Leisure: combining sport, music and drinks attracts investor attention  

Competitive socialising brings together activities such as tenpin bowling, crazy golf and darts in an immersive and contemporary environment. Increasingly, innovative offerings such as racing car simulators and social cricket are used to complement traditional activities and help maximise spend per head. Continued growth in the sector reflects the ongoing shift of consumer leisure spend away from traditional bars and clubs. Assets are coming to market and growth potential means they are often highly attractive for mid-market investors. 

A positive market in a challenging sector 

The sector has proven to be demand resilient (and growing) and supply-side dynamics are positive given a) the availability of large vacant spaces and b) the perception these businesses drive footfall for other retail/leisure spend. Many operators are also focusing on extensive food and beverage options alongside these activities, which is proving valuable. 

New site openings (domestically and abroad) clearly present the most significant opportunity to accelerate growth, but increasing utilisation, average spend per head and repeat visits are all key metrics and additional levers. 

Stay close to customers 

Effective marketing can be challenging; individuals booking on behalf of groups and a high number of walk-ins (vs online reservations) can result in a scarcity of customer data. Actively tracking preferences through dynamic feedback, health and safety forms and leveraging the shift towards online bookings are potential tools to inform marketing strategies. Clear evidence of tracking (and acting on) performance across channels (e.g. socials, search, PR) will give investors the comfort that the opportunity is being maximised. 

Mix it up 

It is important to stand out in this market; while dynamics are positive, indirect competition will always be a challenge for leisure spend. Typically, multi-activity will perform better than single-activity (i.e. bowling + ping pong + gaming versus bowling only). This is because multi-activity attracts a greater number of customers and ensures interest and occupancy are sustained.

Speak to a member of the team about opportunities in the leisure sector.  

Jack Hibbs

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+44 7883 296 346

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