Chapter 8 Club Management

7/29/2019 Chapter 8 Club Management

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2007, Educational Institute

Chapter 8Club Management

Hospitality Today: An Introduction

Sixth Edition

(103TXT or 103CIN)


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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.


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Types of Clubs

City clubs

Athletic

Dining

Professional

SocialUniversity

Country clubs

Other clubsYacht

Fraternal

Military


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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.


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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.


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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)


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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.



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.



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



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.



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.



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.



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.



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.


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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.


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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


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Revenue Sources for Clubs

Membership dues

Initiation fees

Assessments

Sports activities fees

Food and beverage sales

Other sources


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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


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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


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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.


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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.


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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.


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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.


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2007 Educational Institute 23

Sources of Club Expenses

Payroll

Operating supplies

Cost of food

Cost of beverages

Real estate taxes and insurance

Chapter 8 Club Management

Documents

Transcript of Chapter 8 Club Management