The rise & fall of Topgolf: what went wrong?

Created a tech-enhanced driving range that appealed to non-golfers looking for group activities. Hit massive scale with locations doing $10-20M annually. Perfect timing as millennials gained spending power and craved experiential outings.

Post-COVID normalization hit hard. Consumer behavior reverted — people tried it once and didn't return. Inflation squeezed wallets while Topgolf charged $36/person average spend. Rising interest rates crushed margins on the borrowed capital used to build $15-40M facilities. Competition emerged with cheaper indoor alternatives requiring fraction of the capital.

Stock down 40%. Same-store sales declining 10% year-over-year. Splitting from Callaway merger to salvage both brands. Still operating but growth engine stalled.