Covid-19 Update from Bobby Jones Links
Insights from Bobby Jones Links
Yes, F&B Can Be Profitable
Steve Willy

Food and beverage is the hardest department to manage at a club.  Period. End of Story.

Higher staff turnover is the nature of this business. Couple that with how easily cost of sales and labor can get out of control, and you have a recipe of big losses in this area. Nonetheless, Bobby Jones Links makes money in F&B at every one of our clubs.  

First, acceptable labor costs should be 30% to 42% of sales, depending whether it is a snack bar, grill, or fine dining. Second, cost of sales should be 28% to 40% of revenue, again, depending on the type of operation. Add supplies and other expenses and a professionally managed F&B department will make at least a 10% profit, sometimes 20%.

At some of our clubs, we have taken F&B from losing hundreds of thousands per year to making six figures in profit.

How do you do this?

1.    Track labor and cost of sales daily.

2.    Forecast revenues and staff accordingly.

3.    Limit a la carte and fine dining as much as possible and replace it with themed events and parties. Ironically, this is what members desire today anyway.

4.    Take inventory regularly and as often as needed until food costs get under control.

5.    Check and correct invoices.

6.    Weigh meat and fish upon receipt

7.    Use portion control and recipe cards for every menu item.

8.    Lock all storage areas, particularly those containing alcohol.

These are just a few of the best practices we employ in F&B. They are all outlined in Carpe Diem, our company operations manual twenty years in the making.

F&B is not for the faint at heart. Let us handle it for you.

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and Attentive

The principals of Bobby Jones Links own the company - we are not driven by investor expectations and pressures. Our balance sheet is strong.

As a result, we don’t leverage our operational leadership across too many clubs. And unlike many companies in our business, we don’t require long term management agreements with large breakup fees. If you like what we do, you’ll keep us. For more than two decades our clients have renewed our management services more than any other company.