Operational challenges golf course general managers need to overcome

After an extended period of declines and golf course closures, the past couple of years have been boom years for the sport.

The golf industry wrapped up another strong year, with the National Golf Foundation reporting a net increase of 500,000 golfers in 2022. However, rising costs and labor challenges loom on the horizon, and general managers need to look ahead to prepare their businesses and teams for the golf industry challenges ahead.

Labor issues continue to weigh on golf operations

The labor shortages that have impacted many sectors have also hit golf course operations hard. From experienced agronomy specialists to creative chefs, good help is hard to find and harder to retain. There is a ceiling to how much general managers can raise hourly wages before costs need to be passed on to club members and golfers, which could impact customer satisfaction and retention.

To overcome labor shortages, we’ve seen clubs tap on temporary labor solutions, such as Anserteam and Instawork to fill gaps, especially during peak periods such as wedding season.

At Entegra, we’ve also seen golf clubs find ways to increase efficiency and focus their workforce on where it is needed. For instance, some clubs have shifted weekday breakfast and lunch service to grab-n-go offerings and on-course snack stands, reducing labor requirements during those day parts. Some forward-thinking clubs are even exploring unmanned micro-markets, where purchases are automatically charged to members without the need for a cashier by using technology. Even small steps like using pre-cut ingredients in the kitchen saves time spent on prep and increases productivity.

Golf clubs cannot ignore sustainability and CSR

Sustainability is no longer nice to have but a need to have for golf operations. Golf course general managers need to proactively show their commitment to sustainability and take concrete steps to minimize the impact of their operations on resource usage to appeal to a younger generation of golfers.

Enhancing sustainability is good for business and turns a golf industry challenge into an opportunity. Switching over to drought-resistant grasses, or grasses that use recycled or greywater, will reduce water costs, while investing revenues in enhancements like solar panels will help mitigate energy price increases. Even reducing food waste through systems like Leanpath can reduce costs in the kitchen and improve margins.

Many golf clubs we know are taking these steps and more. But it’s also important to communicate these to members and the wider community – from signage that explains what clubs are doing to visible gestures like using eco-friendly or compostable cups for beverages. Entegra has suppliers on our program who can support these initiatives and more.

Increased competition for leisure time will impact golf membership retention

While rounds utilization at golf courses is up, we need to keep in mind that the industry is competing with other leisure activities for members’ time. To address this common golf industry challenge, golf clubs are introducing new dining concepts, such as beer gardens or gastropubs, and activities such as simulators, pickleball and other fitness facilities – an expansion of the industry’s “come for the golf, stay for the food” strategy.

By shifting the clubhouse towards a more social, activity-based hub, golf and country clubs can also gain incremental revenues and increase the average number of visits per month to the club. This will help increase “stickiness” and make purchasing decisions easier when it’s time to renew memberships.

Economic pessimism on the horizon

Despite promising job numbers, consumer confidence declined and expectations of a recession are high.¹ While clubs currently see elevated average revenues per round of golf, a recession could lead golfers to tighten their belts.

Prudent general managers should consider using the increased revenues they’ve enjoyed for the past couple of years to strategically upgrade their clubs. From installing new energy-efficient HVAC systems to bringing in TopTracer systems, upgrades that can reduce long-term costs or increase topline revenues should be considered.

Working with a Group Purchasing Organization (GPO) like Entegra will help, too. With our golf industry procurement experts , we can help golf and country clubs save money and time – from day-to-day purchases like food service and chemicals to significant capital upgrades. We know that we might not be the right solution for every club out there, but our experts would love to speak with you to find out if we’re the right solution for your operations.

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¹_{Morning Consult: https://morningconsult.com/2023/02/01/2023-will-test-labor-markets-resilience-report-preview/}