THE FINANCIAL IMPACT OF CONTROLLING LABOR COSTS

Hope Valley Country Club is a historic, high-end private club in Durham, North Carolina, founded in 1926 and managed by Bobby Jones Links since 2019. It features a historic Donald Ross design that hosted one of Byron Nelson’s 11 Straight victories, today offering many amenities and significant dining operations for its 630 members. https://www.hvcc.org.

The labor cost when Bobby Jones Links started managing the club was 67% of total food and beverage sales, excessively high and out of control. Today, after implementing Bobby Jones Links’ proprietary labor expense control systems, it’s 46% of total revenue, saving the club $327,221 per year without any diminution in the member’s dining experience and service levels.

HOW WE MADE A DIFFERENCE

• Optimized staff scheduling to align staff scheduling with anticipated member demand.
• Cross-trained the staff to multitask and assist in other areas of the operation.
• Forecast labor costs based on historical data, weather, and anticipated bookings.
• Streamlined the entire process, including optimized kitchen workflows and workstations.
• Trained and developed the staff to enhance their skills and productivity.
• Monitored the staff’s performance, setting clear expectations and providing regular feedback.
• Tracked labor costs religiously. Developed key performance indicators such as labor cost percentage, sales per labor hour, and labor cost per customer are regularly reviewed to identify deviations, trends, or areas for improvement.
• Whenever possible, limited a la carte and fine dining and replaced it with themed events and more enjoyable and profitable parties.