club.
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to CSCM members since 1991. As Exclusive Corporate Partner to the CSCM, our goal is to work with clubs over the long term providing extraordinary advice and customer service.
Employer Liability
Contact us today and discover why BFL Consulting Services Inc. is the private club industry’s brokerage of choice. BY J. Tim Wade, Senior Benefit Consultant & Carol Soluk, Client Service Manager
Your responsibilities for benefit programs and pension plans For more information call 866.688.9888 BFL CANADA Consulting Services Inc., Toronto or visit www.BFLCANADA.ca
Consulting Services Inc.
If the administrator does not administer the policy in accordance with the insurance company’s instructions which is outlined in the Administration Section of the policy, the owners, directors and/or administrator could be held responsible for the insurance coverage and/or claims.
The big question is how do clubs structure a plan that is attractive to top talent and yet is cost effective? These are very challenging times for clubs. They need to attract new membership, offer better/increased services, increase revenues while keeping costs in line. But the costs of these programs impact their bottom line, so how does a club who wants to attract and retain the best employees keep the expense of these plans affordable? One strategy is to consider an employee benefit insurance plan like the one offered by the Canadian Society of Club Managers, which allows group volume discounts and therefore has an advantage over individual clubs who go to the marketplace. Each club still has its own plan tailored to its particular culture and requirements. Conducting a thorough audit of the employee benefit program is a must. A thorough audit would take into account which employees are being covered, the type of plan structure, the claims experience and the costs. All these factors can help to keep these costs in line. An area that is often missed and yet is the most important part of the audit is the administration of the plan. Administrators play a key role in the management of the various requests made by their employees. It is the administrator’s responsibility to ensure that each employee is fully aware of his/her
cSCM.org
rights and obligations under the employee benefits and pension plans and to communicate this information in an effective manner. This is a significant obligation of an administrator.
The following is a sample of the contractual responsibilities in respect to employee benefit plans:
+ Human & Professional Resources +
In today’s environment, clubs are looking to hire and retain the best talent the industry has to offer. One of the key considerations a potential employee considers when deciding to accept a club’s offer is: “What kind of benefits does the club have to offer to protect me and my family and does the club have a pension plan to help me provide for my retirement? Clubs that have these programs for their employees are experiencing the advantage of attracting and retaining their key people.
> Enrolling employees within 31 days of eligibility. Failing to do so, the employee has to prove medical insurability and if he and/or his dependents do not qualify, the employer will be responsible for claims that arise for both employee and his dependents.
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A thorough audit would take into account which employees are being covered, the type of plan structure, the claims experience and the costs.
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> Employees who are eligible for life and long-term disability waiver of premium need to apply to the insurance company. Failure on the part of the administrator to inform the employee would result in the employer paying the employee’s portion of the life and long-term disability premium. > Terminated employees must be notified they are eligible for conversion of their life insurance. If the administrator does not inform the employee within the prescribed period of time allowed, the employer could be responsible to purchase and pay for a life insurance policy for the employee. > If an employer wishes to continue benefits for a prescribed period of time after an employee termination, permission must be obtained to do so from the insurance company. If the employer does not do so, the employer could be responsible for any
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EMPLOYER LIABILITY
and all claims from the employee and/or dependents. > Advising the insurance company of salary changes when the plan coverage is salary based on for life and long-term disability is important. Failure to do so could result in an employer, in the event of a claim, paying the difference between what the employee should have had and what is indicated for the employee on the policy. As an example, in the case of Card Estate v John A. Robertson Mechanical Contractors, the employer was found liable for the breach of its duty of care for failing to bring the terms of benefit policies to the attention of the employee. In this case the employee was fired without being told that his life insurance had been terminated or that he had 31 days to convert the group policy to an individual policy. The court held the employer liable when the employee died during the notice period without having had an opportunity to convert his life insurance coverage.
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The following is a sample of the contractual as well as statutory responsibilities in respect to group pension plans:
Employers are required to provide accurate and timely information about their pension entitlements and assisting the employee in obtaining these benefits.
