Stinger Report - 24/05/2021

TSR Newsletter | May 24, 2021

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The Global Digital Out-Of-Home Entertainment (DOE) Sector covered in The Stinger Report .

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Kevin Williams

Publisher, The Stinger Report (TSR)

Social Entertainment Goes Golfing

Part 1 | # 1071

Report Skinny

In The Stinger Report #1071 – This issue covers in detail:

1. [TRENDING NEWS] Charting the re-emergence in popularity of mini-golf, this feature takes a far-reaching look at the Gamification of the traditional attraction, deploying new technology.

2. [TRENDING NEWS] Looking at how the concept of Topgolf has played its part in influencing the migration to Gamified mini-golf from the likes of Puttshack, Creative Works, Puttery and Holey Moley, to name but a few.

3. [BREAKING NEWS] New investment has been driven into looking at the opportunity of social entertainment with a mini-golf flavor, seeing big names such as Tiger Woods invest heavily in new concepts such as PopStroke.

4. [TRENDING NEWS] The first part of this feature looks at the way the market is expanding, while the second part looks at the profusion of new venues in the States and UK, along with charting new technologies which could add to this popularity.

….and much, much more!

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- The Stinger Report, published by KWP and its director, Kevin Williams, is the leading interactive Out-of-Home Entertainment news-and-views resource, covering the immersive frontier and beyond.

Main Report

The Social Entertainment sector (what some have dubbed the “Food-n-Fun” scene) is seeing an explosion in interest coming out of the impacts from the Global Health Crisis. Much of this interest is a continuation of mounting investment that was made in 2019, before the great lockdown. Such interests are now reignited, and with greater emphasis to address the growing thirst from facility owners, operators, and the public, for all things to do with entertainment.

In this two-part feature, The Stinger Report will first be touching on the various trends in this sphere gaining interest, including the Gamification of the traditional attraction.

- Gamifying Mini-Golf to Feed Social Entertainment

The explosion in interest in mini-golf as a vehicle towards creating an entertainment environment supported by F&B, has been a concept bubbling in the background of the Social Entertainment revolution of late (as was recently reported in the White Hutchinson Leisure eNewsletter). Long before the impact of the Global Health Crisis, several prominent entertainment start-ups had looked at factoring a mini-golf concept into their lineup of branded entertainment venue concepts. Most notably, as the market re-emerges, we have seen an increased investment in this approach, and what looks to be the start of a major landgrab and development war to own the high ground.

Recently, announcements have been made that two of the initial UK mini-golf social entertainment environments which have started the process to open US flagship venues, have also revealed considerable investment to secure their positions. This would seem to mark a moment where mini-golf explodes as a new social entertainment platform on the international scene.

- Gamifying Mini-Golf

Known by many names, “Miniature Golf” (“Mini-Golf”) and “Crazy-Golf” are all derivations from the same concept of a short putting golf game, either around reduced greens, or through animatronic and miniature-village hazards. The concept traces its history back to 1916, and its first flush of popularity in the 1950s with the ‘Putt-Putt’ brand. Meanwhile, in the 1970s the concept of ‘Crazy-Golf’ received a reinvigoration, fielded by indoor and dark-light establishments. And even a brief flirtation with “Urban Golf” (“Street Golf”).

But it has been the explosion in social entertainment, and the application of a much younger adults social networking vibe, married to the latest deployment of hospitality and entertainment infrastructure, that has seen mini-golf propelled recently to the ascendant. Regarding the use of the Social Entertainment approach to this medium, one of the key influencers (directly and indirectly) has been Topgolf. Recently acquired by Callaway Golf in 2020, the over-50 facility chain operation started to see the deployment of mini-golf installations as a secondary entertainment, vertical to the main social shooting range format.

The operation is known for its addition of “Gamification” to the golf shooting range – the tracked balls allowing for the experience of shooting balls into targets to become a socially inclusive game, without the sometimes-overbearing golf traditions. As seen with Social Entertainment development across the sector, adding a fun game element to traditional entertainment (Gamifying) offers these entertainments a new lease of life and a chance to be rolled into a F&B offering as a standalone entertainment.

A new mini-golf mix to the proven franchise [Topgolf]

The operation has also been involved in an investment plan to build on the Social Entertainment element and look at the interactive entertainment capabilities of the brand. Most notably, with the launch and rollout of the‘Topgolf Swing Suite’ venues, that offer a F&B environment with a digital screen active sports experience, now comprising over 60 sites. But regarding our story, it is the news of the inclusion of a new mini-golf putting course to the existing Topgolf locations that underlines a move by the operation under the name of ‘Putt Hut’ (one that was reflected more clearly with the previous corporation’s founders). This new mini-golf concept was designed and developed by Zachary Pulman Design Studio, to add a broader entertainment offering to the sites.

It was the brothers behind the Topgolf concept who have gone on to evolve the mini-golf approach. Through their new operation, State of Play, the unique tracked golf balls have ventured into one of the most discussed of the emerging next-gen mini-golf concepts, with Puttshack. The first iteration of this concept opened in London in 2018, and has continued to roll out, with its first US location now open. Puttshack plans to open its fourth US site in 2023, at a premiere location in the Gulch, a neighbourhood in Nashville. This concept (one of several State of Play Social Entertainment ideas), has seen the deployment of immersive technology with regards to ball tracking and a scoring element added to the mini-golf experience. The company would go on to reveal an $60m fund from UK and US-based investment firms that will fuel a US rollout, with the first Atlanta site being followed, in the fall, by Chicago and then Miami venues.

