Swingers will continue to prioritise the US for expansion as it aims to reach a 15-strong global estate by 2026, co-CEO and co-founder Matt Grech-Smith tells MCA.
Competitive Socialising – the crazy golf concept’s London- and New York-based parent company – announced the closing of $52m in Series-C growth capital yesterday (27 July), with the investment part funded by Cain International and a number of third-party institutional investors.
“It’s not just about rolling out and doing as many sites as possible,” Grech-Smith says. “It’s an expensive venue to bring to the market, so it’s more about maintaining the core experience.
“We’re planting flags in places like Las Vegas, New York, London, and Dubai, and will continue to do more of those.”
Swingers further announced its first franchised site in Bluewaters Island, Dubai, opening in spring 2024 in partnership with Daud Investments, as well as a flagship Las Vegas venue opening in Mandalay Bay Resort and Casino in fall 2024.
While the business may consider future opportunities in the UK, the US is very much the focus.
“We can see a clear roadmap in the US,” Grech-Smith adds. “Our three US venues are trading really strongly.
“These cities have a high population density and potential revenue. We’d love to open more in the UK over time – and we’re constantly reviewing that – but the recent funding is mainly for US expansion.”
Swingers currently operates one site in New York City and two in Washington D.C., with further A-list US cities under consideration.
Trading in 2023 has been “on par” with 2022, attributed to the experiential nature of the concept.
“People are definitely feeling the pinch but venues like us do well in that situation,” Grech-Smith says. “When people are more discerning, they’re coming to us as we’ve got great food and a fully rounded, immersive experience.
“Companies are also placing more emphasis on social gatherings as they save money on office rents.”
Rail strikes have been a major concern due to their effect on corporate revenue – a major part of the business.
“It’s been a constant loss of revenue but we’re seeing spend per head stay pretty consistent.”
As Swingers expands, the concept will remain centred around street food, craft cocktails, and crazy golf in an immersive environment.
“Our product is really differentiated in terms of the adult offer,” Grech-Smith says. “It’s over-18 in the UK and over-21 in the US, more of a nightlife destination.”
The food and drink offer will continue to showcase recognisable brands that resonate with customers, rather than a non-branded in-house offer, according to him.
“It represents great quality at a democratic price point.”
While Swingers has seen growth in lower-calorie items and low- and no-alcohol sales, alcohol remains a huge part of sales.
It will continue to invest in sites to keep them “fresh and interesting,” as the consumer becomes ever more discerning.
“We’re lucky we’re got the size and buying power. It does help in this market.
“We’re also a hospitality business with a third revenue stream in activity. That sets us apart so we’re fortunate, although we do feel the pinch.”
Swingers expects to turn over $60m in 2023 and bring in nearly $150m in annual revenue by 2026.
