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Whitepaper: Data-Driven Perspective on Club Food & Beverage

Misconceptions related to food and beverage profit or loss are the private club industry’s most dangerous and pervasive issue. Too many clubs find themselves stuck in the F&B Trap which we define as rigid adherence to the belief that a club should make a profit in F&B (or “lose less money”) and that a club is healthier if it makes a profit in F&B than if it shows a deficit in F&B. In this whitepaper, we present data showing the exact opposite is true, with Monterey Peninsula Country Club (MPCC) in Pebble Beach, CA, as our case in point.

The goal is to improve the industry's understanding of a key financial concept; clubs make the CHOICE to cover operating costs from margin on non-dues revenue based on member usage with high-use members covering a higher burden of operating the club, or to cover costs through membership dues revenue which spreads the burden of operating the club more equally among all members.



Topics: Food and Beverage, Club Business Model, Finance and Operations, whitepapers, Club Governance