The mix of fun and hospitality that marks out the new mini-golfers [PUTTSHACK]

Another developer grasping this opportunity is Creative Works, who revealed in 2019 its brand-new ‘Lucky Putt’ mini-golf course. This is a system which applied “Gamification” technology to the game, with tracked balls and animated courses. It also employs touchscreens and special course-based sensors – as well as the player ball personalisation kiosk. The whole platform can have the game software updated to include new game styles and promotional information. Creative Works is known for its work in creating more traditional blacklight mini-golf experiences, and arenas were able to take this approach to the next level with the “Gamified” mini-golf platform which has attracted numerous operators to install the system.

Most recently, ten-pin bowling operation Sun Valley Lanes installed the ‘Lucky Putt’ system in its refurbished Nebraska venue. Inspired to embrace new technology, this was a decision made following the facility owners’ visit to the Creative Works Amusement 360 Event in 2019 (which Stinger Report parent KWP presented at). This is one of seven locations that have adopted a Gamified approach to refreshing their mini-golf offering, based on the Creative Works platform. An example of one aspect of the market, with a large traditional installed base of mini-golf courses, a captive audience for retrofitting to a new standard.

This approach to Gamifying the mini-golf experience with digital technology has become a growing trend within the sector. Along with the Creative Works platform, several other manufacturers are working on soon releasing their interpretations of this approach, and it is expected that this will become a massive trend going forward. What some have dubbed “Golf Entertainment Facilities” are the new opportunity as standalone venues.

The battleground of offering the next chain concept for Social Entertainment in a mini-golf package has seen Topgolf competitor, Drive Shack, throw its hat into the ring, initially with investment into its Urban Box locations. Having opened, to date, four sites, these “tech-enhanced” mini-golf venues are targeting urban locations (usually in the 25,000-sq.ft. range). Drive Shack secured technology for ball tracking and automatic scoring – and married this to a dedicated F&B offering, all within a highly-themed environment to encourage the kind of social engagement that defines this trend in the market.

This marks a transition for the operation, looking at pivoting more towards this form of entertainment and away from the traditional golf offering. Along with a “Generation 2.0. Drive Shack” business model, with new tech and improved space utilization, the company has also planned to open 50 facilities by the end of 2023. This was obvious in the 2019 plans, however a lot has changed for all entertainment offerings during the last 24-months. Drive Shack announced, in 2021, the rebranding of its concept under the new name Puttery, defined as a "competitive socializing and entertainment golf experience". This also saw the signing of an agreement for a 20,000-sq.ft. venue, opening in Penn Quarter, Washington D.C, still aiming for an extensive rollout with two venues this year and 17 by 2022.

Conceptual rendering of the new Puttery game floor [Drive Shack]

With the increased investment in Social Entertainment, things have accelerated, and the development of a workable brand that can be transported internationally focuses many of the leading minds in the entertainment industry.

One of those leading minds from the other side of the globe is Funlab, a major Australian operator with bowling and LBE facilities in that territory. Based on extensive research on the market, the operation has been aware of the opportunity represented by the mini-golf scene. In speaking with the operation, The Stinger Report was briefed that Funlab perceives the market as represented by the “high-tech” approach, personified by the likes of ‘Puttshack’; the “traditional” approach, represented by venues such as ‘Swingers’, and a third aspect of “Fun/Novelty”, which they have embraced. The operation has gone as far as acquiring the Global trademark on the brand ‘Holey Moley’, (even licensing it to ABC/Disney, and Channel7 Australia, building awareness). And with this Funlab has developed what they have defined as their “Anti-competitive socialising concept” for minigolf.

The ‘Holey Moley’ experience sees an off-line, no screen approach, offering an irreverent fun mini-golf concept for guests. Embracing Pop-Culture in its aesthetic and creating a fun casual gaming experience, with games based more on luck than skill, to level the playing field. Removing an overly competitive experience, for fun and socializing. The games also take part in highly themed courses that are built to be fun to play. The company has developed over 150 holes that are rotated through the chains, keeping the experience fresh for the players. This has proven a successful formula with Funlab operating across Australia, New Zealand, and Singapore some 20-company-owned ‘Holey Moley’ golf clubs, (12 stand-alone, and 8 co-located). The company has plans to continue to grow the number of sites with another 3 venues opening before the end of the year and have also started to look to export ‘Holey Moley’ to the West.

All the fun of Social Entertainment mixed with mini-golf [Holey Moley]

Not all the new investment into “Golf Entertainment Facilities” is for indoor venues. One of the new Social Entertainment golf concepts gaining a lot of coverage saw the investment of big names in support. PopStroke, 50-percent owned by Tiger Woods (through his operation TGR Design), opened its flagship location in Florida. Unlike other mini-golf offerings, the action takes place outdoors, with a more contemporary 36-hole miniature putting experience designed to offer a golfing skew on synthetic turf and employing technology-based enhancements, through the company’s patented ‘iPutt’ Bluetooth ball tracking platform. A second venue opened recently, that continued to refine the concept and address teething problems. Further planned investment will see a rollout of more facilities soon.

Regarding the basic elements of a tracked physical activity game, deployed in a Social Entertainment environment, the technology seen in ball tracking and Gamified activity are also being combined into other adaptations of this approach. This ranges from tracked soft-nose darts and shuffleboard, as well as some innovative new interpretations of fun, social, game experiences. Large sums are invested in patenting and protecting the rights to this tracking technology. This aspect of the business seems ripe for innovation, and several other well-known amusement and attraction development studios are rumored to be working on their own mini-golf game concepts for rollout later in the year.

Concluding this first part, the second and final part of this far-reaching coverage on this re-emerging amusement experience will follow soon. We thank all our subscribers and advertisers for their support, and the next report will follow shortly.