A Comparison of Impacts From Two Economic Downturns on Food and Beverage Revenues in U.S. Private Clubs

Abstract

This study measured the degree of change in food and beverage revenue levels in private clubs in the United States during two economic downturns in 2003 and 2010. Additionally, the study investigated whether the 2010 economic downturn was more severe on clubs than the 2003 economic downturn. Specifically, the study explored if there were any differences in net food and beverage revenues, member dining covers, member dining revenues, private party covers, and private parties at private clubs in 2003 and in 2010. A questionnaire was sent via email to one thousand private club managers that were members of the Club Managers Association of American. The majority of respondents managed country clubs, and member-owned clubs from different regions of the United States. An overall response rate of 50% was achieved for the study. Of the two economic downturns studied in 2003 and 2010, most clubs experienced greater losses in their overall food and beverage operations in 2010 than 2003. Clubs reported a similar number of member dining covers and member dining food and beverage revenues during both economic downturns, however, the majority of clubs experienced a significant decline in both private party covers and private party food and beverage revenues in 2010 when compared to 2003. The results of this study suggest that private clubs were more negatively impacted by the severe economic conditions of 2010 as compared to the economic conditions of 2003, especially with their private party banquet business.