Dive Brief:
- Dave & Buster’s is balancing experience improvements against cost savings as the restaurant chain continues to remodel stores, improve speed of service and upgrade its technology, CEO Chris Morris said on a Q2 2024 earnings call Tuesday.
- The test of on-premise sales managers who tailor the customer experience at individual stores across 70 locations is showing promising results, according to Morris. The sales managers helped drive year-over-year growth during Q2 and early Q3 in the high single digits.
- Dave & Buster’s loyalty program is approaching 7 million members, with active members growing year-over-year, according to Morris. Loyalty members visit restaurants 2.5 times more frequently and spend 15% more per visit on average than non-loyalty members.
Dive Insight:
Dave & Buster’s customer experience strategy is boosting overall performance, but the company’s same-store sales remain negative. As a result, the restaurant chain is working to improve customer satisfaction while keeping costs low.
Revenue in Q2 grew 2.8% year-over-year to $557 million, but same-store sales fell 6.3% for the same period. High-quality experiences will help drive better same-store sales growth in future quarters, but the company is still keeping an eye on the bottom line, according to Morris.
“We are proud that we've been able to cut costs and improve margins, while simultaneously improving our guest satisfaction metrics, which is not always an easy balance to strike,” Morris said during the call.
Tech is one area where the company is making investments for long-term benefit, including improvements to customer-facing and backend technology.
Dave & Buster’s sped up service with OneDine server tablets, which enable servers to place orders and close out checks on the go. These devices rely on good wireless connectivity to deliver service improvements.
The chain is also exploring how it can better analyze its growing loyalty database to develop its offerings, and working on features for the Dave & Buster’s mobile app that will improve engagement before, during and after visits, according to Morris.
Dave & Buster’s is emphasizing a good employee experience as it makes improvements. Sales managers, general managers and other frontline workers all have a significant impact on the customer experience.
“There is a positive ripple effect in the way that we treat our team members, to how they treat each other, to how they serve the guests, to how that environment manifests in our stores, making them an enjoyable place for friends and families to create memorable experiences,” Morris said.
