The Club of the Future Major Societal Trends Taking Shape The Club of the Future: Major Societal Trends Taking Shape CMAA World Conference on Club Management February 8, 2017 McMahon Group Bill McMahon, Sr., AIA Frank Vain Bill McMahon, Jr. Richard Lareau 1
Boomers Hipsters Millennials Gen X Founders (Gen Z) Clubs must serve all age groups and understand what the next generation is looking for. 2
A Whole Other Country 1970 Population 203 MM % Non Hispanic White 83% # of Households 63 MM Life Expectancy (M/F) 67/75 Median age 28.1 % Living Alone 17% % Foreign Born 5% 2015 317 MM 63% 120 MM 76/81 37.4 27% 13% 2030 358 MM 55% 139 MM 79/84 39.6 36% 17% Source: The Kiplinger Letter America and Americans will look and act much differently 20 years from now. Dramatic shift in the American population over the years and projected for 2030. Clubs must know their members and marketplace. 3
Forces at Work Rise of the Millennial Generation Aging of Boomers Majority Minority Decline in Marriage Rise of the Single Household Impact of Technology Clubs must know their members and marketplace. There are many forces that are affecting and will continue to affect people today and in the future. 4
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Diverse Digital Age Referrals & Endorsements Timeliness More diverse social circle than their predecessors. Matured in a completely digital age. High reliance on referrals and endorsements Demand for timeliness in all aspects of communication and service 6
$$$ Downsizing Southern Migration Experiences Healthy Youngest segment now over age 50 Still where the money is Shredding belongings Downsizing often to urban core Southern migration back on Choosing to spend on experiences Catching up on healthy living Later life dating 7
Trends to Know The top trends affecting clubs today 8
Wellness Easy to Use Third Place These are the four big picture themes impacting choice: The Third Place The Club Brand Health & Wellness Easy to Use (Tech) 9
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English pub signs reflecting the Third Place philosophy. 11
The most popular Third Place in our society today why can t clubs be this?? 12
The Third Place Availability of experiences Tech and real work connectivity Work Life Balance Possessions Personal refuge Overwhelming availability of experiences Increasingly a foot in both the tech and real world Seeking a Work Life Balance Experiences over possessions Club as a personal refuge 13
The Third Place Home Work Club Separate from other environments 1. Home 2. Work 3. Must make it the Club! 14
The Third Place Importance Civil society Democracy Civic engagement Spirit found all over Cafes Parks Clubs!! Unique opportunity Important for civil society, democracy and civic engagement Spirit of place found in cafes, parks and clubs Clubs have unique opportunity to provide access to special people and spaces Increasingly valuable in impersonal, 24/7 world 15
The Third Place What is it? Place to stay and hang out Comfortable Convenient Converse F&B Regularly refreshed An open invitation to stay and hang out ; comfortable and convenient Everybody knows your name A place where you strike up a conversation Food & drink essential to stimulating interactions Familiarity and shared values among members Regularly refreshed by welcoming new members 16
Where Everybody Knows Your Name What a great show. 17
Your Club Community REASON CLUBS EXIST IS TO BRING MEMBERS TOGETHER Clubs are a community of like minded individuals that share similar interests. Must have programs and spaces to bring them together 18
Brandstrong Clubs have inspiring stories to share Connect with consumers Customized experiences Endorsements important Modern experience wrapped in interesting history Emotional stories to connect with consumers Customized experiences and communications: Growth of craft Craft beer and beverages Organic foods Farm to Table Facebook Endorsements increasingly important to purchase and support Modern experiences wrapped in interesting history Clubs have inspiring stories to share What s Yours? 19
Great company brands that evoke an immediate identity into who they are and the quality level of their service/product 20
Club brands that have a rich history and their own stories to tell. 21
Your Brand Tells a Story What makes your club special? Why was the club founded? Purchase of TPC swamp for $1 Special achievements/milestones How did it survive challenges? CHERRY HILLS COUNTRY CLUB COLORADO UNION LEAGUE OF PHILADELPHIA PENNSYLVANIA Each club has a story to tell that makes it unique. What is your story? 22
