As seen in the June/July edition of Club Insight (Issue 3).
Traditional revenue streams, such as traditional food and beverage, gaming membership and sponsorship, remain at the heart of a club’s commercial operations.
However, now more than ever, there is both the need and the desire for clubs to diversify their revenue streams and think outside of the box to secure their future and deliver more to members.
Whether your club’s revenue is flowing in or you are struggling to stay afloat, you can’t deny there are benefits to diversifying your income streams to maximise the use of resources and realise your club’s full potential. Not only is there the benefit of increased revenue, but increasing cash flow opportunities can ensure the longevity of your club by providing financial stability and reducing financial risk.
Here are three ways you could maximise revenue opportunities at your club:
1. Invite new caterers to the table
Instead of continuing to maintain unused function spaces or a challenging food operation, think about whether any additional space can be leased or redeveloped in the future.
Many clubs have successfully diversified their income or reduced trading risk by bringing in external businesses to operate the catering aspect of the club. This simple structural change can replace seesawing profits with a steady stream of rent as a result of these arrangements.
Operating your own catering can be an expensive endeavour which, like any hospitality business, involves constant attention. Instead of pouring funds into the catering at your club and worrying about kitchen staffing problems, perhaps there is an opportunity to turn your kitchen into a leasing opportunity for quality caterers?
Not only could this act as a more stable income stream and potentially increase the quality of your club’s food output, it may also free up time and money which can be better spent on other aspects of the club.
2. Ride the craft beer wave or other hospitality trends
Following on from number one, we have seen clubs consider outsourcing some of their hospitality services to set up themed restaurants, craft beer bars or even a microbrewery at the club. These arrangements can not only boost your club’s reputation at dinner time, but it is also likely to attract a new demographic of members depending on the type of food and drinks offered and the geographical location of the club.
You don’t need to go big to change things up at your club and start reeling-in new faces and some extra cash. You can think about increasing profits by simply changing up your beer offering or style of dining and of course your marketing. Depending on your location amongst the morning commuters or nearby businesses, you could consider bringing in a coffee cart or other dedicated coffee offering to run in the early hours.
3. Be the hostess with the mostess
It is likely that your club is already involved in your local community through sponsorship, so why not make your club the first port of call for all of their functions and events? Investing in a revamp of your function space can increase revenue through high margin event bookings such as Christmas parties, birthdays and weddings.
Clubs are often situated on an impressive block of land, providing the perfect opportunity to run local community events such as festivals and fetes. Ticket sales, stall sales, and even fun activities and competitions can generate revenue in addition to really engaging with the local community. Hosting community events can also make your club appealing to the wider community, breaking down any stigmas that may exist around clubs being closed to non-members, and lead to recurrent business.
We don’t just want to see your club survive, we want to see it flourish. These are only a few ways you can help your club generate more income and increase benefits for your members.
To discuss ideas for your club’s future, contact our Partner, Matthew Bradford on 07 3224 0353.
"The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication."