Topgolf has laid off an undisclosed amount of employees from its Dallas headquarters, joining a growing list of companies in the restaurant industry.
CEO Artie Starrs told investors last week that its reorganization had three intentions—optimize leadership focus around driving same-store sales growth, simplify work so employees can focus on improving the in-bay experience, and lower the cost base.
“We know at the heart of the brand are our venue playmakers and our venue directors of operations who lead them,” Starr said during Topgolf’s Q4 earnings call. “We are streamlining our home office structure to better support our venues and run a more agile organization.”
The news comes as Topgolf Callaway Brands Corp. plans to either spin off Topgolf into a separate public company or execute a sale.
In Q4, Topgolf generated $337 million in EBITDA and swung 34 percent venue-level EBITDA margins, which were flat versus 2023 and up 500 basis points versus 2019. The company also achieved over $100 million in free cash flow, the chain’s second straight year of positive cash flow.
Same-store sales decreased 8 percent in Q4, but this is still a sequential improvement from Q3, driven by better traffic and better-than-expected holiday events. The decline was primarily attributed to lower food and beverage spending from customers per visit. For Q1 2025, comps are expected to decline by 10 to 13 percent due to unfavorable weather conditions, particularly in areas affected by severe cold and wildfires.
The chain is launching new games, like partnerships with popular media properties (i.e. Sonic the Hedgehog and Captain America); testing the removal of booking fees in about 30 percent of venues, which has led to higher conversion rates on the website; introducing promotional offers, such as $30 per hour of gameplay during late-night hours and family-focused promotions; and transitioning to a new POS system to streamline operations and improve the in-bay food and beverage ordering experience.
Topgolf finished last year with 100 locations worldwide. It plans to open five venues in 2025, four of which will come in the fourth quarter.
Other notable companies to announce layoffs include Starbucks, Bloomin’, and Grubhub.
