Topgolf could save golf, but not as we know it - Yahoo Finance (Video autoplay)

[nevets88]

http://finance.yahoo.com/news/topgolf-could-save-golf--but-not-as-we-know-it-173806675.html;_ylt=AwrTWf1efpBUCQ4AdlSTmYlQ

Quote:

Topgolf originated in England, where a pair of golf-loving twin brothers sought a way to liven up driving-range sessions with some competition.

Now, there are 13 Topgolf locations -- three in the U.K., 10 in the U.S., concentrated in the Sun Belt -- and 11 more are under construction.

May calls Topgolf "bowling for cool people," and indeed there are similarities to bowling, which can be enjoyed as a social gathering by novices as well as by avid bowlers who compete hard. He says only a quarter of Topgolf customers are "serious" golfers, defined as those who play at least once a year.

May says there is room in America for about 100 thriving Topgolf centers, and he plans to get there over the next seven or eight years. At that point, or even before, the company could certainly entertain the idea of going public, though May won't explicitly say what he foresees ultimately for Topgolf.

Even if the chain isn't trying to be the savior of golf, it could well end up helping to resurrect Callaway's financial fortunes. Callaway owns just under 20% of Topgolf, having invested a total of $42 million in separate stages. The company's CEO, Chip Brewer, is on the Topgolf board. A Callaway spokesman says the company views Topgolf mostly as an attractive investment with some limited opportunities for business synergies.

[mvmac]

Interesting, had no idea Callaway owned a piece of Topgolf.

I've never been to one, is Callaway promoted at the Topgolf locations?

[Abu3baid]

The place looks so cool....  I wonder if it could survive in a place like the middle east where people aren't as aware of a game called golf to begin with?  It would probably do well in the UAE and Qatar/Bahrain where there is a very large Euro and US expat base.. probably not as much in KSA although, I wouldn't rule it right away..

[ghalfaire]

There is one here in the East Valley of the Phoenix metro area.  I believe it is in the Gilbert, AZ city limits.  I drove by it the other day and the parking lot looked full.  I didn't have time to stop and see what is going on there but obvious they have a multi deck driving range like in Japan. But someday soon I'll stop and take a look when I get some time.

[turtleback]

Have they looked at the decline in the bowling and billiafd industries?  Using them as a guide for their business model seems, uh, optimistic.

[AmazingWhacker]

Well, it certainly wouldn't be the first time I didn't see the potential success of a business . .but I just don't see the appeal of Top Golf.  They're building one here in San Antonio - it should be open for business soon.  I'll probably check it out sometime this spring but I don't really see how it would be fun.  I mean, you know, I don't expect it to be *terrible* but fun enough to be worth it?  Can't see it.  Maybe I'll be surprised.

[Gunther]

I've only been once. It really is a blast, great way to get together with a wider spectrum of friends, have some beers with a little fun competition. I enjoyed it but haven't been back which may be indicative of it's staying power. Too expensive to go and work on your game.

[DocWu1948]

They're building a second one on the Chicago area. I visited the first one in the middle of winter about four years ago. A friend and I were looking for an alternative to an indoor driving range. It's much better than hitting balls in a dome, but more expensive. If we had gotten into the game mentality, hitting to targets, etc, plus pizza , beer, GF's and wives ....  sure, it might be a fun evening, but we just wanted to hit balls.

Other people  must like it though or  they wouldn't build a second facility, and you don't have to worry about three putting anything.

The funny part was that if you sliced a ball out of the facility and into cars on the adjoining road,  the chip inside the ball allowed it to be  traced it back to who ever checked it out.

[GoodGuyGreg45]

Interesting, had no idea Callaway owned a piece of Topgolf. I've never been to one, is Callaway promoted at the Topgolf locations?

Their house clubs and upgraded rental sets are probably manufactured by Callaway. They look like Big Bertha 08 irons with Top Golf logos on them. They sell a few gloves, hats and towels from Callaway. Employee appearal features the chevron too, so I'd say they promote them without tying themselves to Callaway perpetually if there ever was a difference in direction.