Letters to the Editor

Dear Editor:

After attending and reviewing the Wednesday November 15th, 2018 FGCC Budget data,  it appears that the proposed 2018 FGCC Budget fails to address the F&B operating issues that significantly contributed to the 2017 historic losses.

Using FGCC 2017 financial data, F&B Division cash flow losses, at the Operating Level are anticipated to exceed $600,000, These F&B losses are the greatest losses in the history of “The Club” and equal to the 2015 and 2016 F&B losses combined.

One might question, why will 2017 F&B Division Operating losses exceed $600,000? The primary reason is Payroll and Employee Related Expenses (which are 100% in excess of accepted Restaurant standards) plus Cost of Sales, exceeded total Sales.

When adding in other operating cost (such as Supplies, Service Fees, and Energy/Water) the resultant is a loss from Operations in excess of $600.000.

Additionally, the margins are adversely affected by the fact that there are 435 FGCC employees who receive a 50% discount on food and non-alcoholic beverages,(at all Restaurants and Snack Bars, even in the off season)  and the Resident Preferred Member 5% food discount.

Given these facts it is impossible to do anything but lose money on F&B services.

These losses however can also be affected by who purchases the food. To illustrate this point:  one $10.00 Entrée purchased at the Legends or Stonehenge Restaurant by a Visitor or a Resident, without a Preferred Member Card, the Club loss will be  $3.00 per Entree; a resident with a Preferred Card the Club lose is $3.50; an FGCC Employee using their 50% food discount the Club looses $8.00 on each $10.00 Entrée.

The November 15th proposed 2018 F&B Operating Budget, which does not address excess labor costs and margins, the same $10 Entrée: for the Visitor or a Resident without a Preferred Member Card, the Club lose will now be $1.90, a resident with a Preferred Card the Club loss will be $2.40, an FGCC Employee using his/her 50% food discount, the Club loss will be $6.90 instead of the 2017 loss of $8.00 on each $10.00 Entrée.

To be clear, no one would be against employee receiving a discount on all food and non-alcoholic beverages (but maybe not 50%) or the Preferred 5% Member discount as long as these benefits were paid for from surplus revenues.

However, increasing F&B loses to pay for these “Perks”, “because our Restaurant are amenity” are no longer an option.

In the past 3 years F&B losses have exceeded $1.1 million; whatever we are doing is not working.

It is now time for concerned Residents to request a Special Committee, made up of Residents with F&B and P&L Experience to review and recommend a cash flow break even plan.

The Committee should report their findings and recommendation to the Residents in a Town Hall Meeting and not a closed door Finance Committee meeting which is closed to all Residents.

Clyde Van Haren

Fairfield Glade