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> Employers are required to provide accurate and timely information about their pension entitlements and assisting the employee in obtaining these benefits. > The administrator of a pension plan must notify members of any proposed amendment to the pension plan that would result in a reduction of pension benefits. > Administering and investing pension plan funds. > Issuing regular filings, statements to employees. > Making payment of contributions as required under the plan. > Maintaining excellent member communication and education.
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Pension plans are treated differently than employee benefit plans because of the statutory responsibilities associated with these plans. Failure to abide by these provisions could result in heavy fines by not only the employer but the directors of the corporation would also be jointly and severally or solidarily liable. Employers can mitigate these liabilities by taking measures to ensure they are: > Providing explanations and not giving advice. > Issuing written communication to employees that is clear and is easily understood. > Providing regular updates about changes, product enhancements and industry trends Finally, the Supreme Court of Canada has classified the employer/employee relationship as one of the most important relationships in the employee’s life, but one in which the employer’s bargaining power generally far exceeds that of the employee. In cSCM.org
that context, the court has held that employers owe a duty of care to their employees.
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Pension plans are treated differently than employee benefit plans because of the statutory responsibilities associated with these plans.
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BFL CANADA Consulting Services Inc. conduct benefit audits, which not only take into account an audit of the plan design, claims experience and funding arrangements but more importantly audits the administration of the plan. BFL CANADA Consulting Services Inc. also conducts pension audits which include a review of the contributions, investments, contracts and employee education – all of this is done to ensure compliance. Even with due diligence in addressing responsibilities, mistakes can occur, which can be detrimental to your business. To further protect and secure your business against liabilities, BFL CANADA’s Commercial Division can provide innovative solutions that will best fit your business needs and address the challenges you may face. “My own club has benefited greatly as a client, saving money on premiums, while offering enhanced services to our employees.” Bill Morari, CSCM President 2010-2011 and General Manager/ COO of The National Club in Toronto. FALL 2011 | club manager quarterly
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Greening the Clubhouse
Creating positive change that will resonate with today’s members
+ Facilities Management +
By JC Scott
With challenges to the club and resort world coming from uncertain economics and declining membership wait-lists, why would any manager consider green renovations that may add even more cost? Such action would require bold and forward thinking, but it could very well be worth the investment.
Resources and energy cost money, sometimes big money, and many managers are finding that by modernizing their facilities with respect to water consumption, energy use and waste reduction, all of which are cornerstones of the green movement, they actually save significant dollars over reasonable lifecycle payback periods. Because energy costs vary across the country and different facilities consume different amounts, a cost benefit study by consultants or engineers is the first step.
In today’s market, making your brand unique and the subject of public attention is key to success. From competition for business to social media, from bottom line economics to simple position in the marketplace, paying attention to the calendar and the changing trends it represents is important or maybe even critical for club and resort decision makers. The club world, and to a certain extent the resort world, benefit from tradition, whereby values and standards are both expected and maintained. But this is a fast-changing world and the blazer-and-tie set of yesteryear are rapidly being forgotten (except for those musty photos on the hallway walls) by the next generation who may not even wear ties to work let alone for recreation. So how does all this social review relate to “Greening the Clubhouse?” It is simply because the cost of not keeping up with change at some point becomes greater than the cost required to renovate and implement positive change. Let’s look at three simple topics:
- Consumption of resources and energy - Public relations and media - Member/guest satisfaction 18
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Olympic View Golf Club in Victoria, B.C. is 100 percent water self-sufficient despite the signature large waterfall on the 17th hole.
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In today’s market, making your brand unique and the subject of public attention is key to success.
