Pent-up demand for recreation has stoked a post-pandemic surge in new sports-themed eatertainment concepts, from facilities touting pickleball (The Pickle Pad, Smash Park, Camp Pickle), baseball (Batbox) or even cricket (Sixes Social). Yet a number of entrants in the field look ready for a benching.
Topgolf Callaway Brands, one of the deeper-pocketed players, says it may spin off its Topgolf golf-themed chain because of shanking sales. Now come indications from several smaller recreation-inspired operations that they’re similarly feeling a downturn.
Here’s a look at two of those entrants, as well as a suggestion of where the eatertainment market may be heading.
Pinstripes’ losses deepen
Losses for the Pinstripes bocce-and-bowling chain deepened for the second quarter ended Oct. 13 to $9.3 million, with same-store sales falling 9.4%, parent company Pinstripes Holdings said last week. The shortfall compares with a year-ago net loss of $7.3 million.
CEO Dale Schwartz said the 17-unit operation will continue its quest to improve profits by cutting $15 million in costs at the corporate and unit levels. Food and beverage sales for the quarter rose 9%, to $21.1 million, the result of having four more locations in operation. Revenues from its bocce and bowling operations rose 4%.
Drive Shaft’s sales shank sharply
The Drive Shaft chain of golf-themed eatertainment outlets said food and beverage sales at the 14 facilities fell 18.7% year over year during the quarter ended Sept. 30, to $10.9 million.
The decline resulted in a loss for that segment of Drive Shaft’s business of about $8 million. Food and beverage sales at the 43 golf courses run by the company were essentially flat, at $11.5 million. The company lost about $3.1 million overall on revenues of $90.8 million, down 9.5%.
New music concept sounds a pleasanter tune
Despite the softness evident in other sectors of the eatertainment market, at least one music-themed operation remains bullish on the market. Venu Holding Corp., an operator of facilities in Colorado and Georgia, has raised $13.8 million in development capital through an initial public offering of nearly 1.4 million shares at $10 each.
The company said the proceeds will be used in part to develop more restaurant concepts for its complexes. The two music centers currently operated by Venu both include a Bourbon Brothers Smokehouse and Tavern.
The company, previously know as Notes Live, said it intends to develop 10 of the sprawling music facilities nationwide.
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