THE COLONY, Texas — Ardis Crocker let out a shriek of excitement after whacking a golf ball down the net-enclosed range at Topgolf in The Colony.
She was there for work, sort of. And that’s exactly where Dallas-based Topgolf sees its sweet spot, and its future.
“What we’re trying to do here is democratize the thrill of hitting a golf ball,” Topgolf CEO Artie Starrs told The Dallas Morning News.
Crocker, 50, and her co-workers at real estate firm EmpowerHome Team illustrate Starrs’ point. Her team had gotten the most Google reviews and landed on Topgolf when their bosses let them pick a reward.
“We don’t like bowling,” Crocker joked.
It was Crocker’s first time at Topgolf, and it was her co-worker Laurie Andres’ second. Like many others on that typical crowded Wednesday afternoon, they ordered food and drinks and played the game of their choice with Toptracer, a ball-tracking technology that Topgolf owns.
“The only place I golf is Topgolf,” Andres said.
Andres, 58, is one of the roughly 50% of Topgolf customers who exclusively golf at Topgolf venues, meaning they don’t play on traditional golf courses.
Topgolf’s lucrative niche is more than just clubs and balls.
Starrs said he’s at the helm of a “rocket ship” that’s taking the social experience to a whole new level and across the planet. He came on as CEO in April 2021, a month after golf equipment and apparel company Callaway acquired Topgolf, and the company has posted revenue of over $320 million in each quarter since.
Topgolf’s multilevel venues have full-service bars and kitchens with event rooms available for rent. Business groups will often have meetings in the event rooms and then hit the range afterward.
The experience is not enticing just for business meetings. In the downstairs section at The Colony location, the Kids Academy clinic takes place. Parents can drop off their 6- to 12-year-olds for supervised instruction from a golf pro from 9 a.m. to noon for $225 a week.
Consumers looking for a more traditional golf experience can do that, too. Virtual versions of St. Andrews and Pebble Beach await those with a desire to play some of the sports’ most storied courses.
Or you can play Angry Birds. Golfers not interested in traditional courses can play the popular game that’s available on the phone. Only instead of flicking with your finger, customers hit the golf ball and watch the Toptracer technology track the ball on the screen as it knocks down pigs.
“Where else in the world can you play Angry Birds and Pebble Beach in the same place?” said Starrs, who grew up in North Dallas and went to Cistercian Preparatory School in Irving.
Topgolf has ambitious plans for the future. The company is scheduled to open 11 locations in the United States and United Kingdom this year, in addition to one it just opened in Oberhausen, Germany, and one in Bangkok, Thailand, that’s set to open later this year.
On top of that, all the 60-plus venues will be equipped with Toptracer technology by 2025, said spokeswoman Kara Barry.
Buying real estate in desirable locations has been key for Topgolf, Starrs said. The company often pays more for proximity to people, such as locations in El Segundo, Calif., and Baltimore’s inner harbor.
Starrs also attributes some of Topgolf’s recent success to the experience economy.
“What we’re seeing is time is precious and the consumer has moved from buying things to sharing in experiences with the people that they care about,” Starrs said.
In the first three months of this year, Topgolf’s revenue was $322 million, a 2.3% increase in same venue sales compared with pre-pandemic 2019. Its success has Dallas-based golf course operator Invited pushing its alternative, BigShots Golf, which opened its first Texas location a year ago north of Fort Worth.
Topgolf’s goal is to be a break from day-to-day activities.
Half of the customers partaking in Topgolf experiences are women, Starrs said, which is well above the 25% mark of on-course golfers who are women.
Topgolf also stands to gain from increased golfing interest when the PGA headquarters opens in Frisco in spring 2023. The company is already partnered with the PGA and Omni Hotels & Resorts, and its Toptracer technology will be featured at the driving range.
“We relish our role in creating traditional golfers,” Starrs said. “We’re passionate about this being golf, too, so coming to Topgolf is golf.”