Health & Wellness Serving an Aging World Social Experience Exercise & Wellness Mind Body Living Longer and Better The fastest growing aspect in private clubs. While facilities are important, the real driver with fitness is the programming aspect 23
Social Experience Time and time again managers have said their fitness center is the most social space in the club. Need the facilities and programs to bring them together. 24
Sample fitness centers showing workout out areas with equipment, studio spaces, conditioning programs and spa. 25
Wellness Center Specialty Fitness Nutrition Planning Massage Services Lecture Series Desert Highland s Mind Body Connection Wellness Center Specialty Fitness Services Nutrition Planning Massage Services Lecture Series Full staff Weights Cardio Studio Pool Patio Bar Pilates TPI Muscle Activation Therapy Meal planning for members 7 types offered Specifically on wellness topics 26
Work Commerce Communication Travel Education Entertainment Affecting how we live and occupy our time 27
Embrace Frictionless experience Get Smartphone Smart Embrace technology to create frictionless experience Smartphone Smart: App Online reservations and bill pay Text messages and other quick forms of communication 28
Ease of Use Rules to fit your culture Eliminate nagging fees Create member profiles Share information and interests with other members Why can t a club be easy to use? It should be in today s world. Make it easy for members. 29
Technology & Communications Near Field Communication (NFC) and Beacon Technology Employees will use to connect with one another Enhance member recognition Anticipate arrival and requests Track activities Tablets New wave of technology will enhance the value proposition for membership. Important to note that no matter what technology is out there, we still need to talk to people that is why we need clubs. 30
Does your club have an APP? New wave of personal technology is changing how people live and interact. Smartphones Smart watches Fitness trackers Interactive glasses Tablets Your cell phone is the first thing your see in the morning and the last thing you see at night. 31
Trends Shaping Clubs Members increasingly seeking things that endure: Third Place Brand/reputation Healthy club Club of the future will be fun, casual and convenient These major trends are shaping the future of the private club. 32
COUNTRY CLUB OF DETROIT MICHIGAN 33
CARMEL COUNTRY CLUB NORTH CAROLINA NOT YESTERDAY S CONEY ISLAND 34
Higher Satisfaction Multiple Recreation Matters No Longer Sets Size Bigger Provides More Resources Increasing member desires/preferences demand scale they want a lot Golf traditionally set the bar on membership size Golf increasingly only part of the mix, with lower frequency of play Larger memberships necessary to develop and operate more expansive offerings 35
Larger, More Integrated Facilities Country Club as a Year Round Club Country Club without Golf Larger memberships need larger facilities than what s offered today New standard: 1,000 to 2,000 member clubs Fewer clubs, broader offerings Affordable dues and initiation fees Primarily operate on dues and usage income, not initiation fees 36
Excellence in core offering: golf, tennis, fitness, boating, etc. Broad array of recreation and games 37
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CHERRY HILLS COUNTRY CLUB COLORADO We must serve all members have spaces for them. 40
POLO CLUB OF BOCA RATON FLORIDA We must serve all members have spaces for them. 41
POLO CLUB OF BOCA RATON FLORIDA We must serve all members have spaces for them. 42
ST. ANDREWS COUNTRY CLUB FLORIDA 43
ST. ANDREWS COUNTRY CLUB FLORIDA 44
CARMEL COUNTRY CLUB NORTH CAROLINA Fun (third) place to hang out with casual, drop in dining and social spaces Promote healthy lifestyles Programs to stimulate participation; clubs within a club Environment responsibility Relaxed rules An HR experience membership experience driven by staff 45
Strong mix of different groups in clubs Millennials & Golf* Diverse, yet golf play among non whites about 50% participation rate of whites More active: golfing millennials participate in up to 10 other activites Money: more financially burdened than prior 18 34 year old generations Tend to see golf as damaged brand Elitist Exclusionary Stuffy social environment *SOURCE: National Golf Foundation 46
