OPINION: Food & beverage losses not disclosed
by Clifford F. Dobler
As a follow up to our story on July 21, 2023 regarding setting rates and fees for the golf courses,recent information brought forth by management to the Board indicates losses in fiscal year 2023 from food & beverage operations at the Grille, the snack bar and the beverage carts at the Championship golf was a staggering $315,124.[1] These operations had historically broke even, more or less, until 2022 and 2023. Since the losses were buried in the golf course reports, it was not apparent the losses were impacting golf rates. Had the losses been disclosed by Darren Howard, it is conceivable that golf rates might not have increased as much. In addition, the Board, without a doubt, would have decided that food & beverage operations should not be included in setting rates.
As an example of poor accountability, in fiscal year 2023 revenues were only 72% of budget and expenses actually exceeded the budget. So for a $10.00 hamburger sold, golfers were required to cough up $5.00. Pretty bad and I would assume the golfers do not appreciate it. According to Mr. Howard over 75% of the Grille customers ARE NOT golfers.
Over the past six years the Champ golf operations had an average annual loss of $255,000 which were paid from Diamond Peak profits. The capital cost were paid by the facility fee. Without losses from food & beverage, the Champ course may have been profitable in certain years.
All of the yelling and screaming at board meetings from golf club members over the steep increases in rates could have been avoided had proper reporting been done by Darren Howard and his staff. Without the help from Trustee Schmitz, these losses may never have been discovered. In the future I predict that Grille operations will no longer be part of the Golf financials.
Clifford F. Dobler is an avid golfer, resident, property owner and voter of Incline Village and has owned golf course properties. J. Gumz contributed to this article.
[1] District report by Food & Beverage: http://ourivcbvoice.com/wp-content/uploads/2023/07/F.1._-_Reports_-_Food__Beverage.pdf, page 10.