Hollywood Bowl reels in value-seeking families but says Budget impact ‘painful’
Chief executive Stephen Burns said the ten-pin bowling operator held on to the post-Covid boom in leisure demand.
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Your support makes all the difference.The boss of Hollywood Bowl has said keeping its prices low has helped attract families looking for value-for-money entertainment but cautioned over the cost impact of “painful and unexpected” Budget tax measures.
Chief executive Stephen Burns said the ten-pin bowling operator has held on to the post-Covid boom in leisure demand.
The company, which has 72 centres in the UK and 13 in Canada, reported revenues of £230.4 million for the year to the end of September, about 7% higher than the previous year.
Compared like-for-like, which strips out the impact of new centre openings, sales edged up 0.2%.
Mr Burns said this came off the back of a “phenomenal” 2023, with the group managing to achieve another year of record sales as demand remained strong.
People are looking for value which is why we've been really careful with our pricing to make sure we've remained the most competitive offer in an increasingly competitive environment
“This year we managed to hold on to that post-Covid increase in people using experiential leisure,” the chief executive told the PA news agency.
“People are looking for value which is why we’ve been really careful with our pricing to make sure we’ve remained the most competitive offer in an increasingly competitive environment.”
Overall prices increased by 0.9% year-on-year, he said, with the cost of bowling increasing by 20p.
“UK families remain under pressure from cost-of-living challenges and we are proud that we can still offer a family of four a game of bowling for £26, even at peak times,” the company said.
The average spend per person also increased during the year, to £11.05, which reflected people using amusement machines and buying more food and drink during trips to the bowling centre.
Meanwhile, Mr Burns said the Government’s autumn Budget, delivered in October, was “clearly painful and unexpected”.
The business estimated the annual cost impact of the higher employer national insurance rate, set to come into effect from April, will be about £1.2 million.
But he said Hollywood Bowl was “better placed than most” to mitigate the higher tax bill, and had no plans to increase prices for customers or change staffing levels as a result.
“We can make efficiencies elsewhere in the business… to try and mitigate against these costs, so we don’t see a short-term requirement to be putting up costs,” he told PA.
Hollywood Bowl has plans to operate 130 centres over the next decade, including opening four new venues in the UK next year.
Nevertheless, shares in the company were down about 8% on Tuesday morning after it reported an adjusted pre-tax profit of £45 million for the year, down from £47.5 million in 2023.
Julie Palmer, partner at restructuring specialist Begbies Traynor, said: “In the wake of Labour’s tax-heavy Budget, suppressed consumer confidence will likely remain a challenge for the bowling operator, which must pull out all the stops to entice cash-strapped customers to spend on days out.
“As the cheapest major operator in the UK, Hollywood Bowl could deliver a bumper Christmas performance as an attractive option for an affordable night out for families looking for some competitive fun over the all-important festive period, but it will have to stay innovative and keep prices down if it’s going to thrive in an ever more competitive landscape next year.”