UCLA FACULTY CENTER ASSN INC

THE ORGANIZATION'S MISSION IS TO MAINTAIN AND OPERATE FACILITIES IN ORDER TO ENABLE MEMBERS OF FACULTY, STAFF AND OTHER AFFILIATE MEMBERS OF THE UNIVERSITY OF CALIFORNIA, LOS ANGELES (UCLA) AND THE UNIVERSITY OF CALIFORNIA (UC) COMMUNITY TO MEET BOTH FORMALLY AND INFORMALLY, FACILITATING INTELLECTUAL, EDUCATIONAL, RESEARCH AND SOCIAL INTERACTIONS, IN ACCORDANCE WITH THE GENERAL GUIDELINES FOR SUCH CAMPUS ORGANIZATION AND UC CAMPUSES, SET FORTH BY UC PRESIDENT ROBERT FORDAON SPROUL TO THE UC BOARD OF REGENTS IN MAY 1949. This message will provide an update on the financial performance and strategic direction of the UCLA Faculty Club, as well as to reaffirm UCLA's commitment to supporting its operations. UCLA will cover all losses and debts incurred by the Faculty Club. This assurance reflects the university's continued support for the Club's operations and long-term sustainability. Since January 2025, UCLA Dining has assumed operational responsibility for the Faculty Club. From January through June 2025, the Club has generated a profit of $53,000, a result of focused efforts in three key areas. The Faculty Club's budget for fiscal year 2025-2026 projects a net profit of $374,000. Combined with the current positive cash flow of $180,000, the total projected fiscal year profit stands at $554,000. This positive cash flow will be strategically allocated toward reducing the Club's outstanding debt. Three key areas: 1. Labor Optimization Staffing levels have been actively adjusted to align with current business volumes. This includes optimizing shift schedules, cross-training staff to increase flexibility, and minimizing overtime. 2. Revenue Growth through Catering and Restaurant Sales Marketing campaigns have been launched to increase catering orders and in-house dining. These efforts include outreach to existing clients, limited-time promotions, and enhanced online visibility to attract new customers. 3. Expense Management All discretionary spending is under review. We are identifying opportunities to streamline operations and reduce overhead without compromising service quality. These measures are being implemented immediately and will be monitored closely to ensure continued progress toward restoring a positive fund balance. We remain confident in the Faculty Club's financial trajectory and are committed to maintaining transparency and fiscal responsibility.