Incirlik and Lajes clubs go contract

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RAMSTEIN AIR BASE, Germany (USAFENS) --  In 2005, the Incirlik and Lajes clubs undertook the almost unheard of course of action to contract out dining room operations at their clubs. Although these clubs were well managed and supported by base leadership, membership and talented staff, the continued losses in the dining room operations compelled local leadership to look for a better way to provide valuable services to the base while reversing negative financial trends.

In 2005, the Incirlik club cleared its first hurdle in an endeavor to achieve long-term financial solvency.

“Since the curtailment of Operation Northern Watch in 2003, the Club has seen its’ population and revenues significantly diminish,” said Jude Sorg, 39th Services Squadron.

Monthly labor expenses for dining room operation exceeded sales by nearly 2 to 1. Unable to reverse this trend operating in the traditional manner, leadership turned to the local private sector for partnership opportunities that would allow the club at Incirlik to retain full service dining while reducing losses. After months of negotiations and successfully transferring effected employees to other activities, the dining room operation was contracted out to a local vendor.

In August, the ribbon was cut, opening only the second contracted club dining room operation in the Air Force. The financial improvements were immediate, allowing the club to produce consolidated net income after depreciation profits monthly. The club was profitable in the first quarter of fiscal year 2006 and reported considerable financial improvement compared to the losses the past two years.

“This undertaking was not without challenges, but thanks to the partnership with our host nation contractor, the future is bright not only for the club, but the men and women who serve Team Incirlik,” said Mr. Sorg.

The Top of the Rock Club at Lajes overcame similar challenges with comparable positive results.

“I am a die-hard club manager straight out of the old school, and I would never have believed that any contractor could possibly be better at running a club dining operation than another club manager. Boy was that ever wrong” said Mr. Don Erhman, 65th Services Squadron.

Dining room and catering sales hit a record high in December and both the contractor and the club have been in the black operationally since the second month of the contract. The club was profitable in the first quarter of fiscal year 2006 and reported considerable financial improvement compared to the same period the year prior.

“When we decided to contract the dining operation we knew that success would hinge greatly on achieving a partnership with the contractor,” said Mr. Ehrman. “He has adopted a partnership stance with us in all aspects of the club operations, making this a profitable partnership indeed. Together we are setting a new high in customer service and product quality, while gaining a superb reputation as the premier catering location on the entire island.”

At both Incirlik and Lajes, once the contracts were awarded, countless hours of training followed, including: inventory, accounting, point of sale system, equipment operations and indoctrination into the mission and expectations for an Air Force club. Menus were built to compliment the local cuisine while incorporating the Air Force core menu. Both clubs require the contractor to support membership events and promotions throughout the year to ensure the value of club membership is continued.

The decision to contract out these dining room operations did not come without careful consideration. However, at these two unique locations, the partnerships with successful local contractors are showing these to be a sound business ventures that will contribute to improved quality of life for Airmen and family members for years to come.