Black Rock - Golf Course
May 2017 Industry Report

The tale of two chicken restaurants

Chick-fil-A generated more revenue per restaurant than any other fast-food chain in the U.S. The chain's average annual sales per restaurant has reached nearly $4 million, or more than $13,000/day. A figure even more impressive considering they are closed on Sundays.

 

Meanwhile, the average KFC has $1 million in annual food sales.

 

Customer service is key to Chick-fil-A's success. Superior customer service drives higher sales per unit, contributing to the chain's ability to generate greater revenue than chains such as KFC, Pizza Hut, and Domino's with more than twice as many locations.

 

Customers are willing to spend more if they feel the perceived value warrants the cost. Consider a survey to your members evaluating the perceived cost of dues, food, and guest fees. You might be surprised by the answers.

 

Special offer #1: Member trip to Bermuda

This month, Bermuda hosts America’s Cup.

 

With six courses, the island has one of the highest concentration of golf per square mile in the world. Port Royal, host of the PGA Grand Slam of Golf for several years, has 13 holes with ocean views.

 

Bermuda Tourism has a special offer for golf professionals. You fly and stay free with seven paid guests.

 

Packages for your members start at $599/person. For more information, please contact Bermuda golf concierge Andrew Brooks at abrooks@bermudatourism.com.

 

Bad news/good news

Golf isn’t the only sport suffering a decline in participation. According to the latest report from the Sports and Fitness Industry Association, baseball, basketball, touch and tackle football, soccer, and slow-pitch softball have all seen decreases.

 

First, the bad news. According to the National Golf Foundation, the number of Americans who played golf on a real golf course (not an evening at Top Golf) fell 1.2% last year. At 23.8 million golfers, the number is the lowest reported since the euphoria of the Tiger Woods debut.

 

Now the good news. Our market, considered “committed golfer” grew to 11.3 million. This is the first increase in year-over-year participation of committed golfers in five years.

 

The macro environment has created a slight tailwind for the private club industry. The continuing slow decline in the number of open private clubs, high consumer confidence, all-time records on the Dow and NASDAQ, and two million baby boomers retiring this year are all positives. One note of caution. President Trump’s new tax plan will impact high net worth individuals. Some will benefit, some will pay more. Until the dust settles, some may fence sit on big decisions.

 

Living in the social media world

Executive Golfer’s vetted social media following is approaching 10,000 – with a mix of “key influencers” including private club members, club champions, directors of golf, golf writers, Tour players, and industry influencers.

 

Many marketing directors and committees are questioning how to implement an effective social media campaign.

 

Over the past year, it has been clear Facebook versus Instagram or Snapchat, delivers our demographic – the private club member. Our response is 20:1 favoring Facebook.

 

When analyzing results, “total reach” is of limited measurement. Look to your engagement of likes and shares to see if your message is effective.

 

Also, carefully evaluate how often you repeat the same message. If your prospect/member loses interest in your page, Facebook picks up on the lack of interest, pushing your page further and further down the feed.

 

Also note, not everyone who follows you will receive your post. It is estimated Facebook only “shows” your post to 2-5% of your friends/followers. Why? They want you to spend money advertising.

 

Idea of the month for older private golf clubs

BallenIsles is a highly successful member-owned private community in Palm Beach Gardens, Florida with 1,575 homes. Residents have access to three golf courses, a 62,000 square-foot sports complex, a Cosmo and Company spa, tennis pavilion, and multiple restaurants.

 

With no new real estate for sale, new members must purchase resales.

 

The Board has launched an innovative “Builder Investor Program.” New members who are renovating a home and are unable to live on-property during construction receive a reprieve from monthly dues for up to 18 months. The result? Twelve new members currently are taking advantage of the incentive.  

 

Special offer #2: Mauna Kea Resort’s 44th Annual Pro-Am

Last year, 25 teams competed during Mauna Kea Resort’s Pro-Am, a Big Island of Hawaii tradition since 1972. Should you be able to field a team with three paid members, your room, golf, most meals, and airfare up to $900 is covered – a value of $4,500 to you. For an invitation, please email me at Mark@ExecutiveGolferMagazine.com.