
Chris Morris has resigned as CEO of Dave & Buster’s Entertainment, operator of the Dave & Buster’s and Main Event eatertainment chains.
The company said Morris had stepped down to pursue other opportunities. But it revealed that a search for his replacement has been underway for months.
Until Morris’ permanent successor is named, Chairman of the Board Kevin Sheehan will serve as interim CEO, the company said.
Morris’ resignation was announced hours before the company posted a net loss of $32.7 million for the third quarter ended Nov. 5, compared with a year-ago shortfall of $5.2 million.
Same-store sales for the period declined 7.7% across the two brands, eroding corporate revenues by 3%, to $453 million.
Morris had been CEO for about 2.5 years. Sheehan had held the post on an interim basis before Morris was appointed to the position.
Morris did not participate in the conference call with financial analysts that followed the release of the company’s quarterly results.
Sheehan told the analysts that he does not intend to upend the turnaround plan Morris and the board had hammered out months ago.
“The Board worked closely with Chris to create our company’s strategic direction and has the utmost confidence in this management team and the company’s strategy,” Sheehan said in his prepared remarks.
The pledge of confidence drew pointed questions from some of the analysts.
“He left, but the plan remains,” said one. Why does management expect different results with Morris gone?
Sheehan replied that the strategy is sound, but “this plan requires a forward-looking leader” who’s completely sold on the approach. He mentioned that the ideal hire would be committed to the sort of menu and entertainment innovation that Dave & Buster’s is embracing to improve customers’ dining and game-playing experiences.
He also stressed that a strong hire would be able to implement those advances on a widespread basis.
The company operates 168 Dave & Buster’s food-and-games facilities and 60 similar facilities that function under the Main Event brand name.
The company, like many eatertainment specialists, has been struggling since traffic spiked immediately after the pandemic. That upswing was attributed to pent-up consumer demand for socializing and experiential forms of entertainment following the isolation of the COVID crisis.
Dave & Buster’s is striving to win back patrons by updating its cavernous facilities with new games and alternative ways of enabling customers to access the brands’ food and beverage offerings.
Group bookings are a major part of the eatertainment operations' business. Management said a new banquet menu is being rolled out, but did not reveal how the bill of fare has changed.
Company officials also noted the positive effects of bolstering managerial supervision at stores.
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