Post on 14-Apr-2018
7/29/2019 Chapter 8 Club Management
1/24
2007, Educational Institute
Chapter 8Club Management
Hospitality Today: An Introduction
Sixth Edition
(103TXT or 103CIN)
7/29/2019 Chapter 8 Club Management
2/24
2007, Educational Institute 1
Competencies for
Club Management
1. Summarize background information about clubs; list
and describe types of city clubs; and describe
country, yacht, fraternal, and military clubs.2. Compare equity clubs with corporate or developer
clubs; outline club organization and the duties of,
personal attributes of, and advancement opportunitiesfor a club manager; list and describe typical revenue
sources for clubs; and give examples of club
expenses and controls.
7/29/2019 Chapter 8 Club Management
3/24
2007, Educational Institute 2
Types of Clubs
City clubs
Athletic
Dining
Professional
SocialUniversity
Country clubs
Other clubsYacht
Fraternal
Military
7/29/2019 Chapter 8 Club Management
4/24
2007, Educational Institute 3
Athletic clubs
Athletic clubs are as varied as the industry itself.
In every athletic club you may found squash
courts, running tracks and fitness equipment Some athletic clubs have dining facilities.
7/29/2019 Chapter 8 Club Management
5/24
2007, Educational Institute 4
Dining clubs
Many dining clubs are open only for lunch butthere are cases when they are open for the publicin the evening.
Some dining clubs located in office buildingsremain open for cocktails after work.
Few of these clubs have cater private functions.
7/29/2019 Chapter 8 Club Management
6/24
2007, Educational Institute 5
Professional clubs
Are dining and social clubs for people in the same
profession.
There are professional clubs for lawyers,journalists even for artists (painters, sculptors,
musicians)
7/29/2019 Chapter 8 Club Management
7/24 2007, Educational Institute 6
Social clubs
Members of a social club may have no affiliation
except that they enjoy being in each others
company. The purpose of this type of club is leisure,
recreation and camaraderie.
7/29/2019 Chapter 8 Club Management
8/24 2007, Educational Institute 7
University clubs
Are private clubs for university graduates or
individual otherwise affiliated with a university.
Some university clubs have guestrooms, diningfacilities, meeting and banquet rooms, indoor or
outdoor swimming pool and sometimes they even
have a gymnasium.
7/29/2019 Chapter 8 Club Management
9/24 2007, Educational Institute 8
Country clubs
Are recreational and social facilities for
individuals and families who live nearby and they
have special childrens facilities and a largecatering business.
They are usually located in suburban and rural
areas due to the need of land.
In addition to a clubhouse with one or more dining
rooms and function rooms, most country clubs
have golf course, swimming pool and tennis courts
7/29/2019 Chapter 8 Club Management
10/24 2007, Educational Institute 9
Yacht clubs
Are located near large bodies of water and their
main purpose is to provide marinas and other
boating facilities for boat owners. While many of this clubs have tennis courts,
swimming pools, dining rooms and lounges, other
provide only the bare necessities of dock space,
fuel and boating supplies.
7/29/2019 Chapter 8 Club Management
11/24 2007, Educational Institute 10
Fraternal clubs
Fraternal organizations own or rent entire
buildings or floors within a building.
Some offer food and beverage services, overnightaccommodations and rooms for meeting and
recreation.
These clubs require professional managers.
7/29/2019 Chapter 8 Club Management
12/24 2007, Educational Institute 11
Military clubs
The armed services operate officers clubs and
noncommissioned officers clubs and most have
clubhouses with dining and function activities. Some have lodging facilities, recreational facilities
and social programs similar to civilian private
clubs and resorts.
7/29/2019 Chapter 8 Club Management
13/24 2007, Educational Institute 12
Club ownership
A club can be owned by some of its members and
such clubs are called equity clubs.
Or a club can be owned by a company that sellsmemberships in the club and they are named
corporate or developer clubs.
7/29/2019 Chapter 8 Club Management
14/24 2007, Educational Institute 13
Equity clubs
Are generally nonprofit and the member are either
founder-members or other members who pay a
one-time initiation fee and annual dues. To receive a tax exemption, an equity club must
be formed only for pleasure and recreation and
must not discriminate on the basis of sex, race or
religion against anyone who wishes to become amembership.
7/29/2019 Chapter 8 Club Management
15/24
2007, Educational Institute 14
Corporate or developer club
Are clubs who operate for profit and are owned
by individual or corporations and the person who
is interested in becoming a member purchase amembership not a share in that club.
Some of these clubs are built exclusively for the
use of employees of particular companies and are
owned and operated by this companies.
7/29/2019 Chapter 8 Club Management
16/24
2007, Educational Institute 15
Club managers personal qualities
Effectiveness in interpersonal relations
Dedication to the welfare of the club
Integrity
A strong sense of the organization
Creativity and vision
Intelligence and professionalism
Ability to communicate well Strong leadership capabilities.
Industry experience
7/29/2019 Chapter 8 Club Management
17/24
2007, Educational Institute 16
Revenue Sources for Clubs
Membership dues
Initiation fees
Assessments
Sports activities fees
Food and beverage sales
Other sources
7/29/2019 Chapter 8 Club Management
18/24
2007, Educational Institute 17
Membership dues
Are the cost to a member for the exclusivity of
the club and they subsidize all of the clubs
operating costs and fixed charges. There are three types of memberships:
- resident
- suburban
- nonresident
7/29/2019 Chapter 8 Club Management
19/24
2007, Educational Institute 18
Initiation fees
Most clubs charge members an initiation fee
which is nonrefundable.
Initiations fees typically range from 500$ to10.000$, although a few clubs charge 100.000$ or
more
7/29/2019 Chapter 8 Club Management
20/24
2007, Educational Institute 19
Assessments
Are sometimes imposed to on members instead of
increasing dues and may cover operational
shortfalls. Instead of assessments, many clubs prefer to
impose minimum spending requirements, usually
on food and beverage.
If a member doesnt spend a specified amount of
money on a monthly or annual basis, a bill is sent
for the difference.
7/29/2019 Chapter 8 Club Management
21/24
2007, Educational Institute 20
Sports activities fees
They account 17% of total country clubs revenues.
In some country clubs, fees are charged for
playing tennis or golf or for renting the properequipment.
Members at most country clubs pay fees to use thehealth spa, the volleyball courts or the squash
courts.
7/29/2019 Chapter 8 Club Management
22/24
2007, Educational Institute 21
Food and beverage sales
After the dues income, the sales of food and
beverages are the major source of revenue in each
club. A clubs dining facilities must compete with the
restaurant in the surrounding area, in terms of
quality and value.
Club members hold their club to higher standards
of food quality and service than public restaurants.
7/29/2019 Chapter 8 Club Management
23/24
2007, Educational Institute 22
Other sources of revenue
Most clubs charge visitors fees for nonmember
who are guests of members and use rooms and
buy food and beverages. Country clubs have pro shops operated by the club
or by a concessionaire, that sell sports equipment,
apparel and a broad range of gift items.
7/29/2019 Chapter 8 Club Management
24/24
2007 Educational Institute 23
Sources of Club Expenses
Payroll
Operating supplies
Cost of food
Cost of beverages
Real estate taxes and insurance