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hoteldoctor Business Review for a London Private Club & Charity, UK

 

The Client

A global charity providing young people with language skills and a cultural understanding across the world.

What did Hotel Solutions Partnership achieve for the client?

HSP provided the client with a written report within 12 days of the initial site visit with the following findings:

  • There is a fundamental conflict between the club’s charitable mission and what would be required to make it a viable hospitality-driven business.
  • The client’s food and beverage operation is not positioned correctly in the market.
  • Without a robust and clearly communicated business plan, it will not be possible to attract local custom in its restaurant whilst providing a club atmosphere for its members.
  • Constraints posed by the club’s charitable activities and the expectations of its members make it difficult for the outsourced food & beverage contractor to generate commercial returns.

HSP’s report also provided specific recommendations in respect of assessing the highest and best use for the Client’s prime central London property so that the Client’s board of directors can explore the possibility to lease the property.

 

Background

The client’s offices in Mayfair London, serve as a club and HQ for their members, providing function and dining facilities.  Despite the club’s premium location and rich history, its food and beverage business is not sufficiently profitable and the building now requires significant capital expenditure to comply with modern health and safety standards.

 

Client Needs

The Client approached Hotel Solutions Partnership (‘HSP’) for a hoteldoctor business review, to find out how best to improve their F&B and banquet business, revamp their membership base and raise ancilliary revenue whilst being sensitive to the rich history of the building, the client’s charitable status and with a view to maintaining a club-type atmosphere for its members.

Scope of Work

The HSP team conducted an initial desktop research exercise based on information provided by the client to learn the background to the organisation.

Two member’s of the team then spent two days on site with the client during the business assessment phase which entailed:

  • A review of the client’s business structure, including third party contracts
  • Analysis of the revenues and profit conervsion of :
    • Food & Beverage
    • Function Rooms
    • Ancillary sources of income
  • Member profiling
  • Member usage patterns
  • Review of distribution channels for all revenue streams including the website
  • Customer satisfaction
  • Review of sales and marketing action plans