Drive Shack Inc (DSHK)

[Enterprising Investor]

Topgolf in New Orleans? Dallas-based fun palace eyeing expansion around U.S. (3/16/16)

The emails come pouring in to Zach Shor from all over the country. Many are from mothers, some are from elected officials, others from private developers. Each asks him for the same thing: a Topgolf in their city.

“You have no idea the kind of demand for an entertainment option like this,” said Shor, the Dallas-based company’s real estate development vice president.

Topgolf announced Wednesday that such interest is prompting an expansion of its high-tech, high-energy driving range concept into several more U.S. markets in the next few years. The firm is eyeing several areas including McAllen, El Paso, New Orleans and Albuquerque.

Three of the existing 24 locations are in Dallas, Allen and The Colony. A fourth North Texas location, in Fort Worth, is scheduled to open next year.

Topgolf is an entertainment complex that is part driving range, part bar and grill. Microchips are in the golf balls and track where players land them. Points are earned for accuracy and distance.

They’ve quickly become a popular place for first dates, corporate events, bachelor parties and family outings. Some Texas locations have the highest alcoholic beverage sales in their areas.

“It can be a lot of things to everybody,” Shor said.

The lead investors in parent company Topgolf Entertainment Group are North Texas investor Thomas Dundon, WestRiver Group, Callaway Golf Company and Providence Equity.

While the company will focus its expansion on the nation’s largest metropolitan areas, executives say that they’re also finding more demand and success than they originally expected in smaller markets. Shor said those cities are essentially “captive markets.”

“They don’t have a lot of entertainment options right now,” he said.

Topgolf started in the United Kingdom, where there are still three locations. It made its stateside debut in Alexandria, Va., more than a decade ago when the company converted a traditional driving range into a new location.

“It was a very, very different experience back then,” Shor said.

The Dallas location opened in 2007. The company then relocated here from Chicago in 2012 amid a large expansion in Texas. These days, most outlets are three levels, have more than 100 hitting bays and an extensive food and drink menu.

Shor said a lot of interest comes from cities that are nowhere near an existing location. But when someone visits a Topgolf while traveling, they return home to tell friends and co-workers about it. The buzz prompts the uninitiated to do a little Internet research, which often then leads to yet another email to Shor begging for a nearby location to be built.

“It’s really, really amazing to see how far reaching the concept has become,” he said.

http://bizbeatblog.dallasnews.com/2016/03/topgolf-eyeing-expansion-into-markets-across-u-s.html/