A Club License to Serve Beer and Wine

 
The results of the two workshops and the member survey provided key insights into what members wanted addressed in the Strategic Plan. One of these issues was alcohol sales in our dining room.  The member survey asked the following three questions pertaining to alcohol sales in the dining room:

• Q. 54:  If selling beer and wine in the Ranch House dining room had a positive financial impact on CCR operations, I support the application for a liquor license.
  • 63% favored applying for the license
  •   9% were neutral
  • 28% disagreed with applying for a license

• Q. 55:  If it was financially in the best interest for CCR to sell alcohol in the dining room, I believe a beer and wine only license is the most appropriate.
  • 55% favored beer and wine sales
  • 17% were neutral
  • 28% disagreed with selling beer and wine

• Q. 56:  If it was financially in the best interest for CCR to sell alcohol in the dining room, I believe a beer, wine and spirits license is the most appropriate.
  • 37% favored selling beer, wine, and spirits
  • 23% were neutral
  • 40% disagreed with selling beer, wine, and spirits

Based on the favorable responses to Questions 54 & 55, members will be asked to approve a Proxy issue permitting the Board to apply for a “Club License” from the State to sell beer and wine in the dining room.  Because the response to Question 56 was less favorable, there is no plan to sell spirits.

To make certain we understood the legal aspects of serving beer and wine in our dining room, our entire Board and Management Team met face-to-face with a specialist of the Liquor Control Commission Enforcement section in April.  We were able to ask any and all questions and she provided everyone with authoritative answers and detailed information.
 
That authoritative information helped our Management Team create a comprehensive Service Plan that contains all the details connected with serving beer and wine in the dining room.

Our management team has created a comprehensive Service Plan that contains all the details connected with serving beer and wine in the dining room. We are making a FAQ document available to our members so they can be fully informed before voting on this issue. 

It has been brought to our attention that some, if not all of you, may have received duplicate postcards regarding the upcoming Club License proxy proposal. 
CCR Management has confirmed with the mailing company that they had internal errors that resulted in multiple prints and mailings of the postcard.  Rest assured that CCR was only billed once.
We apologize for this error and appreciate your support for the Club License proposal.

---

Membership Downloads & Links

• Club License FAQs 
• Club License Postcard 
• Michigan LCC Club License Information 
• Michigan Liquor Control Commission Website​
• CCR 2019 Complete Proxy Information
• CCR 2018 Strategic Planning Survey