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Touchless faucets, xeriscaping the grounds that can be removed from irrigation systems, and efficient plumbing fixtures can all contribute significantly to reduced water use. Regional costs of water will vary and the ever increasing circles of government controlled resource management, reduction of water use is now mandated by many regional and civic governments. LED lights and other high-efficiency light sources combined with heat-pumps, energy efficient furnaces, solar shading and natural convection based ventilation systems can greatly reduce electrical and utility based HVAC (heating, ventilation and air conditioning) energy bills. Drive up to your clubhouse in an evening and look at the light coming out of the windows; are these energy-efficient luminaires? Consider the heat leaving the building through the roof, walls and windows and then imagine reducing all that energy loss and consumption by up to 40 percent which is well within possibility. What I am describing is often invisible but significant change. Energy reduction is an important green change. The eco-mantra of Reduce, Reuse, Recycle starts with reduction cscm.org
because of the three, reducing consumption of materials and resources can make the greatest difference. Consultants and utilities are providing more insightful studies and even providing grants in many regions to encourage improved energy consumption. Check your local utility provider for information on this topic. In British Columbia, for example, BC Hydro has been mandated by the provincial government to reduce use so they are being generous to businesses that follow green energy renovations. The Ontario Energy Board is being proactive about energy use and gas consumption. Clubs and resorts are social by nature so public relations are central to their success. Sustainable initiatives and ecological actions can garner immense goodwill – perhaps through good press or by word of mouth or through well publicized events and focused advertising and promo tions. Many clubs today feature local food and beverage products thereby attracting attention from the larger and growing “local” movement and making their brand unique and regionally integrated in the process. Media today are looking for local stories, local business and local advertising dollars and a clever manager with a good social media network and media links can work these trends to the advantage of their club. With declining wait-lists at even the most sought-after clubs and challenges for some clubs and resorts to fill their rosters and facilities, few topics can outweigh user satisfaction in importance. Green is here to stay. The generations joining clubs today and selecting resorts to patronize grew up with environmental awareness; they simply expect it. By accepting this fact, and by embracing environmental policies and cSCM.org
showing members the benefits of new ways of acting, managers can create a new green pathway to their success. Where would a prospective new member rather join? Would they prefer an older facility where obvious energy consumption, water waste, chemical fertilizers and even toxic sprays are used (nominally to save members’ money)? Or would they select a renovated new clubhouse with efficient plumbing fixtures and low energy lights, combined with a family friendly Audubon golf course management policy?
Salmon ladder at Bear Mountain Resort in Victoria, B.C.
These two opposite examples are extreme in their difference, but the point remains that even a subtle shift in either direction toward old and inefficient or new and responsibly efficient may be the tipping point for a discretionary dollar no matter how prestigious a club manager may feel their club is. To a new member there are many factors which could affect their decision to join. For existing members it can affect their annual use of their facility. In my experience the clubs where members are happy to spend their time with friends and family, where they feel healthy and safe, these are the clubs that generate more revenue than other clubs which prescribe a monthly spending quota. The popular clubs outperform those that need to tell their people what to do. Often, the busiest clubs are those that stay current with their renovations, that pay attention to the currency of their menus and those that are fastidious about their ongoing maintenance. Green your clubhouse for success. JC Scott is a hospitality planner and clubhouse designer. FALL 2011 | club manager quarterly
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When can an NPO earn a Surplus? What the Canada Revenue Agency requires today
+ External & Governmental Influences +
By Susan M. Manwaring and Andrew Valentine
Over the past two years, the Canada Revenue Agency has placed an increased focus on the tax exemption granted to nonprofit organizations (NPOs). Entities that meet the criteria set out in paragraph 149(1) (l) of the Income Tax Act – which requires essentially that an organization be organized and operated for exclusively non-profit purposes and that no income be payable to the members – enjoy an general exemption from income tax. Many private golf or other sports clubs in Canada rely on this exemption and are structured and operated to comply with the requirements of the tax exemption provided by this provision. Historically, NPOs have not been the focus of CRA’s enforcement activities in the nonprofit sector (registered charities have tended to receive far more scrutiny). More recently, however, CRA has initiated an audit initiative targeting a wide range of NPOs, including a number of private golf or other recreational type clubs. At the same time, CR A has released several technical interpretations that have taken an increasingly narrow view of when an organization will qualify as taxexempt under paragraph 149(1) (l). All this has forced NPOs in Canada generally, and private clubs specifically, to re-evaluate their activities and determine how best to address the increasing risk of CRA compliance action.
Traditional interpretation of paragraph 149(1)(l) Paragraph 149(1)(l) provides, in full, that the following is exempt from tax: A club, society or association that, in the opinion of the Minister, was not a charity within the meaning assigned by subsection 149.1(1) and that was organized and operated exclusively for social welfare, civic improvement, pleasure or recreation or for any other purpose except profit, no part of the income of which was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder
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thereof, unless the proprietor, member or shareholder was a club, society or association the primary purpose and function of which was the promotion of amateur athletics in Canada. Thus, an organization will only qualify for the tax exemption under paragraph 149(1)(l) if, among other things, it is organized and operated exclusively for “any other purpose except profit.” To the extent that a profit purpose can be discerned from the objects or activities of the organization, it will not qualify for the NPO tax exemption.
