Page 32 - GBC spring 2016

2015 POSTMORTEM
Complete an end of year interview with all staff. Their input is invaluable.Overtheyears,wehave learned that the best suggestions for improving operations come from staff who are working each day and interacting with customers. Staff appreciate being asked, and are usually eager to share their ideas.
Next, evaluate the ‘KPI’s’ (Key Performance Indicators) for each segment of the business. For example, determine the overall average green fee rate (total revenue from green fees, member fees divided by total rounds).
The benchmark for this calcul- ation should be 70% to 80% of the average posted peak rate for weekends/weekdays; i.e., if your weekday peak rate is $48 and your weekend peak rate is $52, the average peak rate is $50 and your average green fee rate should be between $35 and $40 per round.
In addition to the above calculation, the average green fee rate should be calculated for member rounds, tournaments rounds, third party discounted rounds, and general public rounds. Next, determine cart utilization as a percentage of total rounds. The benchmark for non-mandatory courses ranges from 30% to 40%. Naturally, the topography of the golf course will impact this range.
Determine the cart revenue by type of round (i.e., member round, tournament round, third party discounted round and general public round).
Evaluate the utilization of the driving range. This is measured based upon a range capacity analysis. For each operator this is different; however, typically capacity is the number of tee decks available per hour per day based upon an average per bucket price. The key is to measure the driving range business as a separate operation.
You will also need to determine food and beverage benchmarks. The typical range in costing is:
Food and beverage cost: 32% to 34% Labour cost: 37% to 45%
Other cost: 6% to 8%
Profit margin: 15% to 20%
If possible, measure food and beverage KPI’s for general public, tournaments,andbanquets(nogolf). In addition, measure historical food and beverage revenue on a per round basis.
“Evaluate the utilization of the driving range. This
is measured based upon a range capacity analysis. For each operator this is different; however, typically capacity is the number of tee decks available per hour per day based upon an average per bucket price. The key is to measure the driving range business as a separate operation.”
For golf merchandise, the gross margin benchmark is 23% to 27%. It will be important to track the historical merchandise revenue per round. Further, it is essential that year-end inventory be measured as a percentage of sales. The best practice is to have year-end inventory below 10% of sales (range 10% to 15%).
DETERMINE THE 2016 BUSINESS PLAN
Once the revenue and rounds analysis data is completed, then the facility’s dynamic pricing and yield management opportunity can be plotted in order to determinethe2016businessplan.
This process is very detailed in that all 2015 rounds are mapped by day, by hours, by month. If possible, it would be good to map both 2014 and 2015. This mapping process will indicate the tee times which are consistently your ‘worst’ tee times.
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Golf Business Canada