Dave & Buster’s is stepping up to meet a rising demand for food and fun

Dave & Buster’s, which went public in 2014, is growing at a steady clip, appealing to developers with holes in their tenant rosters and a need to appeal to consumers with big pockets — namely, the Millennials.

“We expect to open 12 new stores this year, representing 13 percent unit growth,” CEO Steve King said in June, as the company announced record results for the quarter ended April 30. Total revenue increased by about 16 percent, to $304.1 million, as the number of units surpassed 100 on the way to a stated goal of 200 in the U.S. and Canada. The store count grew by 14 percent over the past year.

Dallas-based D&B owns and operates venues across 34 states and in Canada that combine games, music, sports, televised events, alcoholic beverages and meals.

GGP is one of the chain’s largest partners. “We have only begun to scratch the surface with our D&B partnerships,” said Chris Pine, GGP’s senior vice president of big-box development. “Since 2013 GGP has opened six locations, and an additional eight will open throughout the next year. Dave & Buster’s is a valued partner, and they have a fantastic concept that provides all-encompassing experience, and our shoppers love it.”

Vestar Capital Partners, which is developing and repositioning assets in the Western U.S, is sold on the concept too. “We have three locations throughout our portfolio with Dave & Buster’s, and they are always a consideration for our developments,” said Jenny Cushing, the company’s vice president of leasing. “They help us pull other restaurants and soft goods that want to be near them.”

Vestar’s latest alliance with D&B is at The Gateway, in Salt Lake City, which finds itself in competition with the nearby City Creek mixed-use center. The Gateway is emerging as the go-to entertainment playground for that city’s Millennials, its owners say. “Something dramatic had to be done to compete, but on a different level,” said Cushing. The entertainment megaplex was what the city needed, she says. “As we revitalize The Gateway to be the premier entertainment destination in the Salt Lake City area, Dave & Buster’s is a hip, social and fun way to draw in our ideal Millennial workers,” Cushing said. In this case, it will be a 45,000-square-foot Dave & Buster’s set up where the old food court used to be.

Vestar’s latest alliance with D&B is at The Gateway, in Salt Lake City, which finds itself in competition with the nearby City Creek mixed-use center. The Gateway is emerging as the go-to entertainment playground for that city’s Millennials, its owners say. “Something dramatic had to be done to compete, but on a different level,” said Cushing. The entertainment megaplex was what the city needed, she says. “As we revitalize The Gateway to be the premier entertainment destination in the Salt Lake City area, Dave & Buster’s is a hip, social and fun way to draw in our ideal Millennial workers,” Cushing said. In this case, it will be a 45,000-square-foot Dave & Buster’s set up where the old food court used to be.

Meanwhile, GGP is working with Seritage Growth Properties to locate the entertainment-restaurant venues in 30,000 square feet carved out of vacated Sears stores at the Columbiana Centre, in Columbia S.C., and at Willowbrook Mall, in Wayne, N.J.

In April published reports were saying that Seritage is signing on new tenants including Dave & Buster’s units, at substantially higher rents than the closing Sears properties ever paid. GGP is working with Seritage at Woodbridge (N.J.) Center, where Dave & Buster’s is going into the Sears wing. The concept is also filling a vacated Sports Authority at GGP’s White Marsh Mall, in Baltimore, and a former Forever 21 at Riverchase Galleria, in Birmingham, Ala.

Brixmor Property Group, New York City, is moving a Dave & Buster’s into shuttered Sports Authority spaces at Arundel Mills, in Hanover, Md., and The Commons at Wolfcreek, in Memphis, Tenn. And as part of a multiphase redevelopment of the Shoppes at Carlsbad (Calif.), Rouse Properties has added a 40,000-square-foot Dave & Buster’s. “The new location is the ideal destination for San Diego’s North County to eat, drink, play and watch sports,” said Cory Gallant,” the mall’s general manager.

“This speaks to GGP’s curation strategy,” said Pine, “which is to bring new uses to our properties that the community wants and have come to expect from our regional shopping centers.”