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NPOs in Canada generally, and private clubs specifically, have been forced to re-evaluate their activities and determine how best to address the increasing risk of CRA compliance action.
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Traditionally, both CRA and the courts in Canada have recognized that NPOs will sometimes earn net surpluses from their operations, and that this will not necessarily indicate that the organization is operating for a profit purpose. In its general policy statement on the NPO tax exemption, released in 2001, CRA specifically stated that NPOs can earn an excess of income over expenditures. It stated that NPOs could earn surpluses realized from a business or trade directly attributable to, or connected with, pursuing the non-profit goals and activities of an organization, or from returns generated by investments. Furthermore, courts have shown a willingness to accept organizations as meeting the requirements in paragraph 149(1)(l) despite earning surpluses or carrying on activities with some commercial characteristics. Provided that the profits are incidental and the organization is not using its tax exempt status as a “cloak” to avoid tax on a commercial enterprise, it will generally be found to qualify. Operating on a cost recovery basis in the medium to long term has also been held to support an organization’s status as an NPO, notwithstanding surpluses earned in particular years.
New restrictive interpretation? The central issue that has recently come to the fore is the extent to which NPOs can
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earn a surplus from their activities while still meeting the test for having exclusively nonprofit purposes. Beginning with a technical interpretation released publicly in late 2009, statements from CRA over the past two years have tended to take an increasingly strict and literal interpretation of the requirement in paragraph 149(1)(l) that an NPO must be organized and operated “exclusively… for any other purpose except profit”. CRA has essentially taken the position that to the extent that an organization budgets for a surplus of income over expenditures in a given year, it will generally be found to be operating for a profit purpose. While CRA acknowledges that the earning of incidental and unanticipated profits will not put an NPO offside paragraph 149(1)(l), any planned or intended surpluses (subject to a few exceptions) will be viewed as an intention to make a profit. This includes:
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The central issue that has recently come to the fore is the extent to which NPOs can earn a surplus from their activities while still meeting the test for having exclusively nonprofit purposes.
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> Earning income (other than through member fees) for the purpose of funding future capital projects and/or establishing reserves. > Earning budgeted surpluses from the rental of a spare condominium unit for the purpose of reducing member fees. >
Where an organization receives and invests a cash donation with the intention of earning income to fund its core non-profit activities.
Furthermore, in some of the audit letters received by clubs that have been audited, CRA has challenged the surpluses earned from use of the facilities by non-members for weddings or other similar events. In more recent technical interpretations, CRA has acknowledged that certain types of
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When can an NPO earn a Surplus?
profitable activities may be acceptable for an NPO, including running a canteen at an amateur hockey rink or a cafeteria at a non-profit youth hostel, or charging admission above direct cost for a children’s concert (assuming the organization was organized for the purpose of promoting youth participation in music). In each case, CRA stated the profitable activities are directly in support of not-forprofit objectives – i.e., providing appropriate facilities, promoting participation in music – and will generally be incidental in amount. However, CRA confirmed that an activity undertaken for the purpose of earning profits (as opposed to furthering non-profit purposes) will not be acceptable, even if all profits are destined to support the NPO’s non-profit purposes.
Implications These developments have cast into doubt many of the long-standing bases upon which NPOs in Canada have operated. Many NPOs in Canada have worked to develop practices to ensure financial stability and viability over the long term. This has included embarking
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Many NPOs in Canada have worked to develop practices to ensure financial stability and viability over the long term.
