POA finances improve, ‘overall business slightly better than budget’ Print E-mail

Quarterly Report indicates 'Spending is on track,
with no major surprise needs'

Sconti
View of Big Canoe's Lake Sconti.

POA Administrative Notes
By Roger Klask, CMCA
General Manager
roger klask
Roger Klask
CMCA
POA finances continue to be sound, with overall business is slightly better than budget through the first half of the year. Operations areas are solid and Tennis and Lakes and Marina are a couple of bright spots in the Amenities. Golf operates in the black, but is the Amenity area with the largest loss vs. budget. Early year weather effects still linger and the shortfall against the overly aggressive revenue budget will continue. Food and Beverage operated at a profit in June. While one point does not indicate a trend, it does reflect efforts of Yolanda, Tulio and staff to control costs.

The Quarterly Report to the Board on Capital Spending shows spending on track, with no major surprise needs.

To Feed or Not to Feed?
There is a longstanding POA prohibition on Property Owner feeding of wildlife other than birds. However, bird feeding in the summer may be unwise since the food attracts animals that can be a nuisance or even dangerous. We encourage removal of bird feeders when spring arrives and the big critters begin to stir. Some people choose to have bird feeders out during the day but bring them in at night and when they are away.  The bottom line is that bird feeders are permitted and we can avoid a summer time prohibition by minimizing the invitation of unwanted animals.

Food and Beverage
The Food and Beverage analysis by MMV, Inc. has been completed. Immediate follow up items include hiring a Food and Beverage Director and upgrading some key operational items—like food inventory and loss control —that influence the cost of labor and food. A resource has been employed part time to assist in getting these changes under way.

After the new F&B manager is on board, probably late September or early October, early priorities will be menus and pricing, customer incentives, event sales increases and further development of management metrics for labor and food cost improvement. Further isolation of F&B operations costs from general Property Owner services provided at the various outlets will help in defining and managing the costs truly attributable to the food service function. The food, beverage and labor cost control combined with enhanced event revenue should be significant in reducing the annual subsidy. Quality assurance through inspection, secret shopping and a regular feedback program are also needed.

Several items under consideration are of historical interest to Property Owners:

  • Contracting the operation to an outside entity—MMV recommends against this approach. The commitment to service tends to be stronger when managed from within. The net financials may or may not improve.
  • Monthly minimums- This is always an option. The preferred approach that is emerging in the industry is a member loyalty reward in the form of a frequent guest program. Think frequent flyer without the hassle.
  • Automatic Gratuity for a la carte dining- This may have outlived its usefulness and may now be counter productive. MMV recommends a trial period where the conventional voluntary gratuity approach is instituted.
  • Food consistency- While food quality and menu variety got good grades, consistency in preparation and presentation is needed. Returning customers expect their favorites to routinely be the same.
  • Children’s program- An important customer service that is missing.

Facility considerations include dining room and kitchen modifications and completing at least the basic covering of the Veranda to incorporate it into the Black Bear Pub operation. The operation could be more efficient if the main dining room and pub are close. The large dishwashing space in the kitchen could be condensed to facilitate other kitchen functions and some equipment rearrangement would improve efficiency.

The bottom line: Some basics are immediately being established and the hiring of the F&B Director will trigger additional changes. The August 21, town hall meeting will feature a presentation on the F&B study by Mr. John Boozer of MMV.