Dive Brief:
- Five Iron Golf, a 24-unit eatertainment chain, received a $20 million minority investment from Enlightened Hospitality Investments, Danny Meyer’s private equity firm, the company announced Tuesday.
- The funding will help the company accelerate growth and enhance its offerings, said Jared Solomon, CEO and co-founder of Five Iron Golf.
- The investment follows the opening a 16,390-square-foot flagship Five Iron Golf location in New York City — its sixth New York location — that offers 15 golf simulators, two full-service bars and lounge areas that feature air hockey, billiards and shuffleboard.
Dive Insight:
Investors are becoming increasingly interested in burgeoning and established eatertainment chains now that social dining is back in full force. The segment faced significant headwinds early in the COVID-19 pandemic during dining room lockdowns, which led Punch Bowl Social to declare bankruptcy. Now, the segment is undergoing a boon, with more diners seeking out social and experience-based dining.
Ongoing investor and consumer interest could help Five Iron grow in the years to come. The company plans to open additional flagship and franchised locations, per the press release.
“The investment from EHI propels us into an era of growth and innovation,” Nora Dunnan, Five Iron’s co-founder and chief development officer, said in the press release.
The concept, which features golf simulators, also offers golf enthusiasts and novices a cheaper way to practice the sport than paying hefty fees at golf courses. A typical golf club membership costs about $6,000 per year. At the newly opened location in Grand Central in New York City, a party of four can book a half hour reservation for as little as $35.
Rival eatertainment chains are experiencing similar tailwinds. Punch Bowl Social founder Robert Thompson secured $200 million last summer to fund his new pickleball concept Camp Pickle. Other pickleball concepts like Electric Pickle have also seen increased interest from investors. Emerging concept Level 99 received an investment from Ron Schaich’s Act III Holdings, and a new private equity firm, Emerging Fund, is exploring an investment in eatertainment brands like F1 Arcade, according to Restaurant Business. Level 99, which opened its first location in Boston, opened its second location in Providence, Rhode Island, in January.
In 2022, Puttshack raised $150 million to fund growth in the U.S. and Pinstripes went public through a SPAC deal early this year. Both Pinstripes and Puttshack garner average unit volumes of over $8 million. These concepts have charted paths for growth, with Pinstripes forecasting the potential to reach 150 units as a public company. Pinstripes expects to grow from 14 to 23 units this year. Puttshack opened its 14th unit in the U.S. and its first in Kentucky last month.
