Controlling your Beverage costs CMAA Article

Just as with a food service operation, establishing a theoretical cost system for beverage items is the single best way to control costs and provide data (apart from the local market) regarding pricing and portioning options.  Where applicable, standard mixed drink recipes should be established that help control the beverage product quality, consistency and quantity that is served.  Wines by the glass and keg beer standard pours can be controlled by something as simple as glass size. Read the rest of this entry »

Making Nonmember Functions More Profitable – 8/20/2012

There are a number of items to consider when hosting nonmember events at a private club such as:

  • Financial benefits.
  • Impact on member utilization.
  • Income tax status/limitations.
  • Public accommodation status.

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Hours of Operation Impact Profit

Many clubs struggle just to break even in their food and beverage departments whether or not a club’s food and beverage operation is “profitable” can depend on factors such as:

  • Nonmember utilization.
  • Member utilization.
  • Amount of function or public space.
  • Hours of operation.

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Server Pay, Gratuity vs. Rate

Some private club survey data suggest that food and beverage operations are almost evenly divided on whether they have an hourly rate or gratuity/tip system as a basis for the pay of their service personnel.  The answer to the question of which system is most appropriate for your club depends on a variety of factors such as the nature of your club operation as well as the tax and wage regulations in the state in which your club is located.  It can be useful to examine the general pro and con issues and then apply a cost-benefit analysis approach to your club. Read the rest of this entry »

Controlling Food Cost is Key

Our clients with significant food service operations often ask us to benchmark their food costs against available club industry data. While such comparisons can provide some insight, more useful information can be obtained by implementing or updating a simple menu costing procedure.

Hours of Operation Impact Profit

It is a natural inclination of club managers to try to accommodate their memberships; after all from a member’s perspective what is the point of paying dues? However, clubhouse hours of operation that attempt to meet all member demand can significantly impact cost and profitability, particularly for a club’s food and beverage department.