The Impact of 2020 on the FCC’s Financial Standing
Last year proved challenging for any business relying on food and beverage revenue, and the FCC is no exception. Club Treasurer Tim Huxley reviews the balance sheet.
“How do the numbers look?” members often ask me at the bar. That’s hardly surprising, considering the many operating restrictions on bars and restaurants, including the FCC, over the past year. But thanks to the support of members and staff, we have so far weathered the storm.
As of the end of November 2020, we recorded a deficit of HK$472,000 for the first eight months of the 2020/21 financial year. If the current restrictions ease early in the new year, we are hopeful we can get back in the black before the end of the financial year in March 2021.
The loss of banqueting revenue in 2020 hit us hard; however, by maximising revenue in other areas of the club, we managed to navigate troubled waters relatively well. For instance, joining fees are another primary revenue source, and we welcomed a steady flow of new faces last year. Hopefully, the recently announced Member Referral Programme (which awards members HK$1,000 in F&B credits when they refer a successful applicant) will prove popular and further buoy revenues.
Throughout the pandemic, our staff’s job security and our members’ experience have remained top priorities. The government’s Employment Support Scheme, which provided a six-month subsidy to companies committed to staff retention, and other government incentives have enabled us to continue offering the quality of service members expect.
Despite the many obstacles in 2020, we have continuously fulfilled the obligations under our lease, which include meeting our rent obligations of HK$610,000 per month and preserving our listed building through careful refurbishments and ongoing maintenance. So far, we have not dipped into our reserves – this is vital, as we need to show a strong balance sheet for when our lease comes up for renewal in January 2023.
If you would like to support the FCC during this challenging period, we encourage you to enjoy meals and drinks at the club, book events and banquets when possible, and refer friends and colleagues to apply for membership. Looking ahead to 2021, we are in a steady position and remain optimistic about a more prosperous year for the club.