Dave & Buster’s Entertainment Inc. sales are slowly but steadily improving after a weak second quarter, when same-store sales declined 87%. In August, sales were down 75% and by September sales had decreased by 62%, according to the Dallas-based eatertainment company’s latest business update.
After a round of 1,300 layoffs across seven states reported in September, Dave & Buster’s is continuing to reopen stores: As of October 4, 98 of the company’s 136 stores had reopened (84 of which reopened in August) and one new store has opened. Additionally, the 81 comparable stores open in September performed at 65% of their 2019 revenues.
Dave & Buster’s predicts that their EBIDTA will break even at 50-55% of 2019 same-store sales levels.
“The progress we’ve made reopening stores and driving sales recovery demonstrates the enduring strength of the Dave & Buster’s brand and the loyalty of our guests across the country,” Brian Jenkins, Dave & Buster’s CEO, said in a statement. “We remain optimistic that we will emerge from this challenge in a stronger competitive position to deliver fun to our guests and value to our shareholders.”
According to the company’s latest investor presentation, Dave & Buster’s key strategy at this point in the pandemic is to reopen stores effectively and safely and to stick to a lean operating model with tightly managed store expenses. Store-level changes have included the reduction of managers and menu streamlining.
Moving forward, Dave & Buster’s has said their strategy includes using technology to improve their business model, refresh their menu and games offerings, and amplify their digital marketing reach.
The company plans to reopen the rest of their closed stores by the end of 2020.
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