Dive Brief:

• Dave & Buster’s is boosting customer experiences through a combination of accelerated store remodels, service and IT upgrades, executives said on a Q1 2024 earnings call last week. 
• The company plans to accelerate the pace of store remodels so that 35% of restaurants are upgraded by the end of 2024, according to CEO Chris Morris. This company plans to revamp the entire system by 2026, part of an effort to deliver a better dining experience.
• Dave & Buster’s recorded a year-over-year increase in customer satisfaction scores for its amusement offerings despite testing out higher price levels, Morris said. Even locations with the biggest price jumps earned better satisfaction scores.

Dive Insight:

Dave & Buster’s believes remodels and service improvements, as well as higher arcade prices, will help the company improve its business performance. The company also updated its menu with at least 20 food and drink items in April as part of its multi-phased strategy to improve operations and the guest experience.  The next phase of its menu overhaul will roll out in August, Morris said. That phase will focus on beverages and special event menu.

While customer satisfaction scores were up, sales at restaurants open at least one year were down 5.6% in Q1 2024 compared to Q1 2023. 

One potential path to bring in more sales without harming CX is through the arcades.

Customer satisfaction improvements show there is room to increase prices without harming CX, according to Morris. The company is considering a flexible pricing model pilot for its amusement category toward the end of the year, which could help the business attract customers during off-peak periods. 

While simple price increases may not harm customer satisfaction, more complex changes could turn off potential gamers. Wendy’s faced significant backlash after it announced plans to pilot dynamic pricing on digital menu boards. 

Dave & Buster’s rolled out a new menu and service model during the quarter with the goal of elevating the customer experience. The initiatives are still in their early stages, but the company has already recorded improvements to speed of service and customer satisfaction scores. 

“We strongly believe that the best way to grow this business is through elevating the experience that happens in the four walls of every one of our stores,” Morris said during the call. “I truly believe that the combination of the food and beverage menu and the new service model will continue to gain momentum as we move forward.”

Dave & Buster’s is upgrading its IT infrastructure, too. Initiatives included in-store Wi-Fi and upgraded payment processors, which improved the customer experience while enabling more efficient operations, Morris said.