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on capital projects and operating to avoid operating deficits. The view has historically been that financial stability is essential for any entity, whether for-profit or non-profit, and that budgeting for occasional modest surpluses to support reasonable operating reserves is appropriate. This view, however, has been called into question and along with it the ability of organizations to maintain adequate reserves to ensure financial stability. Some NPOs also carry on activities that earn a surplus when accounted for on a discrete basis, notwithstanding that the organization may operate on an overall cost recovery basis. Certain of CRA’s recent policies have suggested that this alone is sufficient to cause an organization to be offside paragraph 149(1)(l). This interpretation is particularly restrictive, and there is some question whether it is supported by the wording of paragraph 149(1)(l) or whether a court would uphold it. However, the risk exists that CRA might challenge such an activity, which will force many organizations to decide between taking a very conservative
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NPOs in Canada are being forced to re-think their operating models, and to do so amidst a cloud of considerable uncertainty.
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approach to their operations (which may make the organization less effective in fulfilling its non-profit purpose) and facing potential CRA challenge. More clarity from CRA on this point is essential to provide NPOs with some certainty for planning purposes.
an organization for unpaid tax for at least three and potentially an unlimited number of prior years. For this reason, pro-active compliance is of the utmost importance.
Conclusion NPOs in Canada are being forced to rethink their operating models, and to do so amidst a cloud of considerable uncertainty. Private clubs are among the group that need to take note and consider what if any changes in how they operated should be implemented. Our hope is that CRA will step back from some of the more restrictive positions it has taken recently, out of recognition of both established case law as well as the practical realities within which NPOs operate. We also hope that CRA will proceed to update its published policies on the NPO exemption to provide greater certainty and clarification on its current position. Until then, NPOs are well-advised to seek advice and take the steps that are available to them to ensure compliance with CRA’s new approach.
In our view, many of the positions taken by CRA in its recent technical interpretations are excessively literal and out-of-step with how paragraph 149(1)(l) has historically been interpreted by the courts and by NPOs in Canada. Nonetheless, in light of these new statements, NPOs must reconsider the basis upon which they operate and how they can take account of these developments without unduly disrupting the basis upon which they operate. To the extent that it is possible for NPOs to move towards and maintain a cost-recovery operating model (again, without excessive disruption to their activities), they are well-advised to do so. This can be accomplished, among other things, by fee and expenditure adjustments as well as more involved corporate restructurings. The need to ensure compliance is particularly acute in light of CRA’s recent audit initiative reviewing the compliance of a broad range of NPOs. This audit project is expected to last until the end of 2012. While the initiative is ongoing, NPOS in Canada face a higher risk of audit by CRA and potential consequences for any non-compliance identified. CRA’s approach where it identifies instances of non-compliance has thus far been limited to issuing “education letters” which identify areas of non-compliance and set out necessary remedial steps. We are unaware of any assessments against private clubs or any other NPOs to date. We do however expect that CRA will likely again review the compliance of organizations that have received these letters within the next couple of years. This suggests that organizations will be given the opportunity to restructure so as to address any identified concerns. However, this cannot be guaranteed and the Income Tax Act allows CRA to reassess cSCM.org
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The need to ensure compliance is particularly acute in light of CRA’s recent audit initiative reviewing the compliance of a broad range of NPOs.
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Susan Manwaring is a partner at Miller Thomson LLP and works with charities and non-profit organizations dealing with all aspects of their affairs. Susan is recognized as a leading practitioner in the area of charities, not-for-profit, trusts and estates law by both Lexpert and Best Lawyers (Canada). She is the 2010 winner of the Ontario Bar Association’s AMS John Hodgson Award and was also named a Friend of the Canadian Association of Gift Planners in 2010. Andrew Valentine is a charity lawyer with Miller Thomson LLP and focuses on providing advice to charities and non-profit organizations on issues vital to their operation and success, including gift planning, incorporation and registration, ongoing compliance matters, and audits. He has assisted in representing clients in several litigation matters involving charity law issues, including the Federal Court of Appeal and the Supreme Court of Canada. He has authored and co-authored numerous articles in the area of charities law. FALL 2011 | club manager quarterly
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Believe
CSCM National Food & Beverage Conference Richmond, BC • February 18 - 21, 2012
February 18-21, 2012 Radisson Vancouver Airport Hotel Richmond, BC
Believe! Building on the overwhelming success in Niagara-on-the-Lake, this Conference will also have a strong education program
Here’s a sampling of some of the sessions that are being planned…
that will make you more
Kevin MacDonald will make you Believe that you can handle those difficult conversations…
knowledgeable and confident in your food & beverage and your management skills.
