Chapter 6 Food and Beverage

Abstract

Many club managers would agree that comparing commercial food and beverage operations to private clubs is like comparing apples to oranges. Clubs are uniquely challenged with multiple dining options (much like a hotel or resort) and in the ability to forecast demand, because many members may not make reservations. Additionally, many club food and beverage operations lose money because of high food and labor costs (more will be said about this later). Finally, club dining is reserved for members only, so clubs are serving a limited market. There are other differences, but these are some of the key ones, all of which present unique challenges. According to research by ClubBenchmarking, 75% of food and beverage departments in clubs lose money. This is not necessarily a good or a bad thing – just a function of how food and beverage in clubs is managed. This chapter will explain how they are managed, how they are similar to (and different from) restaurants, and why so many of them lose money or show a deficit. We will revisit these issues but, first, let’s confirm how important food and beverage is to a club’s livelihood.