Colonial Heritage Food & Beverage Consolidated Profit & Loss Statements

Final Verified Multi-Year Comparison 2019-2023 (Actuals)

Category	2023	2022	2021	2020	2019
Revenue
Food & Beverage Revenue	$1,283,846	$1,164,874	$1,084,792	$371,321	$1,201,290
Total Revenue	$1,283,846	$1,164,874	$1,084,792	$371,321	$1,201,290
Food and Beverage Costs	$445,227	$414,336	$288,396	$169,085	$372,347
Gross Margin	$838,619	$750,538	$796,396	$202,236	$828,943

Expenses
Salaries and Benefit Reimbursements	$902,600	$882,219	$731,815	$526,346	$594,398
Supplies and Maintenance	$68,256	$71,593	$75,182	$51,961	$99,546
Sales and Marketing	$46,708	$33,609	$38,233	$24,042	$40,127
Utilities	$57,474	$52,889	$45,312	$40,249	$45,504
Management Fees	$31,119	$71,909	$52,724	$51,060	$51,060
Insurance	$70,431	$27,308	$43,652	$35,854	$33,258
Real Estate Taxes	$17,375	$15,206	$14,992	$15,066	$15,108
Equipment Rentals and Leases	$20,217	$13,026	$20,547	$11,621	$19,348
Bank Fees	$41,471	$30,340	$24,069	$11,297	$22,249
Janitorial	$80,513	$74,967	$33,057	$14,664	$20,497
Computer Support	$8,513	$12,032	$17,854	$17,787	$17,764
Entertainment/Promotion	$9,327	$11,153	$7,800	$2,365	$17,695
Miscellaneous	$16,776	$14,589	$8,973	$5,948	$11,790
Permits and Fees	$7,817	$8,812	$7,389	$8,736	$8,001
Office, Printing and Postage	$13,706	$11,418	$13,041	$16,315	$14,153
Trash Removal	$2,276	$2,723	$2,970	$2,740	$3,089
Uniforms	$2,279	$918	$1,988	$1,513	$2,430
Member Relations	$0	$32	$0	$0	$0
Legal Fees	$0	$0	$2,304	$69	$67
General F&B Operations	$0	$0	$0	$0	$0
Total Expenses	$1,396,858	$1,334,743	$1,139,902	$837,633	$1,016,084

Net Surplus/(Deficit)	$(558,239)	$(584,205)	$(343,506)	$(635,397)	$(187,141)
Budgeted Dues Subsidy	$223,711	$137,457	$147,428	$211,064	$187,074

Notes:

Consistent Operating Losses: The F&B operation has consistently operated at a significant deficit across all years (2019-2023), requiring substantial subsidies from homeowner assessments to maintain operations.
Revenue Recovery: After the significant revenue drop in 2020 ($371,321) due to COVID-19 pandemic restrictions, revenue has steadily increased each year, reaching $1,283,846 in 2023, which exceeds pre-pandemic levels.
Cost Structure: Labor costs (Salaries and Benefit Reimbursements) represent the largest expense category, averaging around 40-60% of total revenue, which is typical for food service operations but creates a challenging cost structure.
Operational Subsidy: The community has structured its financial model to provide ongoing operational subsidies for the F&B operations from homeowner assessments, indicating it views these amenities as a community benefit rather than a profit center.
Cost Inflation: Several expense categories show significant increases over the 5-year period, particularly in 2022-2023, reflecting industry-wide inflation in food costs, labor, and utilities.
Management Fees: These fees fluctuated significantly over the period, decreasing from $71,909 in 2022 to $31,119 in 2023, suggesting possible changes in management structure or contracts.
Insurance Costs: Insurance expenses increased dramatically from $27,308 in 2022 to $70,431 in 2023 (+158%), significantly exceeding inflation and potentially indicating broader insurance market challenges or specific risk factors.
Expense Variability: Certain expenses show significant variability year-to-year, suggesting either classification changes, operational adjustments, or potentially one-time costs being allocated inconsistently.
Subsidy Gap: In recent years (2022-2023), there has been a growing gap between the actual deficit and the budgeted subsidy, which may require additional financial planning or operational adjustments to address.
Hospitality Industry Context: The performance should be viewed in the context of broader challenges facing the hospitality industry, including labor shortages, supply chain disruptions, and changing consumer preferences particularly affecting community association amenities.

Food for Thought

Non-diners are picking up a substantial portion of the tab for restaurant operations they may never use, with a projected 20-year cost potentially exceeding $7,000 per household. That’s quite the check to split!
The F&B operation has consistently required the largest subsidy among all amenities – taking the biggest bite out of homeowner dues.
The 2020 pandemic year saw the highest losses, but even in “good” years, the operation has failed to break even.
The subsidies have been on a roller-coaster ride, making it difficult to predict future costs. Talk about an unpredictable recipe!
When compared to the golf operations, F&B requires more than double the subsidy – approximately 70% of total amenity subsidies come from F&B operations versus 30% for golf.
Revenue has rebounded strongly since the pandemic, from $371,321 in 2020 to $1,427,642 in 2024, but expenses have risen in proportion, preventing the operation from achieving profitability.

This P&L is based on the detailed supplemental information from the audited financial statements.