Golf driving range bar and grill as a business?

[Mike Boatright]

Is this a feasible business model or would it take millions of dollars to acquire 50 acres with a supreme clubhouse with simulators,inventory food etc..

[newtogolf]

Why does a golf driving range require 50 acres?  I would think 10-15 acres would be sufficient for what you're suggesting.  I'd suggest you read; Building a Practical Golf Facility - http://www.asgca.org/publications-for-sale.

As for simulators and clubhouse, I was considering building such a facility on Long Island.  In doing my due diligence I decided the business was not financially feasible though combining it with an outdoor grass range might make it more feasible as it would be a specific destination point rather than a building that is part of a strip mall.

NY has a 4 month winter (December - March) where it's too cold for all except the real diehards which is when an indoor facility would flourish most.  A large portion of the NY golfing community are snowbirds and head to Florida in the winter which also reduces the potential client base.   You would need to adopt a annual membership plan with monthly payments (like a gym membership) to ensure you cash flow during the slow months.

An indoor facility located about 20 miles from where I was planning to build mine shut down after 2 years in business.  Their space looked like a country club clubhouse, they had top of the line simulators. food and annual memberships.  I didn't like their location, parking was difficult and it required their customers to carry clubs on the streets to because it was part of a strip mall with only street parking.

I have no idea what the costs would be for a grass range (upkeep, mowers, ball retriever), but it would be an added attraction to keep golfers coming to your business year round.

 

Edited October 6, 2015 by newtogolf

[Mr. Desmond]

Is this a feasible business model or would it take millions of dollars to acquire 50 acres with a supreme clubhouse with simulators,inventory food etc..

If you want to make money, contact topgolf.

Add a connected driving range for serious practice.

[Mike Boatright]

It has to be 400 yards long and 200 yards wide with about 60 stalls 2 decks. You would need a short game area and a parking lot not to mention the clubhouse seems like a lot of acreage. Looks like you really looked into it newto golf I think it's a challenge even if you had the money for it.

[ElWagonne]

If you want to make money, contact topgolf.

Add a connected driving range for serious practice.

Yep.  The Dallas OG TopGolf has a grass practice area for serious practice, so it would work.

[mcanadiens]

The single biggest factor is location. Does the combination fill an under-served market in the particular area you are considering?

Are serious golfers your primary focus or are you hoping to get a more general demographic?

I think I'd personally enjoy such a facility in my home town, but I'm not too sure there are enough other people who would.

 

[ghalfaire]

The single biggest factor is location. Does the combination fill an under-served market in the particular area you are considering?

Are serious golfers your primary focus or are you hoping to get a more general demographic?

I think I'd personally enjoy such a facility in my home town, but I'm not too sure there are enough other people who would.

All of these are good questions that need to be answered before you purchase any land.  Especially about what is the need.   Most courses have a driving range for full swing practice and if there are golfers in the area there likely is no lack of driving ranges here.  But I often hear complaints about the lack of "good" short game practice areas.   But if one could come up with a great short game practice area and a twist like Top Golf has that makes it interesting, maybe you could make it work.  

[Mike Boatright]

I would never open a gimmick range for the short game area, I would however opt for unique targets out there such as bulls eye mounted high or the impossible green to hit being like 5 by 5 feet something like that. Overall It's about golf though mats are fine grass is usually to hard to maintain and good balls are a must must!!

[ghalfaire]

I was not trying to suggest a "gimmick" short game range.  Top Golf has that pretty well covered.  Maybe something like a certificate for a free bucket if you hit the bull's eye or for a hole in one from 50-60 yards.  Just something that makes customers want to come back.  Everyone likes a challenge and a reward when they succeed. 

I would never open a gimmick range for the short game area, I would however opt for unique targets out there such as bulls eye mounted high or the impossible green to hit being like 5 by 5 feet something like that. Overall It's about golf though mats are fine grass is usually to hard to maintain and good balls are a must must!!

[Tat14]

When I lived in San Diego (read year-round golf weather), we had two places that tried this concept, or something akin to it.

The first one was smack dab in the middle of downtown, targeting the lunch crowd and after work market. This was a very nice facility - two sided with two decks, plenty of stations. Putting green, bar and grill, full pro-shop... my friends and I really enjoyed it. Alas, it never made enough to stay open for very long. New ownership would cycle through and reopen with most of the "extras" stripped away. I imagine it's closed and razed over by now.