Dr. Jerry Teplitz will make you Believe that you can take your management skills to a higher level… Theresa Syer will make you Believe that you can create extraordinary “WOW” member experiences… Renowned Chef Chuck Currie will make you Believe that things are a-changing and tell you what the current trends are as seen by chefs. Believe in yourself and those around you and wonderful things can happen.
Details will be available at the National Conference in Montreal and on the CSCM web site in October.
Plan to be there
Believe us, it’s going to be another amazing conference!
Waste Not
how to save money through composting By Danielle Knight
weeds and nutrient losses to surface and groundwater. Further specific benefits of topdressing turf with compost can be found at www.agresourceinc.com.
New technology can green the greens (while saving green) The Clear Lake Golf Course in Manitoba’s Riding Mountain National Park is turning their waste to compost in order to fertilize the Club’s fairways. Their composting program has resulted in an 80 percent reduction in landfill costs.
Nearly 95 percent of waste generated in food and beverage operations could be recycled or composted. Many clubs may already be separating out cardboard, plastic containers and mixed paper. In the restaurant industry, this is required of them for the GreenTable certification. However, the biggest savings might be found in the area most dining operations are missing: food waste.
Not only can food waste be turned into fertilizer. The waste from portable toilets and turf trimmings can also be used to make fertilizer within 24 hours and on-site. Composting on-site means 40 to 60 percent of your trash is eliminated and turned into a resource. GreenGood Canada unveiled its new electric-assist composting technology in 2010. It can be used in a variety of situations including commercial kitchens, supermarkets, manufacturing facilities and of course golf courses.
Food waste is big money Toronto, which manages to compost 75 percent of its food waste, still spends nearly $10 million a year getting rid of food waste that isn’t composted, according to the David Suzuki Foundation. Some estimate that composting kitchen scraps will save Vancouver almost $40 per ton compared with hauling it as garbage. It is these kinds of savings that are leading communities like Metro Vancouver to require mandatory food waste composting. This would bring Vancouver more in-line with many Asian and European countries that have separated food waste for years out of necessity – when space is at a premium, the value of composting food waste increases. For golf clubs this presents an added bonus. Not only can you save money by diverting food waste from the landfill, but there are also significant savings by creating your own organic fertilizer; using the compost to topdress the greens. This improves turf quality by providing nutrients, improving turf appearance and the soil structure, and reducing water consumption,
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As clubs strive to reduce their energy consumption, a strategy that is being overlooked is how managers are dealing with food waste.
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+ Food & Beverage Management + Facilities Management +
You can’t go anywhere these days without hearing about the power of green. Home builders are constructing greener homes, local and organic food is a major movement today and everyone claims to support recycling. And yet, as clubs strive to reduce their energy consumption, a strategy that is being overlooked is how managers are dealing with food waste.
“The composter digests our food waste overnight and is ready by morning for the day’s waste production. The supplied charcoal filters ensure there are no odours and our garbage area is much cleaner. Now we have a great green story to tell and we are saving money on waste disposal at the same time,” says Peter Gaskill, President of Pacific Arbour Communities in Burnaby, B.C. The fertilizer created from his in-house compost facility is used on landscaping around the building. He was so impressed with the product that he bought a home-size model for his house as well.
Overcoming barriers to save money At one restaurant/bakery in Vancouver, owners Lorne Tyczenski and Stephen
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WASTE NOT
Greenham have recently implemented a company-wide green initiative. Their ecoconscious team have seamlessly turned a commitment to “go green” into habit. The team participated in a two-month training program separating the daily food waste into eight different disposal streams including soft plastics, hard plastics, cardboard, mixed paper, styrofoam, metal, wood and organics. Combined with the use of on-site composting technology, they have achieved a 90 to 95 percent reduction in food waste. “The results have been a significant savings in removal costs, as well as an unexpected team building opportunity,” Lorne says.
Once a club sees how much can be saved in garbage hauling fees and/or in buying commercial fertilizers or compost, the only thing missing is a green champion. Barriers, such as educating employees or sorting waste, are easily overcome in the face of financial savings and good leadership. Organic programs that have corporate and GM mandates are more likely to save bigger dollars. Zero Waste is attainable but the structure needs to be put in place and champions engaged to “drive” the program forward. Danielle Knight is the President of Encore Environmental Services Inc.
