- Last Updated: 27 August 2018 27 August 2018
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At Sunday’s Monthly Membership Meeting, the BOD presented the following changes it felt were necessary to maintain the financial stability of the SOECC
The 10-year mortgage on the club property is expiring and we will be refinancing our current mortgage combining it with the mortgage we have with the land next door to our property. While we have not yet received final numbers from our bank, we are expecting an increased interest rate which will result in an increased monthly mortgage payment. We are confident we will be getting 10-year mortgage with a 15-year amortization schedule at a reasonable interest rate but to anticipate this increase we have decided on the following measures.
The BOD has been researching ways to increase our revenues and reduce expenses. We have three sources of revenue: Membership, Bar, and Kitchen. The following outlines our discussions with each of these sources to increase revenue and decrease expenses to ensure we are able to meet our monthly costs of running the club.
- Membership Dues: Dues were raised to $65 last year and the Board was reluctant to raise our membership dues at the present time.
- Restaurant: The last several months the BOD has been working with Katie Fitzsimmons looking at increases in food prices with our vendors and have made several subtle changes to our menu to offset these increases. Katie is now reviewing market prices for food purchases and will offer menu items such Prime Rib and scallops during special occasions or when a lower price can be negotiated. We have brought back salads and some other lower cost food items such as the burger bar, swordfish, chicken dishes and more shrimp offerings to provide a variety of food items at a very reasonable cost to our members.
- Food/Beverage Tax: The BOD also reviewed the 7% Mass/Yarmouth food and beverage tax the club currently absorbs which costs us over $30,000/yr. and has become an exorbitant expense. The BOD voted to not add this food/beverage tax expense to our purchase price because of the impact it would have had. As we know, we currently provide members with a $2.00 price reduction on their meals. This price reduction costs the club more than $15,000/year. After a lot of discussion, the BOD voted to eliminate the discount effective on May 24th.
- Bar Revenue: Drink prices . . . how many of you know the last bar price increase came 10 years ago when we moved into this building and was the only bar price increase in the Club’s history where drinks have risen a whopping $.25 in 13 years. The BOD requested the new bar manger and the two previous bar managers review drink prices and comeback to the Board with a recommendation which was to raise bottled and draught beer by 25 or 50 cents, raise wine prices by 50 cents and raise most drink prices by one dollar. The BOD unanimously approved these recommendations. The new price increases go into effect on May 24th. Please keep in mind there is no place on the cape where you can get a bottle of beer for $2.75, a very full glass of wine for $4.50 and a mixed drink for $5.00. Drink prices will be posted at the club in the bar and on the bulletin board.
No one likes price increases, but with both bar and food revenue declining, expenses rising, a new mortgage in the immediate future and large capital projects such as replacing the hot water heater, we need to do something, and this is what the BOD decided to do now. Thank you in advance for your understanding.