Betting on the Experience
Investors are increasingly bullish on the eatertainment model compared to traditional restaurants, as highlighted by industry expert Camillo. The unique appeal of venues featuring activities like padel courts and bowling lanes is rooted in the stability of their revenue streams. These experiences offer better economics for real estate and are less susceptible to changing dining trends.
Rising Trend of Pickleball Venues
Pickleball, a rapidly growing sport in the U.S., is attracting significant private equity investment. Its large facilities, requiring 30,000 to 70,000 square feet, can repurpose former big-box retail locations, revitalizing struggling shopping centers in suburban areas. The popularity of such venues is particularly pronounced in regions where locals need indoor activities, like South Florida.
Investors recognize that these venues can drive foot traffic and generate recurring revenue, which is advantageous for both landlords and consumers. Patrons, in turn, appreciate the added value—dining combined with activity—in contrast to traditional restaurants, with studies indicating that 21% of Americans are willing to pay more for the eatertainment experience.
Value Proposition and Consumer Preferences
As dining out becomes more competitive, establishments offering activities along with meals are responding to an increasing consumer demand for experiences over mere meals. This shift is corroborated by OpenTable data showing a 46% rise in experiential dining from 2024 to 2025.
The evolving landscape has led to a growing focus on personal activity; the Physical Activity Council reports a significant decrease in inactive Americans since 2020, fostering further interest in eatertainment.
Business Models and Membership Strategies
To ensure a solid return on investment, private equity firms are integrating membership models into these venues. Monthly memberships, generally between $75 and $149, include perks that enhance the overall experience and promote regular attendance. This structured model allows for more accurate revenue forecasting.
While success in this sector raises concerns about accessibility and affordability, especially compared to upscale options like country clubs, initiatives like free daytime court reservations at venues such as Electric Pickle aim to make the experience more appealing and economically viable for a broader audience.
Conclusion
Overall, the intersection of dining and entertainment is gaining traction among both consumers and investors. With changing consumer preferences prioritizing experiential engagement, the eatertainment model stands poised for continued growth, provided that affordability and inclusivity remain at the forefront.