Not the primary club activity for most members Practice areas: major emphasis in time constrained society Much more Pro outreach to drive play New, innovative programs, especially for women Build strong junior activities Online tee times Make golf FUN 47
Not necessarily 18 holes. Could be turned into: Super 9 or 12 hole courses Excellent practice facilities including par 3 course 48
What s Hot? Practice Golf Learning Centers Golf Fitness Trackman/technology Simulators Playability Forward Tees Juniors Fun Tournaments Leagues and Programs 49
BALTUSROL GOLF CLUB NEW JERSEY While we talked about What s Hot. Let s look at What s Not: 18 hole rounds Difficult courses Bunkers Competitive events Restricting kids from course 50
BALTUSROL GOLF CLUB NEW JERSEY More and more clubs are investing into golf conditioning spaces 51
TopGolf is becoming a major trendsetter by incorporating golf into a social experience. 52
BALTUSROL GOLF CLUB NEW JERSEY We still need attractive facilities that match existing architecture and are indigenous to the area. 53
Social spaces with firepits for socializing around the course. 54
VANCOUVER LAWN TENNIS & BADMINTON CLUB BRITISH COLUMBIA Facilitate healthy lifestyle Fitness and exercise Classes and spas Mind Body connection Year round usage 55
Health & Wellness Growing Fitness, spas, training, programming and indoor pools integrated with: Healthcare organizations Individual training and conditioning for both children and adults 56
57 Is your club your members Third Place? Be sure to pick up a copy of Ray Oldenburg s book, The Great Good Place 57
JOHNS ISLAND CLUB FLORIDA What s Hot in Dining & Social Spaces Pubs Club restaurants Outdoor dining Gathering spaces Wine Beverages Craft beets Bourbon and whiskey Handcrafted drinks 58
WELLESLEY COUNTRY CLUB MASSACHUSETTS What s Not in Dining & Social Spaces Formal dining Bars in the Grill Room The Mixed Grill Stuffy, traditional rooms 59
DESERT HIGHLANDS ARIZONA Our research has shown that outdoor dining is still the most popular form of dining (in season) for private clubs. One thing we can do better than almost any restaurant. 60
Club dining long associated with formality, even stuffiness Declining attitude toward formality in contemporary life Clubs should respond with more relaxed styles and concepts Desire for more casual, fast, easy while excelling in quality 61
COUNTRY CLUB AT DC RANCH ARIZONA Interesting themed restaurants Match what true restaurants do well 62
VANCOUVER LAWN TENNIS & BADMINTON CLUB BRITISH COLUMBIA Quick casual is great for supporting recreational spaces Grab n go / cyber lounges are growing trends allowing members to enjoy their club and hang out 63
Food and wine never more popular than now seize the opportunity Ease and comfort Convenient extension of home Reserve formality for holidays Tie in Experiences Chef led cooking classes Chef tables Display kitchens Farm to Table events Wine Clubs 64
Youth Focused Professionals Support all sports at all skill levels Ability to focus youth 2015 US Kids Golf Top 50 Teacher, Rob Sedorcek Country Club of St. Albans St. Albans, Missouri igrowgolf, Maggie Simons Carmel Country Club Charlotte, North Carolina Youth spaces are growing in popularity: Independent youth spaces Tween Rooms Family dining rooms Professional staff focused on youth teaching and training Youth golf training igrowgolf (www.igrowgolf.com) Advancing junior golfers 65
WOODFIELD COUNTRY CLUB FLORIDA We need fun outdoor spaces for kids 66
FRENCHMAN S CREEK BEACH & COUNTRY CLUB FLORIDA We need fun indoor facilities for children to enjoy themselves with the latest technology. No more hiding these spaces in basements. 67
Fishing Rodeo XGLOSIVE Tennis Create fun and exciting programs for members of all ages. 68
THE UNION CLUB OF CLEVELAND OHIO The Board sets the policy for the management to execute 69
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Third Place Wellness Easy to Use Must haves to succeed: Third Place social environments Strong identity Excellent facilities for recreation, especially health & wellness A connected hub that is easy to use Effective and modern governance and management 71
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CMAA Session Code: 1729 The Club of the Future It Is Happening Now We Invite Your Input The Club of the Future: Major Societal Trends Taking Shape CMAA World Conference on Club Management February 8, 2017 McMahon Group Bill McMahon, Sr., AIA Frank Vain Bill McMahon, Jr. Richard Lareau 79