Food and beverage levels during the 2008‐2010 economic downturn in clubs

Abstract

Purpose

The purpose of this study is to examine the food and beverage revenue changes in private clubs in the USA during the economic downturn from 2008 to 2010.

Design/methodology/approach

Over 1,000 private club managers in the USA were surveyed to determine the impacts of two economic downturns on their financial performance.

Findings

Findings of this study indicated that most clubs experienced a decrease in their overall net food and beverage revenues and consequently experienced significant losses in their overall food and beverage operations, especially affecting private party business in 2010.

Research limitations/implications

This study examined private clubs requiring sponsorship of membership candidates by existing club members in order to maintain their exclusivity, whereas many for‐profit clubs, semi‐private clubs, and non‐private clubs do not require sponsorship. Future studies should investigate if for‐profit clubs, semi‐private clubs, and non‐private clubs experienced the same negative impact on their food and beverage services as the private and exclusive clubs of CMAA explored in this study.

Practical implications

City/athletic clubs are severely impacted during economic downturns because most members only use their clubs for business purposes. Therefore, private club managers, particularly in city clubs, need to take into account expanded promotional strategies to retain or grow member food and beverage revenues during economic downturns.

Originality/value

The analysis of economic downturns and their impact on food and beverage revenues and overall profitability provides valuable information for private club managers in their quests for revenue generation, membership growth and improved profit performance.

Citation

Ferreira, R.R., Maier, T.A. and Johanson, M.M. (2012), "Food and beverage levels during the 2008‐2010 economic downturn in clubs", International Journal of Contemporary Hospitality Management, Vol. 24 No. 4, pp. 614-627. https://doi.org/10.1108/09596111211226851