Dive Brief:
- Punch Bowl Social acquired two eatertainment concepts, Sweet Tooth Hotel in Dallas and Voicebox Karaoke, which has two units in Portland, Oregon, the company said in a press release emailed to Restaurant Dive.
- The company also acquired Lyrical Systems, a karaoke software developer for Voicebox, and other karaoke concepts.
- The acquisitions are part of Punch Bowl Social’s strategy to expand the variety of entertainment it can offer guests in order to boost engagement. The deal “allows it to serve guests in each eatertainment vertical,” the company said.
Dive Insight:
Punch Bowl Social, which is opening its newest location in Columbus, Ohio, in the fall, said it is actively looking for new locations and markets to expand its brands. The addition of Sweet Tooth Hotel, an immersive art experience, and Voicebox Karaoke, which offers private suite-based karaoke, gives Punch Bowl more flexibility with its real estate strategy. Punch Bowl requires about 25,000 square feet for each location, while the other two concepts only need about 5,000 square feet.
“With these acquisitions, we’ve been able to create a unique, market-leading platform for immersive, experiential fun that resonates with our audience,” Punch Bowl co-founder and executive chairman Robert Cornog said.
The eatertainment company has incorporated the leadership of the acquired businesses into its corporate team, marketing and IT, the press release said.
The acquisitions show that the chain is ready to grow after a tumultuous time during the COVID-19 pandemic, which included a bankruptcy declaration and the departure of CEO Robert Thompson in 2020. Punch Bowl Social was acquired out of bankruptcy for $32 million by CrowdOut in 2021. It quickly reopened about a dozen units, according to FSR Magazine. The company relaunched its menu and tested new concepts within existing Punch Bowl locations and by the end of 2022, it was nearing pre-pandemic sales numbers, FSR reported. It currently has 14 locations, according to its website.
