Thursday, May 6, 2010

Shaker Country Club




We met with the General Manager of the Shaker Country Club, Philip J. Boova.
Here are our interview notes about the club:

Shaker is a strong middle sized country club with about 400 members. You can join Shaker if and only if you know a member and are invited by the club. There is no form of advertisement other than word of mouth.
Family Club:
Shaker has transformed itself into a family oriented club. With an average age of 52, Shaker is far younger than most of the clubs around. Most clubs that are failing today have an average age much higher than Shaker. With summer camps such as tennis, golf, and swimming, there are various ways to include the young ones. Shaker has changed its menu to be more kid friendly while still offering a more adult friendly dining option. Women are very involved within the club. It is one of the few clubs around with a woman on the board of directors. Mr. Boova stressed that women often make the social decisions in a family so it is important to include them in club planning. Shaker offers Tuesday women's golf and many events just for women such as a fashion show or upscale dinners.



Dining:
Shaker Country Club offers two dining options for members. On the first floor is the very upscale and elegant dining room. The dining room expects a stricter dress code and a more formal menu which is less child friendly. Shaker has flexibility by offering a downstairs grill room. The grill is far more casual for children after swimming or adults after a round of golf. The menu consists of bar food and there are TV's to enjoy.

The ballroom is one of Shaker's big attractions and the number one reason that the club makes an astonishing $1.7 million revenue from food and beverage. Almost all clubs lose their money from food service but Shaker is an exception. One main explanation of this large profit is their willingness to host events for outside companies and non-members. The government allows clubs to make 15% of their earnings from outside sources. Shaker takes full advantage of this, something most clubs don't do. For example, if a non member is going to get married and knows a Shaker member, the reception can be at the club.


Golf:
At Shaker, 62% of the members have a Golf Membership. This grants them access to the golf course and all other facilities. Mr. Boova claims that golf is the main attraction at the club. Shaker has a reasonable guest policy for the golf course in which a guest can play only five times in his or her lifetime as a non member. Shaker feels that by spending money through reinvestment and redesigns on the course, they will receive more guest satisfaction and therefore profit. Shaker spends about $800,000 on the course per year, which is on the low side for clubs. Shaker has no interest in joining Club Corp, which is a private business that grants people around the nation access to private clubs. Mr. Boova believes that, "independence is better...shaker doesn't need to have club corp take over."

The pro shop is owned directly by the club so any profit is handed to the club's revenue. They are proud to sell Shaker merchandise and turn about a 15% profit.
Shaker does not intend to hold any professional golf tournaments because of the level of difficulty of the course. While it is challenging to a low handicap, it would not be challenging to the pro's. However, its beauty is up there with the greatest courses.
Membership:
Shaker offers a variety of memberships. The golf membership grants access to the course and all other facilities. There are two different kinds of 'social' memberships. One is dining only for those members who just want access to all food options. The other is a recreational social membership which utilizes everything other than the golf course. Shaker has a nice touch in their Honorary membership, which can be obtained only after exemplary service to the club or 50 years of membership. Also, widows of club presidents can receive the Honorary membership. There are no dues to be paid with this respected membership.

The number one reason why members leave Shaker is financial troubles. Only two member families have left Shaker for another club in the past five years. Both transferred to the Country Club. Shaker's prime location has been a plus. The revitalization of the University Circle and being seven minutes away from the Cleveland Clinic has attracted many doctors.
Future Plan:
Mr. Boova was strong to tell us that Shaker plans to keep doing what they are doing. Even in these challenging times they plan to toughen it out by spending money to make money. Mr. Boova told us that they don't want to just, "survive it but thrive" during this tough time. Shaker has managed their resources very well and are prepared for an increase or decrease in economic volume.


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