Page 36 - Winter 2018 english

5. Revenue per membership by department, source and membership type. Average guest rate (achieved) compared to the peak guest rate, typically averages between 65% and 75%.
6. Average number of guest rounds per membership, typically ranges from 5 to 12.
7. Average tournament patron rates, typically ranging from 80% to 90% of the peak guest rate.
8. Rounds per membership, typically ranges from 35 to 48
9. Utilization of tee times by membership category.
10. Golf Cart Utilization: golf cart usage as a percentage of total rounds,
which typically ranges from 35% to 50% depending on walkability of the golf course.
Cost of Sales
Similar to public golf courses, cost of sales as a percentage of revenues are some of the more readily available metrics. Typically, food and beverage cost of sales run higher for private clubs, between 35% and 42% of food and beverage revenue, while merchandise cost of sales typically average 75% of merchandise revenue.
Labour and Other Expenses
From an expense perspective, most private clubs have excellent controls in place to keep expenses in line with the approved budget.
1. Labour expense ratios as a percentage of total expenses are usually slightly higher at private clubs ranging from 55% to 62%.
2. Full-time equivalents and headcounts are also typically higher at private clubs, averaging 48.3 FTEs and 101.9 employees.
All other KPIs related to expenses are generally based on a unit of measure of as a percentage of revenue. For most operations, controlling expenses is important; however, for private clubs this may not be as important as meeting member satisfaction. De ning what is important needs to be a ‘ rst step’ for each operator.
HOW DO YOU LEVERAGE KPIs?
A requirement for effectively using benchmark standards to improve your speci c circumstances is the application of experience to compare and contrast your results with that of the standard, investigate discrepancies and develop focused improvement plans.
Most owners and operators want to be as ef cient as possible without lowering their expected standard of excellence. The use of benchmarks allows operators to both measure performance and adjust operating procedures to improve performance and meet the goals of
the club.
Although benchmarks are typically used to measure historical
performance, they can be used to make alterations on a timely basis if reviewed appropriately and to provide direction for adjustments moving forward.
For example, certain utilization KPIs can be evaluated daily, weekly or monthly. For a public course operator, it is essential that their infor- mation system be ‘real time’, so KPIs can be calculated, and if needed, communication to the general public adjusted in a timely manner (yield
management). The use of KPIs and benchmarks need to be part of the toolkit for management and the owner.
Furthermore, more sophisticated operators have set up speci c dashboards with differing KPIs for different levels of management and/or ownership. The dash- boards are produced on a periodic basis, either daily, weekly or monthly depending on the audience.
This information is then used to adjust operations on a timely basis or adjust marketing and communications to patrons in order to enhance utilization of the facility.
From a management perspec- tive, KPIs and utilization statistics can be used to align labour costs with activity. In addition, some operators use KPIs to evaluate staff performance and determine bonus calculations.
The most important are KPIs that allow for timely revenue enhancement and service improve- ments that improve patron/mem- ber enjoyment. If you are not using KPIs, you are at a disadvan- tage and are missing a key tool in your management toolbelt.
STAY COMPETITIVE
In summary, benchmarking stan- dards help each operator remain competitive within their market segment. KPIs can also become a motivating in uence for staff and management. Simply tracking your results compared to budget is not good enough. Operators need more dynamic information which allow for the development and implementation of timely tactical solutions. Industry bench- marks are key to a successful operation – without them your operation is at risk.
Golf Business Canada
36
Golf Business Canada