When you think of the top golf franchises, Topgolf probably comes to mind. But with recent reports of Topgolf’s struggles, many are questioning if it’s still a good investment. Topgolf Callaway Brands is considering a strategic review of the concept due to declining sales and customer concerns over pricing. While Topgolf focuses on ‘eatertainment,’ concepts that prioritize the actual game of golf are thriving. These streamlined, membership-based facilities emphasize golf instruction and fitness, offering a simpler and more successful model that is easy to open and operate. One of these brands that’s doing it well, and just launched franchising is Swing Bays.
Is Topgolf a Good Franchise?
Topgolf has long been admired for its blend of golf, dining, and entertainment. The concept thrived coming out of the pandemic, but recent sales have painted a different picture. With same-store sales declining by 8.2% last quarter and an 11% drop in July, Topgolf is feeling the pressure. Customers have expressed frustration over high prices, leading to a reduction in venue traffic and events bookings.
The investment required to open a Topgolf location is significant, ranging from $15 to $50 million. While Topgolf venues offer a unique “eatertainment” experience, the high cost of entry, declining sales, and an increasingly saturated market are causing potential investors to reconsider.
What if the Future of Golf wasn’t on the course? Swing Bays answers that question!
Swing Bays offers a completely different approach to the indoor golf experience. Founded by PGA teaching veteran Dustin Miller and his wife, Brenna Miller, Swing Bays focuses on golf and fitness rather than the “eatertainment” model. The concept emphasizes improving golf skills through state-of-the-art simulators, expert instruction, and tailored fitness programs—all in a community-focused environment.
Lower Investment, Higher Value
One of the most compelling aspects of Swing Bays is the cost to open a franchise. With an investment range of $226,400 to $924,000, Swing Bays is far more accessible than Topgolf. The lower cost doesn’t mean a compromise on quality; each location comes with top-of-the-line golf bays equipped with TrackMan and V1 Sports video analysis technology.
Focus on Golf, Not Dining
While Topgolf combines golf with a full-service bar and restaurant, Swing Bays focuses solely on the sport and the golfer’s experience. The limited snack menu and optional alcohol service keep the concept simple, reducing operational complexity and labor costs. Swing Bays isn’t about attracting customers with food and drink; it’s about building a community of golfers who are serious about improving their game.
Multiple Revenue Streams
Swing Bays offers franchisees a variety of revenue streams beyond just the golf bays. These include memberships, private lessons, golf fitness sessions, parties, branded merchandise, club repairs, and events. This diversity allows franchisees to tap into various markets and create a more stable income stream. Swing Bays has even capped monthly memberships at 200, emphasizing quality and personal relationships over quantity.
Swing Bays vs. Topgolf: A Comparison
- Cost to Open:
- Topgolf: $15 – $50 million
- Swing Bays: $226,400 – $924,000
- Focus:
- Topgolf: “Eatertainment” with driving ranges, food, and drink
- Swing Bays: A membership-based golf simulator offering fun, instruction, and fitness—it’s the country club of indoor golf.
- Revenue Streams:
- Topgolf: Primarily from venue experiences and food/beverage sales
- Swing Bays: Memberships, lessons, fitness sessions, events, golf game improvement
- Market Response:
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- Topgolf: Declining sales, high customer price sensitivity
- Swing Bays: Growing membership and focus on personalized experiences
Swing Bays vs. Topgolf: Finding the Right Fit for Your Investment
Swing Bays presents a more sustainable and focused approach to the indoor golf franchise model. It’s about creating a community of golfers, offering a personalized experience that goes beyond just hitting balls. With the guidance of a PGA professional and a fitness-oriented approach, Swing Bays appeals to golfers of all ages and skill levels.
In a market where customers are increasingly looking for value and a sense of community, Swing Bays stands out as the superior option. Its lower cost of entry, multiple revenue streams, and emphasis on the sport itself make it a more attractive investment for those interested in the top golf franchises.
Conclusion:
Topgolf’s recent struggles indicate a shift in consumer preferences and market demands. Swing Bays, with its affordable investment and golfer-centric model, offers a compelling alternative. If you’re looking for a golf franchise that combines quality, community, and profitability, Swing Bays is the top choice.