Growth Strategy

Investment led growth

We drive value for our shareholders by delivering sustainable, profitable growth.

We achieve strong returns on capital invested, have an unrelenting focus on providing a great customer experience and maximise the multiple growth opportunities available to us.

Strategy Overview Progress Priorities
Driving like-for-like growth Driving LFL growth by attracting new customers, increasing the frequency of visits of existing customers and raising the spend per game. In FY2017, our LFL revenue grew by 3.5 per cent. Games volumes were up 3.1 per cent with spend per game up 0.5 per cent. Our approach is to increase dwell time and gain a greater share of customers’ leisure spend as well as drive game volumes in our centres. Continued unrelenting focus on improving the customer experience through planned investments in technology, training our people, marketing and ensuring we have the right products available.
Refurbishment programme Our refurbishment programme generates improved sales and profitability at existing centres through investment in the bowling experience (including the introduction of VIP lanes), new external signage, an upgraded bar offer and the introduction of the new Hollywood Diner concept. These upgrades attract new customers, drive game volumes, support higher prices and encourage a higher spend per game. In FY2017 we refurbished/rebranded ten centres and have an average return on investment (ROI) greater than 33 per cent. We have between seven and ten refurbishments planned for FY2018 and we are confident we can continue to deliver above return on investment (ROI) expectations as we continue to roll out our family-focused model. Continue to enhance our existing estate so we deliver a consistent level of quality across the Group by undertaking seven to ten centre refurbishments per year through a rolling capital investment programme. We have seven to ten refurbishments planned for FY2018 and we are confident we can maintain this level of ROI as we continue to invest in our family-focused model.
Conversion of the Bowlplex estate Following the acquisition of Bowlplex in December 2015, 11 centres became part of the Group. We will refurbish and rebrand these centres as Hollywood Bowl, bringing them in line with the higher standards across the remainder of the Group’s estate. We refurbished and rebranded four Bowlplex centres in FY2017. The average revenue for the Bowlplex centres has increased to £1.81m from £1.69m in the prior year. We have now refurbished and rebranded seven Bowlplex centres to Hollywood Bowl. The average revenue per Bowlplex centre for FY2017 was £1.81m – an increase of 7.1 per cent over the prior year. The final four Bowlplex centres will be rebranded in FY2018.
Development of new centres and acquisitions There are significant growth opportunities via new-build centres and from the acquisition and rebranding of bowling sites from other operators. Southampton opened in December 2016, Derby in April 2017 and The London O2 in June 2017. These centres have delivered higher than expected returns. Dagenham opened in October 2018. We have signed leases for intu in Watford, Lakeside and for a new centre in Liverpool (FY2019). We also have a number of other key opportunities in advanced stages of negotiation. This year, we opened three new centres, in fantastic locations, which are all performing above expectations. We will continue to expand our estate and look for profitable opportunities to grow, opening an average of two new centres per annum, dependent on meeting our acquisition criteria and rental expectations.
Focus on people Our people underpin our business. Attracting and retaining top talent is a key priority for the Group. This year we ran our Centre Manager and Assistant Manager In Training programme. We introduced a new talent programme, ‘Senior Leadership Development’. The success of these programmes is clear: in FY2017, 52 management positions were filled internally, a 10.6 per cent increase on FY2016. Our team members are the face of our business and are responsible for ensuring that our customers enjoy the best possible experience every time they visit. Training, development and internal succession remain key focus areas for the Group.