Putting it all together!
Buz Club Manager An integrated suite of programs for the club and golf course industry
Member Manager
Tee Time
Accounting
Tournament
Point of Sale
Event Registration
WebCommunicator
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People Focused • Business Minded buzsoftware.com
club 1 manager quarterly | FALL 2011 26 AD.indd quarter page
5/25/2010 1:16:16 PM
888•284•9015
cscm.org
ADVERTORIAL
Club Managers Turn to Competitive Bidding for Instant F&B Cost Savings! According to Jay DiPietro, CCM, CEO of Boca West Country Club, “Purchasing starts the whole food and beverage operation. If you don’t buy right, nothing else is right.” Getting the best possible prices for the quality and service required is the first step in this process.
Bill Schwartz, CEO System Concepts, Inc.
Consider the potential savings if all approved F&B vendors submitted competitive bids for everything the club buys. Industry estimates place the reduction in pricing at an average of 4-5%! But collecting these bids manually and comparing them item-by-item would be too labor-intense.
With the FOOD-TRAK System, bid sheets can be automatically created and exported to Excel. Every vendor can easily fill out the form and e-mail it back. And with our latest innovation, the Vendor Portal, vendors get their own secure web page where they can enter their bids directly into your hosted FOOD-TRAK System! Prices are compared and purchase orders are created automatically using the best pricing. It is possible to achieve 100% bidding with almost no additional club labor using this approach. Food costs are instantly improved! “We use our FOOD-TRAK system to produce bid sheets for our vendors which are automatically converted to Excel spreadsheets and e-mailed to the vendors,” says Shawn Ganderton, from the Summit Golf and Country Club in the Toronto area. “They complete the spreadsheet, indicate the active dates for their bid, and e-mail them back to us. We import the bid sheets into our system, and it compares the bids automatically during the purchase order creation process. We actually spend very little time dealing with bids, but have the ability to bid our entire inventory out.” NEW! QUIK-START Option: No hardware or software – Fully implemented and saving money in less than 30 days!
Many top club managers are using SCI’s FOOD-TRAK system to help control their F&B costs. With SCI’s new QUIK-START approach, implementation costs are minimized and you’re up and running in 30 days – in many cases at prices that don’t require board approval! For more information, contact SCI’s club specialists at 800-553-2438 or via email at ftsales@foodtrak.com.
Lower Food and Labor Costs Immediately by Getting Vendors to do Your Bidding! NEW! Vendor Bidding Module
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Wireless handheld scanner for data collection
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Watch the video to learn how to save - www.foodtrak.com/bid Contact us so we can assist you (800) 553-2438 cSCM.org
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From wine to water systems, linens to landscape architects… Introducing the one-stop shopping resource for managers in Canada’s $800 million club industry.
The Canadian Society of Club Managers’ Online Directory of Suppliers
Club managers across Canada, now have a powerful new online purchasing management tool at their fingertips whenever they need it. CSCM’s online directory of suppliers contains more than 10,000 records of companies who supplied goods or services to clubs in Canada last year. Invite your supplier to sign up right now and have their corporate listing prominently displayed today. Follow the quick and easy steps below to invite your supplier:
For further information, please visit www.cscm.org under About Us.
CSCM is pleased to offer our second Canadian Busines s Management Institute course in partnership with the Ted Rogers School of Hospitality and Tourism Management at Ryerson University. The course has been organized with the assistance of the CMAA and is recognized by CMAA towards qualification for the Certified Club Manager (CCM) designation. BMI I, a 40-hour, five-day intense session, is designed for managers interested in exploring the basic elements of their profession in a comprehensive manner. It consists of 90-minute education sessions throughout the week. Successful completion of the course and awarding of credits is dependent upon passing a multiple choice exam. The course content includes the following: • Employment Law
• Food & Beverage Cost Controls
• Fitness Operations
• Management and Delegation
• Introduction to Accounting
• Wine Appreciation and Knowledge
• Effective Member Communications • Marketing in Private Clubs • Time Management
• Career Development
• Swimming Pool Management
For registration and further details, please www.cscm.org under Professional Development/BMI Courses.
