City Council considers golf course food and beverage options

City of Camrose council directed administration to tender out two separate levels of Food and Beverage service (one providing a fuller service and one providing a more basic level of service) for the Camrose Golf Course, with the City providing all interested contractors with a history of previous years, including challenges. In absence of any proposals that meet the criteria set out by the City, the City will provide a basic food service using City staff and a professional catering service to cater events as required.

“We have had various attempts over the years of different levels of food and beverage service at the Camrose Golf Course,” noted City of Camrose manager Malcolm Boyd. “Our plan going into this year is to make that very basic snack shack-based service with a caterer for events.

“However, we have been approached by a couple of interested contractors, people who would like to lease the restaurant, who believe they can provide a more flow-through food and beverage service for the golf course.”

Boyd reiterated that the City has been down the road of outside contractors providing food and beverage service in the past, which have not proven profitable for the contractors, thus unsuccessful for the Golf Course.

City of Camrose Community Services general manager Ryan Poole added, “Administration and pro shop staff feel they can handle beverage sales and, if need be, a basic food service. We find that almost all the customers at the golf course are looking for something as simple as a hotdog or a pre-made sandwich.

“The time that they want something more than that is during an event or tournament and, in that case, we would have a caterer come in. Or, if it is a small event, we could work with a local restaurant and the patrons could go over there.”

Councillor Kevin Hycha agreed with Boyd in that the City has gone the route of higher level restaurant service at the golf course with little to no success, but inquired if the City did go with the proposed recommendation, would there still be the opportunity for a more extensive option for Men’s Night or would it be catered.

Poole suggested that there would be two options for Men’s Night, with the first being simple food service (snack-type foods) and then the possibility of a catering for a special event Men’s Night.

Hycha also inquired about concerns over the cost of items purchased, suggesting the City try to keep the cost of the items for sale attainable.

Poole said that last year, as a result of COVID-19 restrictions on food

services, the City avoided full service and went with small snack shack and beverage cart service, which he indicated had good results with a lot of the profit coming from the beverage service, keeping the cost comparable to most other golf courses.

Councillor Lucas Banack inquired as to

whether or not it would be feasible to go with an outside service and contractually obligate them to certain hours.

Boyd responded, “We have tried to do that in the past. The issue last year was that some of the private contractors couldn’t get enough staff to operate, so we had requirements there on service, but they were unable to fullfil it.”

Poole added that when private contractors have to bring in their own staff, it can be costly when the sales are not there. “There are days when there are a lot of regular member golfers on the golf course, but all they really want is a bottle of water, and that isn’t going to pay the wages to have two staff members sitting in the snack shack.”

Poole said what administration is suggesting with their recommendation is on the slower days, the City could provide snacks and beverages with the existing pro shop staff and a few other staff, who are already being paid to be at the course doing other duties.

Councillor Don Rosland asked what other golf courses, such as Silver Creek, are doing with regards to food and beverage service.

Poole replied that administration has compared the Camrose Golf Course food and beverages services to a few others, and either the courses are really busy courses, or they are familyrun courses that run off the same premise as administration is proposing of using existing staff members to also service food and beverage.

Poole also noted that courses such as Silver Creek have the advantage of a campground that draws business to the restaurant. “That is their bread and butter, and they make a lot of money off

that campground. Campers and golfers come and eat at the restaurant.”

Boyd added, “Unfortunately, it is tough to make comparisons because of things like the camping, but also proximity. A lot of the other golf courses have a successful restaurant because the golfers would have to drive 40 kilometres to another restaurant, where our golf course doesn’t have that

constraint. Golfers can just jump in their car and go to a restaurant close by.”

Councillor Agnes Hoveland indicated she would support a basic menu, suggested by administration, but wanted to ensure that availability was addressed. “One of the biggest challenges we had is we would come around and would have loved to have something, but it was shut. Nobody knew the hours, so didn’t know if they should plan on bringing their own lunch or if something was available.” She also voiced concern if the food sold would be of good edible quality.

Poole replied that the food choices would be the basic hotdogs, hamburgers and sandwiches, not particularly gourmet, but good quality. He added that prepared sandwiches and wraps could be available in the pro shop during slower times.

City of Camrose financial services general manager Travis Bouck asked council to take into consideration that contracting the food and beverage services out reduces the financial risks for the City, with respect to how much money the City loses in subsidizing golf course

users’ meals and drinks.

