Chapter 8 Club Management

Hospitality Today: An Introduction Sixth Edition (103TXT or 103CIN)

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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 opportunities for 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 Social University Country clubs

Other clubs Yacht 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 but there are cases when they are open for the public in the evening. Some dining clubs located in office buildings remain 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.

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University clubs
Are private clubs for university graduates or individual otherwise affiliated with a university. Some university clubs have guestrooms, dining facilities, meeting and banquet rooms, indoor or outdoor swimming pool and sometimes they even have a gymnasium.

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Country clubs
Are recreational and social facilities for individuals and families who live nearby and they have special childrens facilities and a large catering 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
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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.

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Fraternal clubs
Fraternal organizations own or rent entire buildings or floors within a building. Some offer food and beverage services, overnight accommodations and rooms for meeting and recreation. These clubs require professional managers.

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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.

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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 sells memberships in the club and they are named corporate or developer clubs.

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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 a membership.

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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 a membership 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$ to 10.000$, although a few clubs charge 100.000$ 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 proper equipment. Members at most country clubs pay fees to use the health 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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Sources of Club Expenses

Payroll
Operating supplies

Cost of food
Cost of beverages

Real estate taxes and insurance

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