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Entertainment Social Arena #2 - Social Entertainment Round Up: Part 2
Investors should note the rapid growth of social entertainment, with a focus on gamified and AR-enhanced activities like darts, mini golf, and pool, exemplified by brands such as Flight Club, Puttshack, and Topgolf. Funding for innovative concepts like AR pool (PoolHouse) and immersive tech is rising, indicating strong investment interest. The golf simulation sector shows high demand but also volatility, with some closures highlighting sector fragility. Hospitality-driven “Eatertainment”, blending food, drink, and social gaming, is expanding globally, especially in regions like the UK and Middle East. Overall, social gaming integrated with hospitality presenting robust growth opportunities for investors seeking experiential revenue streams.
This is the Entertainment Social Arena, issue Number 2, social Entertainment Roundup, part 2, by Kevin Williams. Welcome to the second Entertainment Social Arena, more commonly referred to as social entertainment. Other terms have come to embody the environment that blends hospitality, entertainment and social engagement. We will define them all here. The popularity of darts in its new gamified social colours has been evident across the social entertainment landscape. Following National Darts Day in April and venue leader Flight Club Darts was celebrating its 10th anniversary. Owned by State of Play, owner-operators of the Bounce Flight Club and Hijingo Chains, the operation saw revenue jump by 33% in 2024 to £47 million, the UK accounting for £15 million, franchise partner and operations overseer Red Engine that works with State of Play on their electric shuffle and flight club chains reporting seeing fourth quarter sales of £25 million, up 24% year-on-year. Beyond these custom gamified darts platforms, we have seen platform providers dominate the sector with standalone solutions for operators. One of the leading providers is 501Fun with the interactive and AR-empowered dart system. Other providers include Lasertron in the States with their successful game and enclosure slash ordering platform, and European developer Social Gaming. Along with numerous soft-nose darts systems employed in the amusement sector, such as Darts Live, released by Sega Japan, with a dedicated tournament and champion feature. Along with systems from Western developers such as Dart C, as well as Team Games' iSteel Darts system, the platform employs a connected platform for enhanced gameplay. Regarding the Asian sector, a new social entertainment space opened in Osaka with a strong darts theme With DICE, the facility offering gamified darts employing the Darts Live 3 system from Sega, along with amusement, karaoke, relaxation rooms and Net Cafe. With F&B. The site is a new concept from the Net Cafe operator, jumping on the popularity of social entertainment in offering a space for groups to gather round the already proven formula of darts.
Speaker 1:While the UK saw the launch last year of the Arrowheads destination darts venue in Norwich hoping to. While the UK saw the launch last year of the Arrowhead's destination Darts Venue in Norwich hoping to ride the popularity in the traditional sport, the application of gamification and even immersive technology to traditional tavern and bar games is not a new approach for the competitive socialising scene. But April saw the announcement of a new development in this approach In a big announcement from the originators behind Topgolf and Putshack revealed the plans for their next outing into the market with the launch of Pool House. Having raised $34 million, the new venture is reported as being an augmented reality AR pool entertainment space supported by hospitality and an engagement environment, all under a patent for pool table incorporating detection, security and sensing. The flagship 21,500-square-foot venue is set to open in Liverpool Street, london, at later in the year. The funding will see the rolling out of the first site later in the year.
Speaker 1:Ar-based projection mapped tables have been reported on by the Stinger Report, the sister publication to Entertainment Social Arena. As far back as our 2018 Reporting from the Asia Amusement and Attractions Expo AA in Guangzhou, we saw the first commercial projection mapped billiard tables. More recently, we have seen consumer systems such as Projection Pro billiards offering home projection training platforms. We have even reported on projection mapping applied to other traditional games such as foosball and ping-pong, as seen with Bounce's Ping-Pong X system. We can expect more venues to roll out XR-infused games to support growing player needs.
Speaker 1:Understanding the brands associated with these developments, we report on Putshack, the tech-driven mini-golf and dining concept operating some 20 units, 16 of which are in the US. It plans to open three new venues in 2025. The chain averages 11 million to 12 million average unit volume AUV, with an interesting 25% store-level margins. Understanding this revenue, we see 55% coming from food and beverage, two-thirds of that being alcohol. The operation revealed recently they had raised over $100 million in equity while securing a $150 million facility with BlackRock, all intended to drive growth of this operation. Regarding Topgolf, the chain has been in upheaval as it divests itself from Callaway, having seen significant layoffs of corporate staff towards spin-off or a possible sale of the chain of the tech-infused golf shooting ranges with hospitality. The operation also includes the Topgolf Swing Suite golf simulation venues, comprising some 117 facilities. These venues have also seen growth in the market, with recently installing a site at Chukchansi Gold Resort and Casino in Corsegold, california. This latest installation offers high-tech simulators inside a luxury lounge with F&B.