“In 2020, we did make a bit of money from running a beverage cart,” noted Bouck, adding that in previous years, when the Golf Course was operating the restaurant, the City lost approximately $30,000 versus the years when the City made approximately $10,000 rent revenue from outside contractors operating the food and beverage services. “A span of

$50,000 going from worse case to best case for the golf course is a significant financial impact.”

Mayor PJ Stasko agreed with the risk factor should the City decide to operate a larger level of service, and suggested taking time to consider outside contractor proposals before deciding.

Poole indicated that both of the contractors who have presented proposals would like to know before the end of the year, and if council were to decide to go with administration’s recommendation, they would need to know no later than late winter or early spring in order to plan properly.

Mayor Stasko asked if administration has seen the actual proposals by the outside contractors.

Boyd replied, “All proposals have been seen, but administration has not gone out to seek proposals. In order to be transparent, it would be preferable if we are looking to farm the service out that we put a spec together and let everybody bid on it equally.”

Councillor David Francoeur said he would like to see the actual proposals. “If we are going to have some Mickey Mouse fly-by-night ma and pa, then we are going to be in the same predicament we have always been in. If we are going to do this, someone has to step up to the plate and put a really excellent business plan together, otherwise we are wasting our time. Will we attempt to seek out good proposals?”

Boyd remarked, “History has shown that the people interested in this work make rather optimistic assumptions on what the purchasing behaviour will be of our golfers.

“They can certainly bring forward business plans, but the onus would be on us to put reality to them. On one hand, we can accept the business plan that we know is not going to work, but has the contractual requirements in there to provide the service –they will last one season max and they will be running for the hills and we have seen the succession of that.

“I personally don’t think that is feasible to provide that availability requirement that golfers are looking for that Councillor Hoveland is talking about and the level of service, because, quite frankly, if you want to provide steak supper-level of service, you are only selling two on a Wednesday night, and that is pretty hard to make ends meet with staff and chef.”

Boyd said that the City could go seek proposals for hire-out service, seek proposals for basic levels of service, or go the direction administration recommended, with a basic level of in-house service.

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Councillor Joy-Anne Murphy expressed concerns over the possible financial repercussions of the City taking the service on.

Boyd replied, “The intent is not to be a money loser, the intent is to offer a basic bare-bones food service that we can organize to be as profitable as possible.”

Poole added that the two proposals from outside contractors both showed keen interest in the beverage service, which he reiterated did, in fact, make a profit. He suggested the City could consider providing a food truck for the outside contractor, lower the rent and the City retain the beverage services.

Banack asked, “Could we put a tender out and if nothing comes back, that we are comfortable with going with the in-house?”

In looking for direction from council, Boyd asked, “Is council generally supportive of us putting a proposal out for two different levels of service or just the bare basic service? If it is the bare basic service, there is a synergy for us to do it ourselves.”

Stasko suggested it should be for two levels of service, “With restaurant service for certain hours, and the snack shack for longer hours, with criteria on what would be reasonable restaurant hours.”

Rosland agreed that it would be good to offer two levels of service, but suggested the City meet with any interested outside contractors and advise them of the past history of food and beverage service at the Golf Course.

“That is certainly possible,” said Poole, expressing hesitancy over offering a higher level of service, citing that historically there has been an inconsistency with service because the contractor was not making money.

Stasko agreed with educating any potential outside contractors on the history of food and beverage services at the golf course at point of proposal to provide services. “We may not get the high-end restaurant, but may get a snack shack.”

Boyd explained, “We did hold an open house with stakeholders a few years ago, and it was very well attended, there were lots of golfers. We had the same discussion around the level of service. They asked for that level of service and we gave them that level of service and people just didn’t use it.”

Poole indicated that when a higher level of service was offered, often they would sell as little as $50 per day. “I am very hesitant to try it, but if we are to tender it out, I recommend we do so with strict guidelines and just the snack shack, not the restaurant upstairs at all.”

Boyd added, “Or you could tender the restaurant with the option to cater events.”

Hoveland said, “We would need to have a conversation with the patrons that either we have it or we don’t, and if it is there, it needs to be supported.”

Poole said that the pro shop supervisor (heavily involved with golfers) took the extra effort to talk to a lot of the patrons, and the feedback he received was they just want basic service, for example, a plain hotdog and in five minutes be back on the course.

The matter will come back to council for final consideration.

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