Hollywood Bowl Group plc (BOWL · LSE)
Cheap Nights Out, Big Margins
Britain's largest ten-pin bowling chain sells a night out that a family of four can afford for under £26. The real money comes once people are through the door, from arcade games, food and drink, which is where the company makes its profits.
Bull case for Hollywood Bowl Group plc
Arcades, food and drink lift spend per visit
Extra spending inside the centre earns more than the bowling itself, raising money made per customer.
Cheapest branded bowling keeps families coming
A family of four bowls for about £26, which holds demand up when budgets tighten.
Canada gives it a second country to fill
It is the biggest branded operator in a fragmented Canadian market and its number of venues here continues to grow.
Bear case for Hollywood Bowl Group plc
Bowling visits can fall in hot, dry weather
Long spells of fine weather pull customers outdoors and away from indoor leisure centres.
Wage and property costs keep rising
Minimum wage rises, employer taxes and business rates all push up the cost of running centres.
New centres can disappoint and be written down
Sites facing tough local competition have been written down when trading fell short of plan.