Guys & Gals,
Let me try to show that TAC does not suffer from lack of Revenue but from a bloated payroll. TAC is and has always been a cash cow. Almost half of its revenue is dues & entrance fees, over Y20 OkuIts Revenue from F&B is very competitive with comparable clubs at about Y350,000 per dues paying member. The problem is that almost 70% of F&B revenue goes to payroll.
TAC’s 2020 Payroll Budget is almost 26 Oku, 59% of OR. That is a budget and of course will be reduced. But a big club like TAC is scalable. The payroll should be under 50% of OR. That can pick-up Y6 or Y7 Oki.Thus if you compare like for like, such as the Tanglin Club in Sing. you will, I believe, see under 50% numbers. I keep asking the GM to do a detailed comparison with 4 reciprocal clubs: the American & LRC IN HK & in Sing., the American and Tanglin.
The Tanglin has about the same # of members as TAC and is elite. When I last checked the NYAC, It was under 50%, and that is tough with the highly paid union workers in NYC.BYW, the payroll figures presented at the 17 June Town Hall are not at all correct. The total 400 staff detailed pay only adds up to two-thirds of the 2020 Budget. One-third, almost 10 Oku, is missing. So, if you take, per the presentation, the 300 who supposedly make Y3.2 mm, by exception the remaining 100 staff would be making about Y16mm per head on average.. Clearly not possible. Or is it?
I am waiting for a reply from T.C. Fix the payroll and you will fix TAC. I qualify this by saying none of this should be seen as the fault of the staff. As Milton Friedman said, “When you hold out 100 dollar bills, you see a very long line of people,” Outsourcing is also a source of cost reduction, The annual budget of the Repairs & Main. Dept. boggles the mind. And it is always easier to reduce costs than it is to increase revenue. Hope this helps a course correction.