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Last Update :6/21/2012

Food & Beverage Operations Are a Key to Success - WGP Blog

Western Golf Properties - Corporate Blog

Golf Management Recognizes Food & Beverage is No Longer an Amenity to Golf

 

It has long been the ideology of Western Golf Properties, a leading golf management company, to abandon the industry-old philosophy that food & beverage is an amenity to the golf experience. Conversely, we view and position each of our managed facilities at the cutting edge of this constantly changing and highly lucrative profit center, always tracking guest and product trends. We specialize in positioning our facilities by developing comprehensive, award-winning culinary and beverage strategies that deliver significant return on investment.

Recognizing that the number of golfers has stagnated, the golf industry has been on a quest to grow the game through various programs and initiatives. In spite of these efforts, golfers and rounds have continued to decline causing greater concern for golf owners and operators whose myopic strategy has historically gauged success on the number of rounds sold. What needs to happen for golf courses to succeed is a paradigm shift. Success is not measured by the number of golfers or total rounds, but by the dollar amount on the bottom line. Owners and operators need to consider the total facility, profit center by profit center, and then drive each to maximize revenue. The most overlooked profit center at clubs across the country, and the one capable of delivering substantial returns, is without question the F&B operation. It is vital to understand that in spite of your best efforts, not everyone will become a golfer or play more golf, but everyone must eat. Clubs would be well advised to focus on their F&B operation and target their product and services to compete with local dining facilities, the facts bear this out!

As stated above, Western Golf Properties conducts frequent comparisons within the industry.

We are proud to report that for 2011, our managed food & beverage operations have beaten the projections as forecasted by PKF in their Clubs in Town and Country Report.

When we evaluate the cumulative operation of a facility, we have found increasing rates of success by viewing each of our departments as stand-alone operations. By doing this, we are afforded the opportunity to not only benchmark ourselves within the golf industry with the likes of the National Golf Foundation, but we also have the ability to make proper industry comparisons with leaders in the Food and Beverage industry such as PKF and the National Restaurant Association.

The NGF (National Golf Foundation) has reported the following results in their 2010-2020 analysis;

  • The number of golfers to grow by about three million between now and 2020. This is a growth rate of about 1%, similar to the forecasted growth rate of the general U.S. population.

  • Most of our forecasted growth comes from expected increases in the size of high income/high participation rate clusters.

  • While the growth of low participation clusters is also expected to be high, the effect on overall golf participation is subdued because of the low participation rates.

Conversely, The National Restaurant Association’s report paints quite a different picture for the next decade;

  • The restaurant industry is expected to add 1.3 million jobs over the next decade, with employment reaching 14.1 million by 2021

  • The restaurant industry is projected to employ 12.8 million people in 2011, or nearly 10 percent of the U.S. workforce.

  • Every dollar spent by consumers in restaurants generates an additional $2.05 spent in our nation’s economy.

  • Restaurant-industry sales are projected to total $604 billion in 2011 and equal 4 percent of the U.S. gross domestic product. This also reflects an average of 5.2% growth from 2009.

  • Catering will increase by a minimum of 6% year over year.

  • The overall economic impact of the restaurant industry is expected to exceed $1.7 trillion in 2011.

  • Every additional million dollars in restaurant sales generates an additional 34 jobs for the economy.

  • 93% of eating-and-drinking place businesses have fewer than 50 employees.

  • Average unit sales in 2008 were $862,000 at full service restaurants and $737,000 at quick service restaurants.

To learn more about how Western Golf Properties can improve your Food and Beverage Operations, please call 678.641.0532.

About the Author:
Frank Denniston, President of Western Hospitality Group

All food and beverage operations at each Western Golf Properties managed property including concepts, menu collaboration, management and the leadership of field operators are facilitated through Denniston. His expertise is engaged in all phases of restaurant and catering operations with major responsibilities including conceptualization, organization, operations analysis and improvements. In addition to his leadership and operations, Denniston is also responsible for the solicitation,selection and procurement of economically viable national accounts with food and beverage and hospitality vendors to provide substantial savings to our Owners while not compromising quality and service to our guests.

Denniston heads up Western Golf Procurement and Western Hospitality Group; divisions of Western Golf Properties.



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