Layoffs are coming to Topgolf’s Dallas home base.
Artie Starrs, CEO of Topgolf, said in an earnings call last week the home-office support structure is being reorganized to prepare for separation, though he declined to offer details.
Parent company Topgolf Callaway Brands Corp. last year announced its plans to spin off the eatertainment brand, just four years after acquiring it. That “separation,” which will either be a spinoff or sale, is expected in the second half of this year.
Chip Brewer, president and CEO of Topgolf Callaway, said the Topgolf brand has been navigating a difficult operating environment, blaming “macro consumer and category” issues.
Same-store sales for the Topgolf brand were down 8% in the Dec. 31-ended fourth quarter, and down 9% for the full year. The chain ended 2024 with 100 units, all of which are company owned, as well as one location of BigShots that was acquired.
Still, Starrs said traffic improved through 2024 and was up at the larger three-bay locations during November and December, though guest spending declined.
So far this year, however, sales have been softer than expected, which Starrs blamed on weather and the Los Angeles wildfires.
Starrs said Topgolf needs to make “faster and bolder changes in how we go to market,” including offering new experiences for players, like the recently launched “Sonic the Hedgehog” and “Captain America” games, as well as more compelling and accessible value.
The goals for the restructuring are to focus leaders on driving sales, simplifying work for teams, and lowering the cost base, he said.
The company recently hired Erin Chamberlin as chief operating officer and Josh Belkin as senior vice president of revenue management and player engagement.
But Starrs said the company is also streamlining the home office structure “to better support our venues and run a more agile organization.”
Topgolf joins a growing number of restaurant companies making cuts to corporate staff, including Starbucks, Panera Bread, Dine Brands, Bloomin’ Brands and, most recently, Grubhub.
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