Diversifying your Business Operations – the analysis by Greg Russell

The migration to a broader revenue base by NSW Clubs in the last 15 years has seen venues venture into a wide range of diversified activities and endeavours. From car washes to bowling alleys, coffee shops and motels up to ‘cradle to grave’ medical centres, assisted living blocks and commercial towers, Clubs are starting to gather much needed experience in setting up the businesses of the future. Our presentation at the recent RSLs conference (link: http://www.russellcorporate.com.au/presentations) identified the experience of a range of venues from across the State that should help Boards and Management get some ideas around the best course of action for their venue. Some key highlights from venues who contributed their experience include;

  • Dee Why RSL – profitability has risen 45% from 2013 to 2018 as the Club has developed an over 55’s living facility, added a bowling and laser tag facility and improved its rent by purchasing adjacent commercial properties
  • Griffith Exies – profitability has increased 50% from 2013 to 2018 as the Club has invested in Motels. During the same period, gaming revenue share fell from 72% in 2013 to 60% in 2018.
  • Penrith RSL – has extended their beverage offering, added a revenue generating kids play centre and outsourced their food offering that has improved profitability by 54% from 2013 to 2018.

RCA have identified 3 categories of diversification – broadening, widening and adjacency. Depending on need, opportunity and resources will dictate what strategy a Club can pursue. For all our experience in this area, there is one cardinal rule – ensure the core business is strong, maintains investment and evolves to engage the membership base.

If you wish to discuss your venues options for any future diversification, contact Greg Russell on greg.russellcorporate.com.au