The 2016-17 edition details the financial and operational trends in private clubs throughout Florida. According to the 42nd annual report, clubs have focused on enhancing the dining experience with more informal and outdoor dining options, and successful clubs are continuing to make capital improvements.
RSM US LLP, a provider of audit, tax, and consulting services focused on the middle market, recently released its 2016-17 edition of Trends in Private Clubs. This is the firm’s 42nd annual report on the financial and operational trends in private clubs throughout Florida, the state with the highest concentration of clubs.
The annual report highlights trends uncovered through 200+ private club clients RSM audited during the last fiscal year (May 2015 through April 2016). Findings are presented from statewide and regional perspectives, and are segmented by types of clubs, as well as key comparisons from the previous year.
Successful clubs are continuing to make significant capital improvements: 18% over the prior year ($3,920 up from $3,300). Specifically, clubs have focused on enhancing the dining experience with more informal and outdoor dining options when compared to traditional years’ past.
“Over the last five years, clubs statewide have spent $1.26 for every dollar of depreciation they have incurred,” said Philip Newman, partner and national private clubs industry leader at RSM. “They are staying ahead of the curve when it comes to replacing club infrastructure.”
“Food and beverage volume is up more than 5% as amenities came online and up 25% over the five years leading up to 2015,” said Tammy Tassitano, partner and national director of club services with RSM. “This is significant because most of these clubs are truly private and so have a limited number of diners, so its usage is actually driving the numbers.”
This year’s report also reemphasized last year’s assertion that golf has not declined despite perceptions. Rounds played in almost all cases are up as clubs have worked hard to make changes that members want to the courses and to encourage more golf participation.
Club managers continue to use these findings in strategic planning and benchmarking to ensure their ongoing competitiveness. Customized reports comparing clients with similar clubs are also available.