Jimmy Chen's Treasurer's Report
Overall, the Treasurer's Report told members very little. As has been the trend at City Tatts in recent years, most of the important financial problems were ignored or explained away with lame excuses.
But Jimmy Chen showed that he has fully embraced the concept of disinformation to members with his latest report. His comments about how the Club's restaurants and bars performed can not be left unchallenged.
What Jimmy Chen told members
In his report, Jimmy Chen said "It is pleasing to report that Food and Beverage revenue has recorded year on year growth for the past seven (7) years. For 2011 our Food and Beverage departments increased revenue by 1% or $68,000." That's it - that was his only reference to Food and Beverage.
How Food and Beverage actually performed in 2011
These are the the facts of how Food and Beverage performed at City Tatts in 2011, which emerged only because members specifically demanded the information under the Club's Rules:
- Food and Beverage at City Tatts lost $650,000 in 2011.
- The Esperanto restaurant lost $400,000 in 2011. That is not a misprint - it actually lost $400,000. In fact, it managed to lose $409,000 on sales of $919,000. When you realise that they have no rent to pay, that might make it the worst restaurant performance in Sydney. Obviously, looking at these figures would cause anyone to question management's ability, to put it mildly. But we have checked with people in the restaurant trade and they have told us that even total stupidity would not produce results this bad. And Jimmy Chen? He doesn't even mention it. Maybe he doesn't know.
- Zest restaurant lost $300,000 in 2011.
- They even manage to lose money on beverage. The Esperanto managed to lose $105,000, and Zest managed to lose $82,000, on beverage alone ! Since the Club would charge customers, on average, twice or even three times it's cost price, this also must be some kind of record for losing money.
- Remember, they "had to" close the Smorgasbord because it was losing money. In the three years that Jimmy Chen has been Treasurer, the Club's top two restaurants have lost a combined $2,200,000 !
- The other notable point about the Esperanto and Zest is that they are not cheap. If the meals were being given away at half-price you could understand some losses. But they are charging top dollar for everything, which makes these losses all the more inexplicable.
To tell members that revenue has risen and make no mention of the horrendous losses during the year, or indeed for the past seven years, is a disgraceful attempt to mislead members. Besides, what is the point of increasing revenue if you are losing money on every meal?
Save City Tatts Committee