_Apr/capitalizingongoodfortune.jpg "Capitalizing on Good Fortune")
By Kyle Darbyson
After an unexpected turn for the better in the local economy, Walnut Creek Country Club is positioning itself for a robust future
The private club industry is beset with grim news of plunging play and dwindling memberships, but Walnut Creek Country Club in South Lyon, Michigan, represents a rare bit of good news. The private equity club is adding new members and investing millions in its future, and doing so in the most unlikely of places.
Located 45 miles west of Detroit, Walnut Creek boasted an enviable mix of aquatics, tennis and golf that appealed to the robust executive class of the area’s automotive industry for 28 years. “We used to always have a few families on a waiting list,” remembers general manager Kevin Frantz.
But, like so many other areas throughout the country, the downturn of 2008 hit the community—and the club—hard. Frantz says memberships dipped as low as 335. “Anytime we get below 350, we start to have some difficult conversations,” he admits.
Management responded aggressively, introducing payment plans and slashing initiation fees. Before the recession, Walnut Creek was charging as much as $45,000; at the low point, the rates were down to $6,000.
Then, as the government’s bailout took hold, things began to change and jobs poured back into the area. Suddenly, Lyon Township was booming like never before, and it shows no sign of stopping. “We have at least five subdivisions going up within a three- to five-mile radius,” Frantz notes. That equates to nearly 3,500 new homesites in the township in a single year.
The turnaround has stabilized membership at Walnut Creek, but Frantz isn’t satisfied. “We’re up around 360 class-A golf memberships, but we can go as high as 399,” he says. To get there, Frantz and his public relations committee put together a plan to target the new communities sprouting up around the club. The crux of the effort was reaching out to the builders themselves and sending out numerous targeted postcards.
Of course, having a new pool of prospects to draw from is one thing, but converting them is another job altogether. The club’s facilities hadn’t been updated in some time, and Frantz knew attracting the young families pouring into the area would necessitate changes. To address what Frantz dubs “shortcomings,” Walnut Creek turned to the McMahon Group out of St. Louis for help.
Leaders from both organizations sifted through member surveys and conducted interviews to get a snapshot of where existing clientele felt improvements were needed. “We then looked at those results through the lens of some of the current trends in the industry,” says Frank Vain, president of McMahon Group.
That research pinpointed Walnut Creek’s food-and-beverage operations, its pool, and the health and fitness offerings as the areas most in need of updating. Using that data, officials created a master plan to address each of the concerns in phases.
Walnut Creek’s membership has already voted on and approved the first phase, which will fundamentally change how and where they dine. One restaurant will be overhauled to a more casual, pub-style eatery featuring plenty of televisions and a relaxed dress code. Meanwhile, the square footage of outdoor dining space will also be increased, and the formal dining area and locker room facilities will receive a significant upgrade.
It’s a good start, but Vain says Walnut Creek has more to do if it wants to capitalize on the influx of families to the area. “All clubs need to find ways to augment the golf experience,” he notes. The long-time industry veteran says people’s reasons for joining clubs have changed. “There used to be a level of attainment that drew people to join private clubs,” he says. “Today, families are looking for value.”
To this end, the next phase of Walnut Creek’s master plan will focus on the pool, tennis and fitness facilities. “We’re adding experiences that are useful to all members of a family, not just dad,” Frantz says.
While the master plan looks to attract new blood to the club, long-tenured members must also be considered. At Walnut Creek, the vast majority are on board. “Membership is thrilled, and they’ve all stepped up to support our plan,” Frantz notes.
Frantz is excited, too. When describing his vision for the club, the enthusiasm creeps into his voice. He mentions more clubhouse amenities, a large golf instruction facility, and then adds one last important detail: “Hopefully all that, and a nice, long waiting list.”
Kyle Darbyson is a Vancouver-based freelance writer.