A LETTER BY GARY LEASOR
Enclosed is my Chickee Bar Cost Analysis for fiscal year ended December 31, 2022.
Based on forty plus years of consulting experience, I provided an overall analysis and my suggested action plan for each of the respective areas of operation. I know that our position over the last several years (when I provided previous analysis as an owner), was "this is a valued service to the owners and all the owners know we are subsidizing their operation". Well I think it is time to go from "subsidize to realize" the financial condition of the Chickee Bar and start addressing the issues.
I recently sent the same information to the officers and Board of Directors requesting that the Finance Committee do a complete financial analysis of the Chickee Bar and provide the Club's Board of Directors with alternatives to improve their overall financial performance. Jorge's response was "it would NOT be the Finance Committee that would tackle this type of challenge". Instead he thinks that a newly formed Operation Committee or Food/Beverage Committee should be involved. He indicated that the Finance Committee should be focused on long-term financial planning. So we have a Finance Committee of financial experts focusing on a 2% reduction in a $4 million loan which will save the club $80,000 a year while we are losing $500,000 a year at the Chickee Bar.
The Executives and Board Members (including me) of this club have continued to accept the "subsidy" concept that the members value the service and are willing to pay for it. I would agree with that concept when the Chickee Bar is being operated as cost effectively as possible. Per the financial information presented by Joe Rotberg, in 2022, the Chickee Bar was budgeted to lose $366,000 but as noted in my analysis it lost $474,705, which is an additional loss of $108,705 or 29.7%. In 2023, we are budgeted to lose $366,000.
It is time to get people focused on this issue be it the Finance Committee or some other type committee.
Thanks
Gary Leasor