Hollywood Bowl pledges to maintain bowling inexpensive for cost-hit households
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ollywood Bowl has pledged to maintain a lid on value rises for cash-strapped prospects as its gross sales have remained resilient amid a shift to inexpensive household leisure within the cost-of-living disaster.
The boss of the ten-pin bowling chain stated the group had elevated the worth of a recreation of bowling by 3.9% or 20p since 2019 in opposition to a backdrop of double-digit inflation within the UK.
Stephen Burns, chief government of Hollywood Bowl, advised the PA news company it could maintain any additional value will increase over the following 12 months to a minimal, at between 2.5% to three% the place essential.
He stated: “We only need to increase prices by 2.5% to 3% to mitigate all of the cost pressures that are coming our way.”
Mr Burns stated this could not be a “huge hit” for its prospects, which he count on will proceed visiting its venues because it proves fashionable amongst households in search of inexpensive actions within the cost-of-living disaster.
His feedback got here because the group reported decrease earnings, however document revenues for the six months to March 31 and stated it was “confident in resilient demand as customers look for value-for-money leisure experience” over the remainder of the 12 months.
Hollywood Bowl posted pre-tax earnings of £26.7 million for the six months to March 31, down from £33.4 million a 12 months in the past.
But it stated with the buying and selling increase a 12 months earlier from the short-term VAT discount stripped out, earnings lifted 7.7% to £24.8 million.
It noticed like-for-like gross sales rise 3.5% and notched up document revenues of £110.2 million over the half 12 months, up 9.7%.
As we navigate the present financial panorama, we perceive that lots of our prospects are dealing with challenges reminiscent of rising dwelling prices and better rates of interest. This is why we proceed to give attention to offering a high-quality leisure expertise that gives nice worth for cash
Mr Burns stated the group was “cognisant” of the pressures on households, “and we know our customers will be feeling it as well”.
He stated alongside minimal bowling value will increase, it has not put up value on its foods and drinks after a menu overhaul “to keep the offer as good value as possible”.
Mr Burns added: “As we navigate the current economic landscape, we understand that many of our customers are facing challenges such as rising living costs and higher interest rates.
“This is why we continue to focus on providing a high-quality leisure experience that offers great value for money.”
The group stated it stays aligned with full-year revenue steerage and on observe for brand spanking new openings, with plans for a minimum of three a 12 months.
It has additionally seen guests spend more cash on snacks and sharer meals after introducing an easier meals menu, with comparable gross sales up 9% for meals and 1.7% for drinks over the primary half.
Hollywood Bowl opened two new centres within the UK over the primary half, taking its complete bowling and mini golf venues to 69, whereas additionally rebranding three websites and refurbishing 5 centres.
Over the ultimate six months, it goals to open one other centre – in Merry Hill delivery centre within the West Midlands – in addition to finishing “at least” 4 extra refurbishments.
The firm has additionally been engaged on refurbishing its venues, together with by introducing “pins on strings” expertise in its bowling alleys, which is in place in 48 websites or 75% of its UK centres, with one other 5 earlier than the 12 months finish.
It is investing a document quantity over the total 12 months – after spending £11.3 million on its property over the primary six months as a part of wider goals to open 15 to twenty new centres by the top of the 2024-2025 monetary 12 months throughout its operations within the UK and Canada.
The group has additionally been investing on photo voltaic panels on lots of its venues to assist maintain its energy payments down and to be extra environmentally pleasant.
It has spent round £3.5 million to this point including these to 26 websites and is seeking to lengthen it to 35 places in complete.