Some smaller catering businesses aren’t much fun

Golf concepts are experiencing a decline in sales. | Photo: Shutterstock

Pent-up demand for recreation has led to a post-pandemic surge in new sports-themed dining and entertainment concepts, from establishments offering pickleball (The Pickle Pad, Smash Park, Camp Pickle), baseball (Batbox) or even cricket (Sixes Social). . Still, some newcomers to the field appear to be ready for a bench move.

Topgolf Callaway Brands, one of the more affluent players, says it may spin off its Topgolf golf-themed chain because of declining sales. Now there are indications from several smaller, leisure-inspired businesses that they are also feeling a downturn.

Here’s a look at two of these new additions, as well as a suggestion of where the eatertainment market might be headed.

Pinstripe losses are increasing

Losses at bocce ball and bowling chain Pinstripes widened to $9.3 million in the second quarter ended Oct. 13, with same-store sales falling 9.4%, parent company Pinstripes Holdings said last week with. The shortfall compares to a net loss of $7.3 million a year ago.

CEO Dale Schwartz said the 17-unit operation will continue its pursuit of increasing profits through $15 million in cost reductions at the corporate and unit levels. Food and beverage sales increased 9% to $21.1 million in the quarter, driven by four additional locations in operation. Revenue from bocce ball and bowling operations increased 4%.

Drive Shaft’s sales fell sharply

The Drive Shaft chain of golf-themed dining establishments said food and beverage sales at its 14 establishments fell 18.7% year-over-year to $10.9 million in the quarter ended Sept. 30.

The decline resulted in a loss for this business unit of Drive Shaft of approximately $8 million. Food and beverage sales at the 43 company-operated golf courses were essentially flat at $11.5 million. The company lost a total of about $3.1 million on revenue of $90.8 million, a decline of 9.5%.

New music concept sounds more pleasant

Despite the weakness seen in other sectors of the dining and entertainment market, at least one company remains optimistic in the music space. 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 additional restaurant concepts for its complexes. The two music venues currently operated by Venu include a Bourbon Brothers Smokehouse and a tavern.
The company, formerly known as Notes Live, said it plans to develop 10 of the sprawling music venues nationwide.

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