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to 65% of weather adjusted avail- able tee times and average revenue per round as a percentage of peak revenue per round between 70% and 80%.
Other helpful metrics include utilization and yield statistics mea- sured on a per round basis for other ancillary revenue sources such as carts, driving range, food and bev- erage, and merchandise. Resort properties will also measure green fee revenue per room, after adjust- ing for occupancy sales; and total rounds played by guests of the re- sort versus non-guest play.
Cost of Sales
The cost of sales metrics are gener- ally more straightforward and easy to come by, with costs more consis- tently recorded and tracked. Gen- erally, food and beverage cost of sales as a percentage of food and beverage revenue average between 26% and 36%, while merchandise cost of sales as a percentage of mer- chandise revenue average between 65% and 75%, depending on the mix of hard and soft goods sold.
Labour and Other Expenses
Labour expenses are the largest cat- egory of expenses for golf courses, generally ranging from 52% to 58% of total expenses.
Expense metrics which go beyond simple dollars and cents, are gener- ally harder to come by due to the wide variety of operating models, departmental structures, and local market conditions for labour and other products and services. That said, typical labour metrics include the following:
1. Labour related costs as a percentage of revenues and costs. For instance, food and beverage labour expense as a percentage of food and bev- erage revenue generally averages between 38% and 50%.
2. Full-time equivalents by depart- ment. According to the most recent NGCOA Canada Compensation
& Bene ts Report, the average full-time equivalent head count at public and semi-private facili- ties in Canada is 18.2.
3. Actual key employee payroll and bene t costs. Public and semi- private facilities employ an aver- age of 52 employees, with signif- icant variances in the mix of staff (permanent, seasonal, full-time, and part-time) by region and type of facility – you are encouraged to consult the report for a detailed breakdown of compensation by key position.
Other operating expenses are typi- cally evaluated against a unit of measure. For example, greens ex- pense per maintainable acre and clubhouse expense per square foot. Advertising expense is measured as a percentage of total revenue, as are other variable expenses such as bank charges and credit card fees. From a capital expenditure stand- point, public and semi-private golf courses should on average spend between 3% and 5% of total revenue on maintaining existing capital items.
PRIVATE MEMBER CLUBS
Private clubs sell and market more than just golf, they promote a life- style and social hub. Instinctually, not-for-pro t private clubs focus on breakeven operations, member satisfaction and maintaining assets.
In order for a private club to be successful, all aspects of the opera- tion must meet members’ expecta- tions, and as a result, measuring utilization and service levels of all club facilities is quite important. In addition, most people do not want to belong to a club that appears run down; as such, an important KPI is expected capital maintenance costs and the funding of those costs through entrance and capital main- tenance fees. Here are a few examples of private club KPIs:
Revenue
The key focus from a revenue per- spective is annual dues, maintaining a stable membership count, guest fees, power cart revenue, and food and beverage revenue. An example of important revenue KPIs for a private club are:
1. Full Member Equivalent: total annual dues divided by a full member’s annual due.
2. Satisfaction, participation and utilization: critical statistics to measure and benchmark.
3. Natural attrition rate from exist- ing membership: typically average between 5% and 8% of total memberships.
4. Membership Conversion Rate from Inquiries: generally average between 8% and 12% of quali ed inquiries.
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Golf Business Canada