Banquets can bring big F&B profits—but also big headaches if not properly controlled. Smart marketing, strategic timing and added flexibility can help properties achieve a more manageable—and profitable—balance between their a la carte and catering business.
Club managers have traditionally viewed 60/40 as the ideal split between banquets and a la carte dining, because of banquets’ higher profitability. But as the economy’s sluggish recovery has had a lasting impact on catering volume—both in terms of the frequency of events, and their size—at the same time clubs have continued to elevate their a la carte experiences, properties are starting to see their F&B balance move closer toward a 50/50 ratio between banquets and member/guest dining.
That’s not necessarily a bad thing, for a number of reasons. Striking a more even balance between the two sides can lead to more streamlined and manageable F&B operations—and more satisfied members and guests, who often find themselves shoved to the side by properties clamoring to host as many big events as possible.
SUMMING IT UP
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And through renewed marketing efforts, facility updates and greater attention to being flexible with event space and menus, properties’ banquet business can be reshaped to be even more profitable, by staying within the “sweet spot” of events that don’t require costly additional labor or equipment, curtail other amenities and services, or create other headaches for a club and its staff.
Here’s a closer look at how three properties with very different profiles have effectively reshaped their banquet a la carte mix in step with these trends:
Boatloads of Business
Despite its snowbelt home, The Cleveland Yachting Club (CYC), in the suburb of Rocky River, Ohio, is home to 300 sail and powerboats. CYC offers plenty of year-round activities, including fine dining, social events, youth activities, swimming, picnicking and just plain relaxation, all with the backdrop of Cleveland’s spectacular Lake Erie views.
With 800 total members, CYC has a robust food-and-beverage operation led by Clubhouse Manager Marc Dallas and Executive Chef Michael Valentino, who was featured in the “Chef to Chef” interview in the October 2012 issue of C&RB (“Charting an Exciting New Course”). The cuisine at CYC is all-American, food costs run around 42% and menus change seasonally.
Inside the clubhouse, CYC has two dedicated dining spaces, one upstairs and one down. A kitchen is tied to each space as well, though the upstairs kitchen is considerably more sizable.
Banquet Profile: The Cleveland Yachting Club (Rocky River, Ohio)
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While CYC lacks dedicated banquet space, the club still manages to do over half a million annually in catering. “We relocate our a la carte business to our downstairs dining space when we have large functions upstairs,” says Dallas.
CYC’s Club Room, West Room and Snug Harbor—all located upstairs—provide views of the harbor and offer a variety of capacity options, from small events and meetings to weddings, conferences and large seminars that seat up to 240. Members can reserve each venue individually, or reserve combinations of areas, depending on the event’s capacity needs. “Most of our larger events average around 180 guests,” says Dallas.
Downstairs, a more casual space called the Center Isle, which can accommodate up to 100 guests, was recently renovated to give it a more modern feel.
“We have some unique challenges, given our facility,” says Dallas, who has been with the club 25 years, after starting there as a busboy. “But our members are used to accommodating events, as they realize that banquets bring in a significant portion of profits for the club.”
CYC hasn’t increased dues in over five years, and the club continues to have zero debt. That has allowed it to plan strategic updates and renovations to keep the facility in top shape. Now that the Center Isle renovation is complete, next up on the club’s redo list is the upstairs dining space and the downstairs kitchen.
“We’re fortunate to have two kitchens, but when a la carte dining is downstairs, the footprint of the kitchen handicaps us,” says Dallas. “We’re looking at knocking down a wall to expand the square footage in the next year or so.”
Both kitchens have the same types of equipment, but upstairs has significantly more line space, making it better suited for larger functions and especially plated meals, even as catering trends move away from that service style.
“We’ve seen a shift in the type of foodservice our members are requesting for events, for an atmosphere that’s much more social, with more grazing stations, high-top tables, and small plates,” Dallas says.
Big-City Banquets
Club events need a hook; something to get members and guests excited. This can be offered through champagne service at the valet station, or intricate ice sculptures. But at The City Club Dallas, members and guests are “wowed” by uninterrupted 360° views of the Texas city.
Located high atop the Bank of America Building—the tallest downtown—The City Club can accommodate everything from intimate lunches and mid-sized corporate meetings to 500-person weddings. “If you can dream up the event, we can make it happen,” says Vicki Welch, Director of Events, who is also a certified wedding planner.
On average, The City Club executes 450 events annually, with weddings being extremely popular, given the club’s combination of dynamic accommodations and an in-house consultant.
Banquet Profile: The City Club Dallas (Dallas, Texas)
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“Being a city club, we do a lot of mid-week corporate meetings, in addition to the more traditional club events like birthday parties and weddings,” says Welch, who has been with the club for eight years. “We’re seeing a lot more international types of events, too, as our membership skews in that direction.”
Still, a la carte currently outweighs banquets at The City Club—but not by much. “Member dining is very consistent and growing,” says Welch. “About three years ago, downtown Dallas went through a dining renaissance; new restaurants were opening all the time.”
That pumped new life into the club’s dining operation, to make it even more contemporary. Today, its a la carte menus are primarily New American, but Executive Chef Sigi Schafner pushes the daily envelope, also offering international specials that, when well-received, find their way to the regular menu.
“Like any club, a segment of our membership relies on the long-standing club favorites,” says Welch. “At the same time, we have an emerging segment of members looking for something trendier.”
This spills over into banquets, allowing Welch and Chef Schafner to infuse menus with increased creativity and whimsy. “We’ve seen per-person banquet budgets increase over the past few years, giving us the flexibility to make events even more unique,” Welch says.
Welch has also worked closely with Google to raise the club’s ranking in search engines. “As a private club, our bylaws prohibit us from advertising,” she notes. “But by adding specific keywords like ‘Dallas events’ or ‘Dallas wedding’—or even ‘Super Bowl’ when it was here—we’ve put our operation in front of more prospective business.”
Room for Improvement
After working at a number of high-end clubs on the Eastern seaboard, Danny Dunne came to Old South Country Club in Lothian, Md., to be its Clubhouse Manager in September 2012. Looking for a new challenge, he was attracted to the potential of Old South, which came on the scene in the competitive Washington, D.C. market in 1990.
Banquet Profile: Old South Country Club (Lothian, Md.)
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With the help of the club’s Executive Chef, Fernando Montesinos, who came to the club this past January, the two have been hard at work revitalizing the club’s F&B operation, including restructuring its banquet business.
“We’re known for weddings,” says Dunne, noting that the club’s banquet facility is booked every Saturday from April through October. “But while we do a phenomenal job with those events, we’d like to see more variety in the scope and size of the occasions we handle.”
To better manage the events already on its books, while also bringing in more business, Old South is looking to hire a dedicated Director of Catering, who will also help to cultivate a more prominent social media presence for the club.
“Last year, the club generated about a half a million in banquet business,” says Dunne. “And while a la carte outpaced banquets, our goal is to grow our catering arm to be more evenly matched with—if not exceed—member dining. I believe we need a dedicated staff member to help us do that.”
Dunne is also working to reorganize the profitability structure of catered events, so the numbers are more consistent from event to event. “I have a spreadsheet I’ve used for years that allows me to input all of our costs, including labor, supplies, operating expenses and room rentals,” he says. “Once we input all of our costs, we can add the appropriate markups to ensure profitability.”
Thanks to the spreadsheet, the club now collects at least 18% profit on each event. “We have a more streamlined system that will support us as we grow,” says Dunne. “Ultimately, I’d like to see our banquet business mirror our a la carte business, so total F&B contributes at least 35% of the bottom line, instead of 25%.”
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