Dive Brief:
- Topgolf CEO Artie Starrs will resign from the company, parent Topgolf Callaway said in a Thursday press release. He will remain with the firm through September to help with the transition.
- Starrs is leaving to become CEO at an undisclosed company. Topgolf Callaway is searching for his replacement. Starrs has been Topgolf’s CEO since 2021, according to his LinkedIn profile. He previously spent more than seven years at Pizza Hut.
- Starrs’ departure will delay the spinoff of Topgolf to 2026 instead of this year, Chip Brewer, president and CEO of Topgolf Callaway Brands, said in a statement.
Dive Insight:
Callaway merged with Topgolf in 2021 to bring the driving range and golf products company under one umbrella. But after a few years together, the combined business is planning to break up with Topgolf Callaway planning to sell off 80% of Topgolf. The separation will allow management to simplify its operational structures, boost capital allocation and improve its strategic focus.
During Starrs’ time at Topgolf, the eatertainment chain grew from 67 U.S. venues in 2021 to 96 domestic venues as of the first quarter, according to a 10-K filing.
However, Topgolf has struggled with growing revenue. In the first quarter, company revenue declined by 6.9% to $394 million compared to the year-ago quarter, where it made about $423 million, according to an earnings release. Topgolf’s same venue sales were down 12% but that drop was within the company’s expectations.
Topgolf remains popular with consumers, especially among people with an annual household income of $100,000 or more. However, middle-income consumers have found Topgolf too expensive. The company is working to improve its value proposition with things such as Sunday, Funday and Topgolf Nights, Brewer said during a May earnings call. Sunday Funday, in particular, helped boost traffic 20%, according to an earnings presentation.
“We are pleased with Topgolf’s second quarter financial results and improving same venue sales trends, which reflect the significant actions taken this year,” Brewer said in the press release about Starr’s departure.
