Page 15 - GBC summer 2016

Hole #3, Glen Abbey
Photo: Kevan Ashworth (ClubLink)
Edge Caravaggio, former VP of Operations at ClubLink and now CEO of ECS Inc, summarizes these scenarios. “Whatever the model, a multi-course-operator can often provide a great exit strategy for small business owners. Since the current industry dynamics are demanding more professional management practices, which is typically what these MCO will implement, the times are right for additional growth in this model.
“I also think that an effective MCO can create improved value for the consumer while still producing a solid return to its respective in- vestor stakeholders. Ultimately this can also generate a resurgence and growth in the golfer population.”
“It should also be noted,” points out Caravaggio, “that the independent golf course owner still has some advantages, such as the option to be a hands-on operator wearing several management hats, the value of their sweat equity going directly to the bottom line, and the perception of a more personal style of family service. But, the MCO advantages are still well worth considering.
“Labour cost alone, particularly at member owned and voluntary board run clubs can usually be drastically reduced. Supplier purchases get driven down to the
lowest upfront cost and further enhanced by volume rebates that the individual golf course can’t normally access.”
Reto Steiner, independent Owner of Woodside Golf Course near Calgary, adds, “I would say that in smaller markets the individual owner has a better chance of con- necting with their customer base. Although the MCO knows what and how to deliver, they are some- times missing the ‘why’ advantage that we provide.
“In our case, that is to produce a better product at fair margins and provide an exceptional experience. But, there is no question that the MCO has economies of scale that can work for you.”
VALuAbLe benChmArKIng DAtA
Internal benchmarking is another valuable management tool available to multi-course operators. Across a portfolio of centrally managed golf courses, templates for performance standards can be established and easily monitored, leading to better staff management and implemen- tation of proven best-practices.
“Most golf courses have not had access to as much sophisticated benchmarking data as the MCO can offer,” states Johnston. “We are now providing more of that service as a component of our consulting contracts.”
Brent Miller, ClubLink’s VP Corporate Operations & Member Services, adds, “As an industry, we are making progress with recognizing the importance of capturing customerdata,maintainingaccurate operating results, and ultimately sharing it for the greater good.
“However, management com- panies and multi-course-owners often have a leg-up in this area given the direct and immediate access to data from multiple assets. Add purchasing power, central- ized back of house efficiencies, and the perspectives of their experienced people, engaging with a manage- ment company can represent a compelling option for an independent owner.”
The National Golf Course Owners Association Canada (NGCOA Canada) also provides benchmark- ing support services to its member- ship of 1300 golf courses to support their need for such data.
For example, Rounds Played Reports & Weather Reporting, Compensation & Benefits Report, and other Operations Surveys, such as the new Retail Benchmark Reports in affiliation with Golf Datatech, are programs that owners and operators can use to garner benchmarking data.
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