(July 28, 2016) The weather has not been kind to many local businesses, and the Ocean Pines yacht club is apparently no exception.
Negative press also has not helped the bottom line, according to Ocean Pines Association General Manager Bob Thompson.
During a July 20 meeting, Budget and Finance Committee member Jim Beisler said food and beverages revenues were “off $100,000 from the previous year.”
Beisler was referring to the April financial report, which showed about $740,000 in year-to-date food revenues, $210,000 less than the $950,000 budgeted and almost $100,000 less than the $842,000 in year-to-date revenues at that point in 2015.
Moreover, Beisler said May food revenues were off about $39,000 from budgeted numbers and $34,000 worse than the in May of the previous year.
“I’m not drawing huge conclusions from May only because May wasn’t the nicest of months, but comparing it to last year … is troubling to me,” he said. “I wonder what that reduction [in food revenues] can tell us, other than the fact that people who live here aren’t going there.”
Chairwoman Pat Supik said net operating costs in the April report were “a lot better,” showing a roughly $76,000 year-to-date loss. In 2015, at that point, the year-to-date loss was more than $181,000.
“The decrease in business is there also,” she said, adding, “I’m sure this topic is going to continue.”
Committee member John O’Connor agreed the numbers were troubling, saying a decrease in sales year over year was a “long-term problem.”
“The concern I’ve got, John, is that [food revenue] measures what we who live here spend,” Beisler said. “We’re the ones who need to be supporting that for it to have any long-term [profitability] and we don’t seem to be doing that – and I wonder why.
“If the trend continues … that’s not good,” he added.
General Manager Bob Thompson came in to address the concerns, and said poor weather had affected the performance at all Ocean Pines amenities.
“We had that month of 27 days of rain, which had a significant impact on all of the outdoor facilities,” he said. “At the yacht club, a lot of what we do is outside business, [and that] was nondescript for that month.”
Thompson, a member of the Ocean City Chamber of Commerce board, said he had heard anecdotally that slow starts were common among local businesses this year.
He added that the opening of Southgate Grill nearby also had an impact, and that half-price lunch specials and other “sales strategies,” potentially including an expanded menu, were being put into place by yacht club Manager Jerry Lewis to combat the problem.
“Revenues are still not, I believe, where they should be,” Thompson said. “There are a number of factors we’re working on to help improve, and hopefully entice folks to come back in and have a meal with us.
“We haven’t had much of a lunch crowd at all … we recognize that,” Thompson added. “We need to offer specials, fresh market, those type of things, which other people do. We are addressing those things. It’s not something that’s going to be solved in one conversation.”
Thompson said other factors hurt sales at the club as well.
“With so much negativity out there constantly being plastered in the press, what it does is even good people start to question [things] in their mind,” he said. “If the nonsense continues, we all start to buy into and what happens [is] everything becomes negative. We need to focus on all the positives.”
Thompson said the community and the yacht club had recently been recognized on several “best” lists in local magazines. Overall, he said, the financial picture was improving.
“[Ocean Pines had] the best financial year we’ve had in decades. You sit there, look at that, and go, ‘what are people talking about with all this negativity?’ Thompson said. “Yes, there are elements that need improvement … but if you look at the year we’re coming off of, it was one of our best years ever from a financial perspective [and] from a recognition perspective.
“Come on, guys. It’s our club. We own it. We all pay for it. How about you use it?” Thompson said. “I believe [negativity is] a fact of life. We need to get out of this. We have a much better community than what’s being portrayed right now.”
Negative press also has not helped the bottom line, according to Ocean Pines Association General Manager Bob Thompson.
During a July 20 meeting, Budget and Finance Committee member Jim Beisler said food and beverages revenues were “off $100,000 from the previous year.”
Beisler was referring to the April financial report, which showed about $740,000 in year-to-date food revenues, $210,000 less than the $950,000 budgeted and almost $100,000 less than the $842,000 in year-to-date revenues at that point in 2015.
Moreover, Beisler said May food revenues were off about $39,000 from budgeted numbers and $34,000 worse than the in May of the previous year.
“I’m not drawing huge conclusions from May only because May wasn’t the nicest of months, but comparing it to last year … is troubling to me,” he said. “I wonder what that reduction [in food revenues] can tell us, other than the fact that people who live here aren’t going there.”
Chairwoman Pat Supik said net operating costs in the April report were “a lot better,” showing a roughly $76,000 year-to-date loss. In 2015, at that point, the year-to-date loss was more than $181,000.
“The decrease in business is there also,” she said, adding, “I’m sure this topic is going to continue.”
Committee member John O’Connor agreed the numbers were troubling, saying a decrease in sales year over year was a “long-term problem.”
“The concern I’ve got, John, is that [food revenue] measures what we who live here spend,” Beisler said. “We’re the ones who need to be supporting that for it to have any long-term [profitability] and we don’t seem to be doing that – and I wonder why.
“If the trend continues … that’s not good,” he added.
General Manager Bob Thompson came in to address the concerns, and said poor weather had affected the performance at all Ocean Pines amenities.
“We had that month of 27 days of rain, which had a significant impact on all of the outdoor facilities,” he said. “At the yacht club, a lot of what we do is outside business, [and that] was nondescript for that month.”
Thompson, a member of the Ocean City Chamber of Commerce board, said he had heard anecdotally that slow starts were common among local businesses this year.
He added that the opening of Southgate Grill nearby also had an impact, and that half-price lunch specials and other “sales strategies,” potentially including an expanded menu, were being put into place by yacht club Manager Jerry Lewis to combat the problem.
“Revenues are still not, I believe, where they should be,” Thompson said. “There are a number of factors we’re working on to help improve, and hopefully entice folks to come back in and have a meal with us.
“We haven’t had much of a lunch crowd at all … we recognize that,” Thompson added. “We need to offer specials, fresh market, those type of things, which other people do. We are addressing those things. It’s not something that’s going to be solved in one conversation.”
Thompson said other factors hurt sales at the club as well.
“With so much negativity out there constantly being plastered in the press, what it does is even good people start to question [things] in their mind,” he said. “If the nonsense continues, we all start to buy into and what happens [is] everything becomes negative. We need to focus on all the positives.”
Thompson said the community and the yacht club had recently been recognized on several “best” lists in local magazines. Overall, he said, the financial picture was improving.
“[Ocean Pines had] the best financial year we’ve had in decades. You sit there, look at that, and go, ‘what are people talking about with all this negativity?’ Thompson said. “Yes, there are elements that need improvement … but if you look at the year we’re coming off of, it was one of our best years ever from a financial perspective [and] from a recognition perspective.
“Come on, guys. It’s our club. We own it. We all pay for it. How about you use it?” Thompson said. “I believe [negativity is] a fact of life. We need to get out of this. We have a much better community than what’s being portrayed right now.”