RubinBrown Country Club Stats 2010

Golf Operations Total rounds of golf declined by approximately 5 percent for the second year in a row due to declining membership levels and less special event activity, with the annual average number of rounds per 18 hole equivalents decreasing from 17,300 as reported last year to approximately 16,400 for the most recent period. Average golf course maintenance expenses declined very modestly as compared to the previous year. The average golf course maintenance costs on a per hole basis declined from $51,500 to approximately $49,300. Pro Shop Operations Gross profit margins on merchandise continued to slide nearly another percentage point from the previous year to an average of 16.3 percent. Food and Beverage Operations Clubs experienced declining food and beverage revenues as compared to previous year. Ala carte revenues were down approximately 5 percent and banquet/event activities were down an average of 10 percent. Average food profit margins remained steady at roughly 57 percent. Profit margins for beverages dropped approximately 3/4ths of a percentage point to 65.7 percent. Declining food and beverage revenues drove the total food and beverage labor and fringe benefits as a percentage of total food and beverage revenues upward to an average of 74 percent from the prior year of approximately 70 percent. Clubs reported an average net loss (after all direct costs and labor) from food and beverage operations of approximately $165,000 for years ending between September 2009 and March 2010. This average loss increased approximately 35 percent over the prior reporting periods.

Moving Forward In order for the club marketplace to rebound, substantial help is needed from the economy along with a continued focus by club management and boards in: • Actively and continuously rebuilding membership at all levels • Building a family atmosphere for the next generation • 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 Thanks to the many area club controllers and general managers who participated 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.

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