Your committee has given members regular updates at General Meetings regarding the change in the fortunes of the club, so members who attend meetings will be aware that we (by ‘we’ I mean the club management, staff, committee and members) have assisted in turning the annual losses into annual profits. The reversal has been dramatic, going from an annual operating loss of $250k to an expected operating profit this year of $300k. How was the change achieved when there are so many insolvent clubs in Queensland?
We are no different from any other business, small or large; the principles are the same so I will outline to you how the change occurred.
Chief Executive Officer
The first principle in any business is to employ the best CEO you can afford because that person is the driving force behind the business. You also need to create monetary incentive to encourage your CEO to stay and grow the business. Zoran Stojcevski is one of the best club CEO’s in Queensland and we are lucky to have him. Your committee has endeavoured to create an environment that will encourage him to stay for many years.
Club members will regularly visit if our staff – both hospitality and office staff – make them feel welcome. One of Zoran’s jobs is to hire staff who are enthusiastic about working in a club environment, making members feel welcome and special.
Your committee acts in the same way a company board. Our role is to set the direction, manage the finances and assist Zoran with special projects. We are conscious of the fact that the club’s money is members’ money and therefore careful how we spend it.
The club also has sub-committees who put in a lot of work ensuring that the areas for which they are responsible run safely and smoothly.
An excellent CEO, dedicated staff and an enthusiastic committee who have the club’s best interests in mind means you are halfway there in turning a profit – but this is not an automatic recipe for making money. The other half is driving the revenue and controlling expenses. Driving the revenue comes from providing an excellent product at a reasonable cost and delivering the product in a friendly and seamless manner.
Having achieved revenue, unless costs are controlled a profit quickly turns into a loss. A restaurant aims to have their cost of goods at around 28% of revenue. At MBTBC we have a higher cost of goods at around 38% of revenue. This ensures that we can provide a consistently good product at reasonable prices. We pitch ourselves as providing better quality food than a pub or a traditional club, but are not trying to compete with the best restaurants.
The MBTBC only exists because of its members. The club must be a place where you want to socialise, so please tell us if we need to improve. If the improvements can be accommodated within our budget, we will put effort into making changes. We are looking to grow the business in both member services and hospitality, and now we are making money we have the perfect opportunity to do so.
Hon. Treasurer – Simon Ball