Tea Time
Discover how this beverage can create a new revenue stream By Shabnam Weber
Since anything we call tea comes from the same plant, and it is the plant that contains the antioxidants, vitamins and minerals, any beverage that contains the tea leaf from the tea plant will be full of these benefits. What are the differences amongst the five classifications of tea? In a nutshell:
Consumers are more knowledgeable about the benefits of certain teas and ready to experiment with the hundreds of new flavours and blends. Demand is rising, but are clubs taking advantage of this appetite for a wider variety of healthy and exotic teas?
> White tea is the least processed of the tea types – the leaves are laid out for a gentle drying process. The f lavours of white tea are soft and delicate with a hint of natural sweetness.
With so many types – and once we start blending and mixing healthy fruits and herbs in with our tea – the flavour profiles are endless. There truly is something out there for everyone.
> Green teas are either steamed or panfired and dried creating the grassy vegetative flavours we love in these teas. > Oolongs are partially oxidized teas. Oxidation is simply the natural chemical reaction that occurs when the enzymes of the tea leaf are exposed to air. So Oolongs lie in between green and black. Their flavours can range from toasty to light sweet and floral.
How does a food and beverage manager incorporate tea, specifically tea well done, into his or her operation? It’s not as complicated as you might imagine. First, let’s look at the definition of tea. We tend to classify everything that we infuse in hot water as “tea.” If however, you divide the tea world into two separate camps, the confusion is cleared up significantly. Tea comes from a plant called camellia sinensis. The differences in types of tea arise from where it is grown, how it is plucked and what is done to the leaf. By exposing the leaves to varying degrees of evaporation, twisting, oxidization and heat, the five tea classifications – white, green, oolong, black and pu-ehr are created. In order for something to be called tea, it should contain the tea leaf from the tea plant. In the second camp are things that we infuse in water that impart flavour, but don’t contain the tea leaves. These we call “tisane.” They would include flowers, herbs and spices.
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+ Food & Beverage Management +
Once you get past Or ange Pekoe, English Breakfast and Green, there is a fascinating and complex world of teas that consumers have been discovering in the past few years. Simply look at the shelves of tea at a health food store or a well-stocked grocery store and you will see what I mean.
> Black teas are full oxidized teas. They are full bodied and rich in flavor and are teas we tend to know most commonly in the west, such as Orange Pekoe and English Breakfast.
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By underserving or ignoring this beverage market, restaurants, clubs, hotels are literally leaving money on the table.
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> Pu-her tea comes from the Yunnan province in China and is allowed to age while wet piled. This creates a layer of good mould on the tea, creating an earthy rich aroma and flavour. A successful program requires a good tea list – a good selection of teas with descriptions printed as a menu. People love trying new things, but are reluctant to do so if they don’t have descriptions. Incorporate good teaware – anything but those horrible stainless steel teapots. Data shows that regular tea drinkers will not order tea when they know it’s going to be served
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TEA TIME
badly. By underserving or ignoring this beverage market, restaurants, clubs, hotels are literally leaving money on the table.
There are billions of tea drinkers around the world, so, introduce your members to this amazing beverage and infuse a new revenue stream into your operation.
Another way to add to the experience would be to do a tea pairing with the dessert menu. This is an excellent way of showing your members the diversity of tea. So what are the “tea trends”? The truth is that I hate to use the word “trend” when discussing teas. Trend implies that it’s something passing; yet tea is the most consumed beverage in the world next to tap water and has been around for over 5,000 years. What is happening, however, is that
consumers are discovering that there is a whole wide world of tea out there. It’s no longer what granny did. It’s not stuffy or old fashioned. Tea drinking is quite the opposite in fact. It is hip and healthy; its history and tradition is rich and beautiful and it’s here to stay.
Shabnam Weber is Co-owner of The Tea Emporium, which is a specialty company in Toronto with four locations and more on their way. They wholesale to top end restaurants, hotels and spas and are leaders in the tea industry for setting standards on quality and service. Shabnam is a tea educator and a vital part of the Tea Sommelier program from the Tea Association of Canada. She is also a board member of the Tea Association of Canada – the only retailer to hold such a seat.
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