Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) Q2 2023 Earnings Call Transcript - Page 4 of 6 - InvestingChannel

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) Q2 2023 Earnings Call Transcript

So no different than when you look at food and beverage, costs in major metropolitan areas usually cost more from a price point than in more regional markets or smaller towns. Right now our limitation is that all pricing for all games is consistent across the entire system. We’re now able to unlock that and be able to put regional pricing in place, which will start going into test in the next couple of weeks. One of the key things we want to do though in doing such is make sure that we maintain the value of our product offering in relation to our peers. So, from that respect, we haven’t communicated nor would we, what we think that estimated growth would be in Q4, but we would expect there to be something there.

Brian Vaccaro: And then just the last one for me, if I could, I appreciate the update you provided on certain initiatives that you laid out to the Analyst Day, but I know it’s early days, but can you elaborate on the customer response you’ve seen in the Friendswood remodel? Any specifics on how the social base are performing or other specific changes that you made that are driving the increase most meaningfully? Thank you.

Chris Morris: Yes, happy to do so. I mean, it’s — we’re very pleased with the guest response in the community on all aspects of the remodel to be perfectly frank. As we said in our prepared remarks, it’s only three weeks, it’s only one store. And so we’re trying to be guarded in our enthusiasm. But, over the last three weeks, that particular unit has outperformed our expectations. So we’re feeling very good about what we’ll be able to do with remodels. And we feel very good about expanding our entertainment offering and doing it in a way that we think is at the heart and center of what a D&B guest is looking for. So, so far so good.

Operator: And our next question today comes from Andrew Strelzik with BMO.

Andrew Strelzik: My first one, appreciating certainly that you can’t affect the macro environment. I guess it’s a question on how you’re thinking about balancing the multi-year strategic plan and implementation of that versus like, flexibility on the near end opportunities. And so I guess, sounds like there’s more value on the F&B side, some of the other changes that you talked about, some more marketing around football. I mean, do you think that that addresses kind of what…

Chris Morris: Andrew, we lost you.

Mike Quartieri: Andrew, we’re having a connection problem.

Chris Morris : Yes, we lost you right after you said — do you mind just starting from the beginning?

Andrew Strelzik: Yes. Can you hear me now? I just want to make sure you can hear me.

Chris Morris: Yes. No, we got you.

Andrew Strelzik: Okay, great. All right. I guess the question really is how are you — like, what is the flexibility of the — of the plan in the near-term? As you kind of navigate, what is a macro that you cannot control? Do you think about the pricing opportunities differently? Are there any other programs that you can implement that you’re thinking about to be adaptable to the current macro?

Chris Morris: Yes. Well, the short answer is, we’re very mindful of how we navigate the business during this period of time and still deliver on our long-term goals. A big part of that is how we’re managing the cost structure. And as I said a minute ago, I’m very proud of all the work that our team is doing to manage the middle of the P&L. And when, we can navigate through this type of environment and still deliver on the bottom-line, that provides just a tremendous amount of flexibility and gives us confidence to continue to invest in the right areas of the business. With all that said, though, we’re moving forward with eyes wide open and being very mindful of not getting too far ahead of ourselves on investment spending and ensuring that we’re balancing all sides of the business.

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