***Dave & Buster's - Bringing High Tech Entertainment to the Public
by Malisa Burkeen and Jonathan Sunberg
Dave and Buster's is a unique entertainment center concept which combines
food, beverage and entertainment. While Sega and many other companies
seek to define and implement new out-of-home entertainment venues, Dave
and Buster's has delivered it at selected locations in the U.S. for 14
years. Headquartered in Dallas, it opened its first complex in Dallas in
December 1982 and next, also in Dallas in January 1988. Houston opened in
1991, while Atlanta, one of the most successful, opened in October 1992.
The largest location is in Philadelphia (70,000 sq. ft.) which opened
February 1994. In 1995 the company opened two facilities in Chicago
(Addison, IL and downtown) and will open in November a facility in the
Washington, D.C. area. The company is opening sites at the rate of 3 per
year, with new sites scheduled for Ontario, CA, Rockland County, NY,
Denver and potential overseas sites in London, Australia, South America,
and Mexico.
The company went public on 5 October 1995 when it raised $27m. The
company recently reported its 2nd quarter revenues which rose 78% over the
previous quarter to $21.1m. 45% of its income in the quarter came from
Amusement and other revenue.
Dave and Buster's has and continues to lead in high technology
entertainment - it was one of the first sites to provide public VR with
the Virtuality equipment. WAVE had an opportunity to meet up with Gary
Duffy, Corporate Director of Amusements, at the soon to be opened
location in North Bethesda, MD in the White Flint Mall. Given that this
is the latest location and one which will again bring cutting edge 3D
based games to the public WAVE sought Dave and Buster's views and plans.
The White Flint location will be filled with simulators and top of the
line video games, including: simulated golf, an Iwerks theater, Tokyo
Wars (in a specially themed area) and Daytona Special. This location will
have the new Virtua Fighter III (as reported in WAVE 609). When asked if
he really thought they would recoup their investment on the Virtua
Fighter III, all we got was a chuckle. It seems Dave & Buster's is faced
with a lack of alternatives to the Sega 3D image generation technology
(the Lockheed-Martin Model 3 system). There is nothing else which can
compete with it right now, even at the outrageous price Sega is asking.
Dave & Buster's has updated their arcade entertainment area in the White
Flint location. They will be using a debit card system rather than
tokens. This system was introduced in Dallas about six weeks ago, but to
their surprise there was no drop in entertainment spending. Mr. Duffy
attributed this to the fact that because their facility is more adult
oriented and adults are accustomed to ATM and debit cards, there was no
significant difference between tokens and debit cards. A benefit to Dave
& Buster's is lower labor costs which eliminates the need to handle
tokens. In addition, there is a new tracking system which keeps track of
all the action on every machine. This will allow them to come up with
special deals to encourage play during slow times or on slow machines.
WAVE has observed a number of the Dave and Buster's locations and it is
unique in its ability to provide a safe and wholesome atmosphere for
adults. A typical facility includes pocket billiard, shuffleboard,
interactive simulators, card games (not gambling), televised sporting,
multiple bars and dining areas. The arcade amusement area is an example
of what makes them different - women are as equally attracted to play as
men. Although Gary does not have an explanation for this, he felt that a
"comfort factor," could be one reason. Dave & Buster's has created a
unique, safe, and attractive environment. The arcade is not over crowded
or too dark, this helps create the "comfort factor." In addition, even in
the arcade areas a food area is typically embedded into the facility
which also creates a more relaxed atmosphere. Whatever it is, Dave &
Buster's has developed a sophisticated facility that screams fun.
Wave Issue 9612 11/8/96 Article 7-01