Dive Brief:
- Dave & Buster’s plans to maintain its in-restaurant CX strategy despite the resignation of CEO Chris Morris, said Kevin Sheehan, chair of the board and interim CEO, during a Q3 2024 earnings call Tuesday.
- The chain began making improvements to its service model in Q1 2024, which have thus far proven successful, according to CFO Darin Harper. Guest satisfaction scores are up 6 points year over year in Q3 2024.
- Sales remained weak despite rising customer satisfaction. Revenue was down 3% year over year to $453 million for the quarter, while comparable store sales fell 7.7% year over year, according to a company earnings release.
Dive Insight:
Dave & Buster’s plans to maintain its current strategy, including its CX upgrades, as the company searches for a permanent CEO, according to Sheehan. Morris developed the plans in tandem with the restaurant chain’s board of directors, and Sheehan said he has “a tremendous amount of confidence” in the initiatives.
Efforts like store remodels are showing promise at individual stores, but Dave & Buster’s overall performance has been on the decline for the entire fiscal year.
The company remodeled 11 locations during the quarter and is on track to have 44 completed by the end of fiscal 2024, according to Harper. This puts the company on track to meet its goal of updating more than one-third of its locations by the end of the fiscal year.
Remodeled stores in aggregate outperform legacy locations, and executives believe they will drive traffic and sales growth in the future. However, each Dave & Buster’s store is a “snowflake” with distinct needs, and the company is still exploring the full potential of the program, according to Sheehan.
“It is also important to note that we are still in the early stages of this effort, and we expect to see additional benefits as we progress on our remodel journey,” Harper said during the call. “Our rollout plan underscores our commitment to transforming the Dave & Buster's experience across our entire system.”
The restaurant company will also optimize its loyalty program, which reached over 7 million members during Q3 2024, up from 5.4 million in Q3 2023.
Loyalty members visit 2.5 times more often than other customers and spend more per visit, and Dave & Buster’s aims to grow the program while improving its value for existing members, according to Harper.
