Dive Brief:
- Dave & Buster’s is revamping the dining experience and improving its data capabilities as part of a set of growth initiatives, CEO Chris Morris said on a Q3 2023 earnings call Tuesday.
- The restaurant has embarked on a major remodeling project that aims to refresh the chain’s look and enable greater efficiency, according to Morris. The company plans to complete 40 to 45 remodels by the end of 2024, with most of the stores refreshed by 2026.
- Dave & Buster’s will use data processing improvements to enhance its loyalty program with additional personalization opportunities. The restaurant’s 5.4 million loyalty members currently visit more than 50% more often and spend about 15% more per visit than other customers, according to Morris.
Dive Insight:
The majority of Dave & Buster’s restaurants have remained essentially unchanged for more than a decade.
While the current model has been reliable, Dave & Buster’s expects new layouts, along with greater usage of loyalty data, to improve the customer experience and grow its customer base.
“After significant research and analysis, we have designed a remodel program that not only improves the physical appearance of our stores, but also represents the culmination of an interrelated strategic reset in how we will run our business more efficiently and better meet the [needs] of our guests,” Morris said on the earnings call.
The first refresh of a store in Friendswood, Texas, exceeded expectations, according to Morris. The location is experiencing more loyalty sign-ups than the average Dave & Buster’s, and the NPS for the restaurant is up 15 points with double-digit sales growth.
Encouraging rapid loyalty growth is part of the chain’s emphasis on growing its customer database. Morris noted that tests are underway to help the company determine how to better use this information to serve returning diners and newcomers alike.
“We're going to be able to deliver a service model that's tailored for the guest and [be in] a better position to deliver personalized messages to the guest,” he said. “We clearly see an opportunity to build out our loyalty platform and, as we do that, to improve both sides of it: the service model as well as our marketing performance.”
The company has also completed the roll out of OneDine server tablets, according to Morris. This will enable servers to place orders and close out checks on the go to enable faster dining experiences
