RubinBrown Private Club Stats 2015

Executive Summary

General Industry Economic Update In continuing with the tradition of the past couple of years, our 2015 statistics indicate a gradual economic recovery with clubs experiencing an average net gain of 12 regular members and 8 total members (excluding nonresidents). Although clubs have experienced a net gain in membership, the membership base for many clubs remains below the levels necessary to maintain a “balanced budget” without dues increases, operating assessments and/or cost reductions. Membership dues rates increased by an average of 3.2%, and, in 40% of clubs surveyed, this was accompanied by an operating assessment to fund deficits incurred during the current or previous years. Golf Operations Substantial rainfall grabbed the headlines during the previous golf season, while this year (summer of 2014) was an ideal year for golf. Average total rounds of golf increased nearly 8% to 17,500 rounds (18-hole equivalents) played annually. The average golf course maintenance costs on a per hole basis increased from $53,700 to approximately $55,400, with the primary increases related to additional cost for water and labor.

Even though membership levels have improved over the past several years, clubs are continuing to focus on building a family atmosphere for the next generation to enhance and retain membership levels. Club management and boards must continue to focus on: • Actively and continuously rebuilding membership at all levels • Increasing membership utilization of services in all areas • Aggressively controlling costs and expenses • Managing cash flow for debt service, capital improvements and operations • Retaining quality employees and providing excellent service • Complying with increasingly complex government and tax regulations • Adequate planning for significant capital projects We sincerely appreciate the many area club controllers and general managers who took time to participate in our annual survey. We encourage club managers, controllers, board members and others to use these statistics as one of many tools in evaluating their club’s operations. Please keep in mind the wide range in size and diversity in club operations throughout the St. Louis metropolitan area when comparing your financial and operating results to averages contained herein.

Pro Shop Operations Gross profit margins on merchandise increased approximately two percentage points over the previous year at an average of 22.8%.

Food and Beverage Operations Competition from various dining venues continues to put pressure on club menu pricing. Food and beverage revenues remained comparable to the previous year, as did food profit margins averaging 56.1%, while beverage profit margins increased approximately two percentage points to 66.3%. Clubs reported an average net loss (after all direct costs and labor) from food and beverage operations of approximately $92,000.

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