This is an English adaptation of a FoodBud historical article originally published on October 10, 2022.
Dave & Buster’s is one of the notable listed foodservice companies in the U.S. market, with a format that combines food, drinks, arcade-style gaming, sports viewing and other entertainment under one roof.
The model was hit hard during COVID-19. In the second quarter of 2020, same-store sales fell 87% year on year, and the company laid off more than 1,300 employees. At the time, some market observers thought the company might fail. It survived, returned to strong financial performance, and in 2022 moved to expand its customer base through acquisition.
As of the article’s publication period, Dave & Buster’s market capitalization was USD 1.54 billion, about RMB 11 billion.
The first Dave & Buster’s opened in Dallas, Texas, in 1982. From the beginning, the brand positioned itself around an integrated “eat, drink, play and watch” experience.
Its revenue mix in 2021 reflected that positioning:
Within food and beverage revenue, alcoholic beverages accounted for 32%, while food and non-alcoholic drinks accounted for 68%.
The stores also use large screens and high-quality audio systems to support sports viewing and other immersive programming.
Dave & Buster’s core customer group is adults aged 21-39. In 2021, this group accounted for more than 60% of customers, while families accounted for 40%.
Brian Jenkins, Dave & Buster’s CEO during the pandemic period, led the company through the crisis and helped restore record financial performance. He retired on September 30, 2021, and board chair Kevin Sheehan took over as CEO.
In April 2022, Dave & Buster’s announced an agreement to acquire Main Event for USD 835 million. Main Event operates indoor entertainment venues with activities such as bowling, climbing and mini golf. The deal expanded Dave & Buster’s into a more family-oriented customer segment. Main Event CEO Chris Morris was also set to become CEO of the combined company.
The positioning contrast was clear: Dave & Buster’s mainly targeted younger adults, while Main Event focused more on families.
Main Event’s own revenue mix included 29% from food and beverage. Its customer base skewed more female, at 60%. By age group, 25-34 was the largest segment at 31%, followed by 35-44 at 25%.
Large-format location-based businesses were severely affected at the start of COVID-19.
Main Event had 51 stores as of May 2022. Its performance was hit hard in 2020, but net revenue rebounded sharply in the nearly one-year period ended May 2022, reaching USD 400 million. In 2019, Main Event’s net revenue was USD 300 million.
Even with the impact of the Delta variant in 2021, Main Event’s same-store revenue continued to grow. Same-store revenue declined year on year in December 2021 during the Omicron wave, but year-on-year growth was strong in other periods.
Dave & Buster’s experienced a sharper revenue collapse in 2020. Net revenue was USD 1.36 billion in 2019, then fell to USD 440 million in 2020. By 2021, it had already recovered quickly. As of May 2022, Dave & Buster’s had 145 stores.
By July 2022, Dave & Buster’s had 148 stores, while Main Event had 52 stores.
Dave & Buster’s and Main Event both operate large-format venues and benchmark themselves against destination entertainment players such as Disney parks and Universal Studios.
Dave & Buster’s uses three store-size models:
Main Event stores are around 50,000 square feet. Average unit revenue is USD 8.5 million, with unit investment of USD 9.3 million.
Dave & Buster’s unit economics by format:
As of January 30, 2022, Dave & Buster’s operated 112 large stores, 21 medium stores and 11 small stores.
In the latest quarterly earnings call referenced by the article, Dave & Buster’s loyalty program had more than 4 million members. Members contributed 5% of sales, and their average spend was 33% higher than non-members.
The company also mentioned traffic from OpenTable, the restaurant booking platform owned by Booking Holdings. Around 56,000 customers booked through OpenTable. Some of these guests may not have originally considered Dave & Buster’s when looking for a venue, suggesting that reservation platforms can serve as a meaningful discovery channel.
For operators, the broader question is how dining formats such as coffee, hot pot, barbecue and bars can be combined with entertainment occasions. Whether in China or international markets, social entertainment formats for younger consumers remain an area worth studying.
Note: Market value, acquisition price, store counts and operating figures are historical figures from the 2022 source article.