Speaker 1:Another operator looking to branch out into new directions is Five Iron Golf, well known as the leader of the golf simulator venue operation. For some time the chain has been experimenting with broadening the entertainment offering. It was revealed in April that Five Iron Golf would be rolling out a version of their venue that would comprise a FEC element. The company has been experimenting with their Detroit bowling concept incorporated into test sites alongside the traditional golf simulation bays. Now the operation confirmed the launch for later this year of a five-iron golf that will comprise a first-of-its-kind family entertainment center incorporated into the space Planned for Shaker Heights, ohio. This venue will have the newest version of the company's duck-pin concept, along with an 18-hole indoor-outdoor miniature golf course alongside simulator bays. This will mark one of the biggest evolutions of a single social entertainment chain, what has been called a major evolution for the brand, as they broaden their offering to increase revenue and dwell time. An interesting aside the new 5-iron golf slash FEC hybrid concept will be located in a site previously occupied by the smaller golf simulation chain, 1899 Golf and Social Club. Originally opened at the Shaker Heights location in 2023, the site closed just under two years later, leaving the chain with two remaining venues. The site closed just under two years later, leaving the chain with two remaining venues.
Speaker 1:A salutary tale of the churn in the golf simulation sector that has seen incredible highs, with a glut of new venues opening across North America, riding the popularity of the social entertainment and golf simulation market, but also revealing the fragility of this sector and the need to make a distinctive impact on the audience to ensure repeat visitation. The churn in recent golf site closings reflects a greater ferment in the restaurant and bar scene. Hospitality, driving, eat-attainment the definition of social entertainment is married to food and beverage. While these elements are important, achieving the right mix and building the right menu now sees many investors looking at entertainment as the special source for their business. At the time of writing this coverage for ESA, we have just returned from reporting about the Bar and Restaurant Expo in Vegas, a perfect microcosm of the investment being made by the hospitality trade to embrace the audience's new hunger for social entertainment. While new brands look to open dedicated spaces offering competitive socializing, other brands look to incorporate an element of this entertainment into their mix. Other brands look to incorporate an element of this entertainment into their mix.
Speaker 1:Regarding social entertainment, feather Fern PR, a specialist food, drink, hospitality and tourism PR agency, carried out a study into the UK hospitality sector a sector that now generates over £90 billion annually, employing 3.5 million people and in this study reported that competitive socialising saw a surge of 28.9% in popularity, reflecting the demand for experience-led hospitality. These developments encouraged existing hospitality chains to look at galvanising their businesses to embrace an entertainment component. One such has been Marston's Pub Chain in the UK, who revealed the opening of the new Grandstand concept, the first opened in Gospel Oak. The original pub has been converted into a sports pub approach for watching live fixtures, but also offering a strong entertainment element, including a competitive social element through pool and darts. While none of the entertainment elements offered at Grandstand have been gamified, such as seen with AR darts or interactive shuffleboard, this model does feed on the social, food and fun approach to hospitality.
Speaker 1:Mixing pub and club environments with a gamified offering was also revealed during attending the Dubai Entertainment Amusement Leisure Deal Expo in the UAE.
Speaker 1:This leading trade show, along with the amusement and attraction products and services, showed the clearest investment towards social entertainment for the region, as covered in the Stinger Report.
Speaker 1:One of the leading exhibitors was Amusement Services International, asi, who set aside a part of their pavilion booth towards representing competitive socialising platforms for operators to consider. Asi's interest in social entertainment goes far beyond just selling the platforms, but also getting directly involved in new ventures, the operation having played a prominent role in the launch in Dubai of Hush AH. This 750-square-metre exclusive licensed venue is home to the first duckpin bowling in the Middle East, along with augmented reality shuffleboard and AR darts, offering cocktails, whiskey and cigar lounge through its unique license allowing it to be open from 12pm till 2am on weekdays. The wholly owned property, part of the social district area 22, various food outlets. This is a new move for the region in embracing the hospitality entertainment model beyond more traditional FEC and LBE venues and is joining in this sector competitive, socialising properties such as Swingers and Activate that have been recently opened as franchises in this region. With the changing in the liquor laws and growing interest from the local audience for hospitality engagement, more properties are expected to dip their toe into these waters.