---

Questions Raised by Members & Answers Provided by CCR

• Would there be a time that beer and wine would start to be served and what time would that be, or hasn't it been decided yet?
  • ​​​​Beer and wine would be available to any member when the dining room is open.  As an example, if a member wanted a mimosa (provided CCR had them on the beverage list) at 8 am for breakfast, it would be served.​
• Is the dining room profitable now as it stands? Probably not, so where will CCR get the funds for insurance liability, dispensers to serve beer, certified bar tenders to serve/ added staff. Another loss that members will have to incure!
  • As stated in FAQs #10, #17 & #23:  Canada Creek Ranch has always offered its dining room as a member amenity. Our members have regularly confirmed their appreciation of the dining room by using it.  The 2018 member survey showed a total of 67% of respondents rated our dining room services as “Important” or “Very Important” in their decision to become Ranch members; and a total of 70% rated our dining room services as “Important” or “Very Important” in their decision to remain Ranch members.  Our business plan does not rely on the dining room turning a profit. While we strive to run it as efficiently as possible, the dining room’s charter is to offer our members tasty and wholesome food served in a friendly and enjoyable dining experience at a reasonable price. The addition of beer and wine availability is not proposed as a means to make the dining room profitable, rather, it is being proposed as a response to positive member feedback. CCR's total increase in costs for insurance and licensing will be about $1,800 annually.  Initial asset costs are estimated between $2,500 to $3,000 to be paid from the Operating Fund. This includes such items as pint beer glasses, wine glasses, and used coolers. As with the cost of insurance, these costs are containable and will almost certainly be offset in a reasonable time period by increased revenue from the sale of beer and wine in the dining room. 
• In response to the loss in the dinning room: the Loss was $167,000. The question that should have been asked is the dinning room worth $100.00 per membership without purchasing a cup of coffee. I feel the dinning room is an enhancement to the ranch but not at the loss it has experienced. And now we are going to add an additional cost of alcohol. I think we need to be fiscally responsible and look at how to bring cost down.
  • While your concerns are valid, we are always looking at ways to bring down the losses, without sacrificing service.  This is paramount.  With that being said, expenses have increased, and we have tried to maintain economical meal prices.  We are not open to the public which gives you, as a member,  less to no wait times to be seated and lower costs when you utilize the dining room.  As with a majority of our amenities, it doesn’t pay for itself in usage fees, but is subsidized from membership dues.  Not everyone utilizes the beach, the creek, the shooting ranges, the hunting area, the overnight rooms, etc. but many members value these amenities as their top choice for maintaining membership at CCR and they are paid with dues subsidies.  Based on the 2018 survey, the Dining Room (67% listed the dining room as important to their decision to become members and 70% listed it as important in consideration to remain members) is ranked higher in importance than: Some hunting, hiking, creek fishing, rooms, snowmobiling, full-site camping, electric camping, rustic camping, rental cabins, and more.  
• If CCR acquires this Club License, how does this effect the whole club property outside of the Dining Room?  Will I still be able to have beer, wine or a mixed drink at other areas of the club such as the Beach?
  • ​As stated in FAQs #20 & #22: The only area that will be designated as a licensed area will be the public areas on the main level of the Ranch House. That will include the dining room, the deck, and the lobby. All other areas of Ranch property would not be impacted by this license. The Liquor Control Commission will not allow “Bring Your Own (BYO) alcoholic beverages” within the Ranch House licensed area only. The only alcohol allowed to be served in our Dining Room will be the beer and wine sold by the Club to our members. Other alcohol on the other CCR property is not restricted and you may BYO any alcoholic beverages to those areas.  Please remember that glass bottles are not allowed on the beach. 
• If the survey indicates the majority of members want beer and wine at the Ranch House, then why spend valuable resources [Physical Postcard] promoting it?  
  • ​Thank you for your comments.  We understand your opinion.  The Board of Directors (BODs) and management believe getting the facts to the membership is very important and money well spent.   This postcard is the BODs and management’s attempt to become better at communicating with the membership as outlined with the 2018 Strategic Planning Survey Question #81.  While we did receive favorable results on this specific question, we know that this can be improved. The postcard is an effort to improve our message utilizing a direct-mail communication method.   Truly, the BODs and management are trying to help disburse factual information allowing CCR members to make an informed decision. 
• In my opinion it will just show the dining room losing more money then it already does.
  • Thank you for your opinion.  As stated in the FAQ’s Question #5 and #17: Our business model sees the dining room as an amenity offered to our members for their convenience and enjoyment, it has never made a profit for the Club. Our business plan does not rely on the dining room turning a profit. While we strive to run it as efficiently as possible, the dining room’s charter is to offer our members tasty and wholesome food served in a friendly and enjoyable dining experience at a reasonable price. The addition of beer and wine availability is not proposed as a means to make the dining room profitable. Rather, it is being proposed as a response to positive member feedback. We certainly don’t forecast this service to increase the loss.  We expect the sale of beer and wine will actually reduce the overall losses to the Dining Room’s bottom line.  Instead, selling beer and wine should be viewed as another service offered to our members based on their expressed support for the idea. 
• Just a question that may or may not have been answered before. If a beer/wine license were to be approved by the membership, must one order food in the dining room in order to indulge, or can you just go in to drink a cold one without food purchase.
  • ​Thank you for your question.  Yes, you can drink a cold one without a food purchase.  There are no requirements to order food.  According to FAQ #16: As part of the Service Plan, our management will extend the dining room operation hours until 9:00 pm. We believe this will help alleviate circumstances where table space becomes an issue. If experience shows table availability is becoming a problem, our Service Plan calls for us to consider additional seating capacity by exploring additional seating. 
• If I remember right the license and insurance were expensive. Will the issue of the license be voted on by the members?
  • As stated in FAQ Question #10: The Ranch’s current premiums for Property, Auto, and Liability Insurance total $40,500 annually. We have checked with our insurance providers. They estimate a Club License will add approximately $500 (1.2%) to this total. The cost of the Club License itself is $1,300 annually. So, our total increase in costs for insurance and licensing will be about $1,800 annually.  These costs are containable and will almost certainly be offset by increased revenue from the sale of beer and wine in the dining room. In addition, we anticipate increasing the number of meals sold to members who may have otherwise chosen to dine at a restaurant where they could order a glass of beer or wine.
    
    In regards to your second question, the answer is yes, the issue of the license will be voted on by the members.  The reason you are seeing these discussions is because of the upcoming 2019 Proxy proposal regarding a Club License.  The CCR BOD and management have put together information for the membership in regards to this proposal.  We encourage you to visit www.ccra.club/license to see all the available facts and information.
• We are disappointed that the survey results (beer and wine in dining room) are extrapolated to non-dining and carry-out beer and wine sales. We support the idea of beer and wine with meals to enhance the dining room experience and finances. However, a bar atmosphere is not appropriate with family dining. Also, a retail carry-out was not implied in the survey. Disappointing. 
  • ​Thank you for your opinion. The main reason we are including the immediate take-out option is for our overnight rooms.  Since this area will be an unlicensed area, beer and wine opened within the licensed area cannot be removed to the lodging area.  This option allows a member to purchase beer or wine and bring it down to their room without any legal complications.  A cornerstone of Canada Creek Ranch is the premium we set on the importance and quality of family experiences. One of those experiences is bringing the entire family which may include children and grandchildren to the Ranch House Dining Room for a meal. There is no reason to believe that offering beer and wine to our members in the dining room, nor allowing them to remove it from the licensed area, will have any negative effect on the atmosphere, comradery, or enjoyment of the family dining experience.  Management and the Board agree, a bar atmosphere is not what we are trying to create.  Additionally, we believe offering a carry out option of unopened beer or wine does not contribute to a bar atmosphere.
     

---