Vellano Country Club - Case Study
Private Club Food & Beverage Used to Be a Drain and is Now a Source of Profit
The existing owner of a course where Z-Golf leases the Food & Beverage, The Golf Club of California in Fallbrook, CA, was so happy with the results that he was looking to purchase another golf course. He entered into a purchase agreement to buy Vellano Country Club in Chino Hills, CA, but the owner needed additional bank financing. Under previous ownership, the F&B department was designed to be a loss leader and treated as a member amenity. However, costs from the Food & Beverage department created an unsustainable drain on the profitability of the club.
With Z-Golf signed on as a lessor of the Food & Beverage at Vellano Country Club. The owner was able to secure the needed financing with only a small portion as a cash down payment. The bank indicated that one of the main reasons the loan was approved was due to Z-Golf and the guaranteed, no risk revenue provided from leasing out the Food & Beverage department.
Z-Golf has been able to continue with the private club model. High margin banquet revenues have subsidized the first class service, events, and amenities that are expected of a high-end, members-only club,. Additionally, ownership has had the freedom to focus on golf and member needs exclusively without the headaches of managing food and beverage., As a result, the property is well maintained and members are happy.
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