08-01-2013 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 1, 2013
Present: William L. Manuel, Mayor
Darryl C. Aubrey, Sc.D., Vice Mayor
Robert A. Gebbia, President Pro Tem
David B. Norris, Councilman
Doug Bush, Councilman
Ed Green, Village Manager
Melissa Teal, Village Clerk
ROLL CAT.T.
Mayor Manuel called the meeting to order at 7:00 p.m. All members of Council were present. All
members of staff were present, except the Village Attorney. Food and Beverage Director David
Naumann, Finance Director Samia Janjua, Finance Manager Merle Goldberg, Director of Golf Lee
Stroever, First Assistant Golf Pro Casey Mitchell, and Information Technology Director Michael
Applegate were present.
The purpose of the meeting was to discuss an analysis of the Village Tavern Restaurant revenues
and expenses and options to increase revenues and reduce expenses.
Discussion began with the Banquet Facility, and included the following:
• Key expenses
o Personnel
o Utilities/Janitorial
o Credit Card fees
o Banquet fees/packages
■ Costs per person
• In line with surrounding facilities
■ Labor costs
• Set up and Clean up Time
o Estimated revenue to break even
• Breakdown of Quarterly Reports reviewed - May 2012 to April 2013
o Total sales for entire food and beverage operation, banquet, beverage cart, snack bar,
and Village Tavern Restaurant
o Variables - Time of year
■ November - January - increased revenue
• Restaurant operations
o Personnel must operate daily
o Food costs compared to local restaurants in the area
o Summer season — slowest time of year
■ Still utilizing personnel and utilities
Council discussed options to reduce expenses and requested an annual breakdown of food and
�, beverage costs. They questioned how overhead costs were allocated.
Minutes of Village Council Workshop Session held August 1, 2013 Page 2 of 3
Council believed that the cost assumption was strong and questioned how many customers could
be served without increasing personnel.
Food and Beverage Director Naumann confirmed the same number of customers could be served
without an increase in personnel, as the tables turn over quickly. Further discussion ensued
regarding the method of calculations.
• Options to increase revenue
o Food and liquor expenses increase annually
o Increase prices for non-food and beverage items
o Increase premium sandwiches, salads, and side items
■ Currently no upcharge for premium side items
o Continue comparison shopping for premium meats
o Incorporate low-cost menu items
o Limit bar options according to demand — specific times
o Charge a food and beverage minimum for Golf and Country Club members
Discussion ensued regarding the option of tracking and reviewing member restaurant sales. The
option of a food and beverage minimum could create more exposure and more involvement.
Council briefly discussed golf membership fees. They further discussed the option of a minimum
food and beverage fee for members.
o Increase customers
o Advertising/Marketing strategies to promote restaurant
■ Increase restaurant signage along US 1
■ Advertise daily and weekly specials
■ Lunch cards - buy 10 meals get one free
■ Electronic media
■ Customer base increase
• Currently working with Community Development to advertise to
new businesses
■ Increase banquet advertising via electronic media
■ Attend trade shows
■ Complimentary lunches for referrals
■ City Website
• Recently added hours of operation, banquet events and packages,
and menu
o Review hours of operation for restaurant staff
■ In June closed kitchen at 3:00 pm
■ Limited menu at bar
o Review lease options
■ Charge rent, utilities, etc.
Discussion ensued regarding whether the restaurant was simply not doing enough business. There
did not seem to be enough revenue coming in to cover personnel costs.
In summary, Food and Beverage Director Naumann reviewed his recommendations to increase
revenue: 1) increase food and beverage prices, 2) increase signage along US 1, 3) create an
advertising and marketing campaign, 4) review the hours of operation during non -peak hours, and
5) outsourcing the facility.
Minutes of Village Council Workshop Session held August 1, 2013 Page 3 of 3
Village Council thoroughly discussed all options presented. Discussion ensued whether the
restaurant was an amenity provided to members or to the Village. The trend of the restaurant has
been up and down. Council members were not certain whether the Village was making or losing
money. For accuracy, the numbers must be measured over the course of a few ears. Alla reed
Y Y� Y g
that the facility was dated and that preparing a contract to lease the facility would be a task.
Council members expressed concerns of a negative effect to the golf course with the loss of the
restaurant. By consensus it was determined that the Village needed the restaurant.
Council questioned how much of an investment it would take to turn this around next year.
Director Naumann mentioned some infrastructure improvements and making the service level
more appealing for people to come to the restaurant. Council members discussed budget proposals
to address some minor solutions, and the possibility of outsourcing. They would like to further
discuss all options.
Council members expressed concerns about losing members if a minimum food and beverage
purchase were imposed. Council discussed other semi -private clubs in surrounding areas and
requested a cost -comparison for similar services.
Village staff confirmed that there was a lot that can be done now, and that additional meetings
would be held for further discussion.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:50 p.m.
t�� pIeted by
Jessica Green, Village C erk