Topgolf struggles with its swing as rival eatertainment brands pull ahead

Shanking the drive… Topgolf, the gamified driving range and casual resto, has landed in the rough. Last month it reported its fourth straight quarter of sales declines, with same-range sales falling 8%. US sales also worsened in July, dropping 11%. To correct its swing, parent company Topgolf Callaway (which also sells high-end clubs) last week said it planned to spin off its driving-range biz about four years after combining. FYI: it’s an odd time for Topgolf to be racking up bogeys, as golf’s experiencing a nationwide boom. Course construction is up, and a record 531M rounds of golf were played last year in the US.

• Bunkers: Individuals and corporate groups have balked at Topgolf prices, which can reach $150+ during peak hours. Plus, competitors like Drive Shack and Tiger Woods-backed PopStroke have pulled away some customers.

• Mismatched: When Callaway agreed to buy Topgolf in 2020 it saw potential to attract new golfers (half of Topgolf customers didn’t golf). But the two businesses — one a club maker and the other essentially an arcade — struggled to mix.

Eatertainment’s still on the green… Others in the “dinner plus something else” business have seen more work happy hours. Dave & Buster’s shares rose after it reported earnings earlier this week, with revenue up 3% on the year. It also recently added a new potential revenue stream, allowing friends to bet on their Skee-Ball performance. Meanwhile, lane leader Bowlero last week reported a 7% bump in same-store sales. The bowling kingpin’s summer subscription pass earned it $6M+.