Have budgetary controls in the US club industry changed from the mid‐1980s to the twenty‐first century?

Abstract

Purpose

The purpose of this paper is to understand whether budgetary controls at clubs have changed from the mid‐1980s to the first decade of the twenty‐first century.

Design/methodology/approach

The survey instrument is mailed to the members of the Club Managers Association of America. The questionnaire includes demographic data as well as information on budgetary controls.

Findings

For control purposes, comparisons to the original budget and actual numbers during the current decade have increased significantly from comparisons in the prior decade. The median variance tolerance for food and labor costs has declined from the mid‐1980s to the mid‐1990s and now to the first decade of the twenty‐first century. Median variance tolerances for beverage costs are slightly higher in this study than in the mid‐1990s study.

Research limitations/implications

The authors are unable to determine any statistical differences between current and prior studies due to a lack of prior data. Further research on tolerable control variances can be studied for other costs, such as supplies, energy, and fixed charges.

Practical implications

This paper provides findings that can help managers as they compare their budgetary control practices with US club industry practices. Educators can provide selected cost control information to their hospitality students focusing on club management and researchers can use this information as a base for further research in cost control areas.

Originality/value

This paper is the first paper on budgetary controls in the US club industry in the twenty‐first century.

Citation

Oak, S. and Schmidgall, R.S. (2009), "Have budgetary controls in the US club industry changed from the mid‐1980s to the twenty‐first century?", International Journal of Contemporary Hospitality Management, Vol. 21 No. 4, pp. 411-421. https://doi.org/10.1108/09596110910955677