From the Ohope Chartered Club Committee
To all our valued Members
Ohope Beach and all we have been used to and been a part of our normal routine has changed. This also applies to how we have been able to move around New Zealand freely and in fact the whole world.
This huge change affecting every single one of us, and the way our country operates, has meant we have had to readjust.
While it has affected businesses, companies, organisations and institutions it has also affected people who rely on being part of our workforce to support their families.
It has also affected what we take for granted -
* joining together as families, friends and communities
* enjoying sport and leisure either for fun or competitively
* coming together and enjoying social interaction
Because of all these things we have for the past three and a half weeks had to live quite differently.
What has this meant for the Club?
We have been closed for three and a half weeks, our staff cannot come to work and we still have monthly overhead commitments to meet.
The immediate outlook in regards to reopening in the near future is not clear regardless of the improvements we see, due to the governments steps to contain Covid19.
Summer 2019/20 was poor for most tourist operations and food and beverage businesses in the Eastern BOP due to the Whaakari (White Island) eruption in early December.
After the difficult summer and heading towards the Autumn/Winter seasons the Club looked to employment of a new go ahead Manager as a plus going into the quiet season.
BUT Covid19 arrived and with it brought us no options, and an unsure and insecure outlook going forward.
No options meant we had to do what the rest of the country was facing – close our doors
Unsure and insecure outlook meant trying to look into a crystal ball and guess when we would be able to reopen ... and then get the business of the Club into a position of strength.
Sound easy?
What has your Committee been doing?
2 days before Stage 4 was implemented over three and a half weeks ago the Club doors closed with a lot of effort from the Manager, the staff and the Committee.
Closing the door may sound easy but it was a huge exercise making sure the Club was clean, secure and all stock – food and alcohol was accounted for and stored.
Every cent had to be balanced and banked, ensuring no money was on the premises.
With the announcement of national lockdown, and the ability for businesses to be able to apply for wage subsidies Manager Colin Stobie very hastily applied and filed for the Club staff. Just as quickly we received back confirmation and have enough to pay our staff 80% of their normal wage for 12 weeks.
Then the Committee immediately went into discussion for a Covid19 response and recovery plan for the future.
Formulation of a current shut down and expected post-recovery plan began with a need to ensure two main objectives would be met.
Survival
To understand the challenge we had to look closely at our current financial position and the impact on cash flow and reserves over the next short period.
Graeme Lee – and the Club undoubtedly owes him a huge amount of thanks for the time and effort he put into cash flow forecasts – took on the task of predicting how the Club and Restaurant would survive if the closure was extended until 30 June.
It became obvious immediately that the Club needed to get into discussion with our bank to secure extra lending facilities and a 6 month deferment of loan instalments.
As well even though timing does not always suit we unanimously decided we must ask members to pay subscriptions for the current year immediately.
Viability
How will the Club survive long term?
As mentioned above we need bank assistance for up to 2 years. That should be enough for the Club to establish itself and start growing.
The cash flow forecasts have been done conservatively and there is reasonable probability that the targets implied in the models can be exceeded.
Viability will depend on the Restaurant working well, gaming receipts being maintained and improved, bar sale volumes being improved, and successful functions.
I have asked Manager Colin to attach below this newsletter his message that he has put together for you all – please read and take heart from a Manager who is genuinely caring and totally success driven. I look forward to the future under his management and he will be supported strongly by the committee.
Next Steps
As governors and management of the Club and C’Vue Ltd we must show that we are acting properly in preserving the business and securing the future operations of the club.
After much discussion the Committee has resolved to increase the annual subscription of the Ohope Chartered Club to $90.00
The Committee has also resolved to decrease the prices of beer and wine to match or better any other eating and drinking establishment in our area, ensuring members are rewarded for their loyalty and membership
As well C’Vue will be open and looking great.
Colin and Donna Stobie and Head Chef Justine are planning now!
Debenture Proposal
The Club is seeking new capital to ensure survival following the Covid19 shutdown, and to provide funds for future development and growth.
It has been suggested that it would be a viable and practical to introduce a debenture facility, so as to allow members to show support for their Club.
This will allow members to demonstrate their collective resolve, to ensure the vital part the club plays in our community in the future.
It is the intention to present a proposed debenture plan to the full committee for approval then a description of the proposed debenture scheme will be given to members in the near future.
All decisions made by the Committee have not been taken lightly. We have very honestly and accurately looked at where we were pre Covid19, where we are now and what needs to be done, and where we want to be in the very near future, OPEN and OPERATING and strongly supporting management, staff and our members.
Be safe, happy and well – we are enviably in a great lockdown location
Karen Pocock - President