Dive Brief:
- Home Run Dugout, an eatertainment concept featuring indoor, soft-toss baseball, secured $22.5 million in Series A funding led by Lagniappe Capital Partners with follow-on investment from BCS Capital and ongoing support from existing investors, the company said in an email to Restaurant Dive on Monday.
- The company will use the funds to expand its Houston location, hire additional executives, pursue licensing and open new locations.
- Eatertainment chains have recently secured funding from private investment firms, with Batbox, another baseball-focused eatertainment chain, and Five Iron Golf gaining millions in funding this year.
Dive Insight:
Eatertainment chains are expanding rapidly in the U.S. as consumer demand for experiential dining post-pandemic continues to rise. These concepts also generate high average unit volumes, with the likes of Pinstripes and Puttshack sustaining AUVs of over $8 million.
Home Run Dugout opened its first full-scale location in Katy, Texas, located outside of Houston in March 2023. This year, the company completed a $2.7 million expansion of its Katy location, adding 9,200 square feet to the 46,000 square foot venue. The renovation added 10 Batting Bays and a party pavilion for large events. That location now has 22 Batting Bays.
The batting technology includes soft-toss, ground up pitching machines and cageless batting and uses massive projection screens to simulate hitting home runs in major baseball stadiums.
The company plans to open new locations in San Antonio, Texas, and Scottsdale, Arizona, each spanning 65,000 square feet with 34 Batting Bays, the company’s Biergarten Baseball mini field, a full-service restaurant and three bars.
“Customers love our offering, and the Batting Bays continue to outperform, generating nearly three times the revenue of an average Topgolf bay,” Brian McGuire, lead investor and founder of Lagniappe Capital Partners, said in a statement.
Home Run Dugout is also licensing its Batting Bays and related technologies for use inside third-party venue operators like hotels, casinos, resorts, stadiums, sports complexes and entertainment centers.
The company will face some competition with Batbox, a Mexico-based concept, planning to have 25 locations in the U.S. by 2030. That chain plans to open its first U.S. venue in Addison, Texas, early next year. Batbox also uses simulators for its batting experience.