The other place was out in the burbs near Qualcomm - Stadium Golf & _____. Run of the mill range and a little pro shop. It sold beer and snacks. It also had a large batting cage facility which added a second target market. I believe this place is still open.

(Current S.D. residents could chime in as my info is a few years stale. Downtown was near A Street and the train station. Stadium was off of I-15 just north of the 8 junction.)

Point being is that the difference between the two was customer potential. Unless you're a destination golf operation, you're depending on the same group of people coming back over and over. That's hard in golf from what I have seen. If you can appeal to others, then maybe...

[Braivo]

A guy in my town bought an old warehouse for pennies per square foot. He put in a few simulators and sells beers and snacks. During the winter months his place is jammed with simulator leagues. His overhead is tiny and his client base is loyal, serious golfers. He makes plenty in the winter months to cover the slow summer months. I think he even closes down for the summer. 

Start small.

[newtogolf]

A guy in my town bought an old warehouse for pennies per square foot. He put in a few simulators and sells beers and snacks. During the winter months his place is jammed with simulator leagues. His overhead is tiny and his client base is loyal, serious golfers. He makes plenty in the winter months to cover the slow summer months. I think he even closes down for the summer.

Start small.

Given my research that would be the ideal situation.  You get the space cheap, the simulators are likely leased and you sell high margin food and drink items to supplement the simulator time income.  Unfortunately here on Long Island there isn't any land, no less land with a warehouse that sells for pennies per square foot. 

[ncarlsongolf]

Yep.  The Dallas OG TopGolf has a grass practice area for serious practice, so it would work.

I have heard that Top Golf doesn't franchise out, so you would have to do something with the technology that isn't patent protected.  That in itself would be a hefty investment.  I think depending on the climate that the indoor option is going to be the best bet! The overhead to maintain these facilities are not too much, but the initial investment is quite substantial.  Additionally, it is not going to be PGA recognized, so it is going to fall into the gimmicky type golf centers.  But, you will attract a broader range of people who want to come and drink and enjoy a little golf time.  

[David in FL]

What you have is an idea, not a business model.

You'll need to provide a LOT more info for anyone to provide any kind of informed opinion.

[billchao]

A guy in my town bought an old warehouse for pennies per square foot. He put in a few simulators and sells beers and snacks. During the winter months his place is jammed with simulator leagues. His overhead is tiny and his client base is loyal, serious golfers. He makes plenty in the winter months to cover the slow summer months. I think he even closes down for the summer. 

Start small.

I'd do that just to have a warehouse to golf in all the time 

There are a growing number of indoor simulator places around me, and while I can't vouch for their viability during the warmer months, I know they are jam packed and booked at least a week in advance during the winter. The one I'm most familiar with does stuff with local high school teams, leagues for various age groups, etc.

[gregsandiego]

On 10/7/2015, 10:34:28, Tat14 said:

When I lived in San Diego (read year-round golf weather), we had two places that tried this concept, or something akin to it.

The first one was smack dab in the middle of downtown, targeting the lunch crowd and after work market. This was a very nice facility - two sided with two decks, plenty of stations. Putting green, bar and grill, full pro-shop... my friends and I really enjoyed it. Alas, it never made enough to stay open for very long. New ownership would cycle through and reopen with most of the "extras" stripped away. I imagine it's closed and razed over by now.

The other place was out in the burbs near Qualcomm - Stadium Golf & _____. Run of the mill range and a little pro shop. It sold beer and snacks. It also had a large batting cage facility which added a second target market. I believe this place is still open.

(Current S.D. residents could chime in as my info is a few years stale. Downtown was near A Street and the train station. Stadium was off of I-15 just north of the 8 junction.)

Point being is that the difference between the two was customer potential. Unless you're a destination golf operation, you're depending on the same group of people coming back over and over. That's hard in golf from what I have seen. If you can appeal to others, then maybe...

Stadium golf is still there. It's just another driving range as far as I'm concerned, but a big one. What it lacks is the entertainment factor like TopGolf has;sports bar, drink service etc.

I discovered TopGolf in Texas from my customers there. I can use that as a way to entertain even non-golfers.

 

 

 

[WUTiger]

I was thinking about this thread when I was in Orlando for the PGA Merchandise Show.

The show featured several companies that specialized in driving range hardware and hitting-station systems. If you could get qualified as someone who had a golf business, or was working for someone with a golf business, you could go to the show and check things out  yourself.