The "Big-foot" Clubhouse!
THAT 22,000 SQUARE FOOT CLUBHOUSE!
KAHN'S CLUBHOUSE RULE: Every square foot over 4,000 loses money!
A vast clubhouse is fine for a private country club with mega-money initiation fees, substantial annual dues, clubhouse minimums, shoe shines, etc., but in the real golf business the clubhouse should be a functional 'Player Service Center' (term originated by GOLFMAK).
GOLFMAK oversees a 27-hole golf course hosting 75,000 to 80,000 rounds. The clubhouse, approximately 4,000 square feet of 'business' area, includes grillroom, pro shop, offices, plus washrooms and storage closets. The building is extremely attractive, yet functional, easy to maintain and administer. In fact, at Oak Ford Golf Club, our concession 'opportunities' are profitable. The benefit of a manageable clubhouse saves personnel and energy. An operator can concentrate more on marketing and serving customers well.
Here's a couple of items you might review to see how positively or negatively your clubhouse may be affecting financial activities (assumes you're in the daily fee or semi private golf course business to earn a profit):
Anytime you see the food and beverage revenue above 15% of total revenue, you may be getting too deeply into the restaurant-catering business. ("Hey! Wait a minute! You just said I should be making money from my concessions! "I know I did. But let me finish.") We believe that when 'clubhouse activity' runs above 15% of overall revenue, a disproportionate demand is placed on human resources and the operator's energy. Most golf course operators will tell you that food and beverage demands a disproportionate amount of energy and physical resources to manage. Try to stay in the golf business - ("But that doesn't mean you give up profits from your concessions!")
Here's a brief formula (guideline):
18-hole Golf Course, 4,000 sq. ft. Clubhouse, including 1,500 sq. ft. Grill room.
Golf course revenue (includes power carts) - 80%,
Pro shop merchandise - 05%,
Food/Beverage - 15%
Total - 100%
Every square foot of clubhouse that lays dormant is a financial loss. However, in our view it's a shame to see golf courses hosting wedding and banquets just to pay the bills for an oversized clubhouse.
