John Haywood, Punch Bowl Social’s new CEO, says he likes a challenge.
Looking at his resume, that much is clear.
Haywood comes to the beleaguered eatertainment chain after a stint as chief executive at Garden Fresh Restaurants, parent company of Souplantation and Sweet Tomatoes restaurants, which declared Chapter 7 bankruptcy in May.
Before that, he worked for 12 years as an industry turnaround specialist.
So, just a few days into his new job, Haywood says he is prepared to face “a very tough 12 months” ahead for Punch Bowl Social but he is confident it will emerge on the other side.
“All of us in the industry have followed Punch Bowl Social over the years,” he said. “It’s been recognized as one of the most-innovative concepts repeatedly … There was nothing wrong with the concept before COVID. The world craved it before, the world is going to crave it even more coming out of COVID.”
As with all food-and-games operations, things have been rocky for Punch Bowl Social in recent months. Cracker Barrel, which had invested $140 million for a minority stake in the brand a year ago, backed away from the concept when the pandemic hit in March. Founder Robert Thompson, who resigned from the company earlier this month, was forced to close all 19 units and lay off nearly all employees. Punch Bowl’s lenders declared the chain in default on its loans.
Haywood and Thompson have been in contact.
“I actually spoke with him, even before officially taking this,” Haywood said. “He’s just extremely supportive and helpful.”
Currently, Punch Bowl has three open locations, with a fourth scheduled to open in about a week, Haywood said. The majority of units are slated to open toward the send of September, contingent on local coronavirus conditions.
“Our locations are all a little bit unique,” he said.
In Denver, for example, repurposed football turf was spread outside, topped with picnic tables and lights, to create an outdoor space. Socially distanced bowling is available.
“The bowling lanes have to be thoroughly cleaned in between users,” Haywood said.
Pre-pandemic, just about 10% of Punch Bowl’s sales came from gaming, with the rest evenly split between food and drink, he said. Open units are offering a pared-down menu.
Punch Bowl Social’s lender CrowdOut Capital has been especially supportive during this time, Haywood said.
“That’s the key thing that’s missing in the industry, is everyone working around the table to come together,” he said, adding that CrowdOut has indicated it understands there’s a rocky year ahead and that it wants to support Punch Bowl through these rough times.
Punch Bowl has a new location in process in Washington, D.C., which is on track to open next spring, Haywood said.
Thompson’s ambitious growth plans are on hold—for now.
“We just really want to focus on getting a great reopening,” Haywood said. “Making sure we do everything we can to keep guests and the team safe. I have no doubt we will restart growth … It’s a very unfortunate time for the industry. A number of concepts and independents will not reopen. There certainly cold be opportunities in that.”
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