Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q1 2017 Earnings Conference Call - Final Transcript

Jun 06, 2017 • 05:00 pm ET

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Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q1 2017 Earnings Conference Call - Final Transcript

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Q & A
Operator
operator

(Operator Instructions) Nicole Miller, Piper Jaffray.

Analyst
Nicole Miller

Thank you. Good afternoon. I just had 2 quick questions. Thinking about the Food and Beverage versus Amusement sales, what would you point out as similarities or differences between traffic trends? I know you give us the price versus traffic and mix for Food and Beverage, and you also talked about a mix shift, I think, negative.

But just wondering if you could put some color around that and how that would compare to Amusement trends and just wondering, is there a way you can look at Amusement, like number of plays or any metric that compares to traffic on that end? Thanks.

Executive
Stephen King

Well, sure. First of all, as we said, and I just said in my comments, I mean we lead with Amusement. It is the point of differentiation for us and really the focus of our advertising. We believe that helps to fuel footfalls and really is the primary reason for the visit. We're very cognizant of the fact that driving F&B at the expense of amusements would really be a bad trade for us, given the margin differential. So we want anything that we would do to be incremental.

To directly answer your question, what we are seeing is increases in the number of card counts, for example, and decreases in the number of items sold per card, if you will. So that's really what the issue is for us. And just to put a little context behind it, I mean we've outperformed Knapp over the last three years by over 1,000 basis points.

But having said that, we really feel like this is an area that we're going to need to address and over the next several quarters, we're going to test several F&B initiatives to see if we can increase that attachment rate and drive incremental Food and Beverage, including some things with respect to the menu; as both items and number of items, pricing, including promotional and some service enhancements.

One of the things that we just completed in the second quarter was our Symphony rollout. That enables us to do things like pay at the table, some handheld devices, line-busting. So, really trying to reduce the friction that we have for some of our guests in having those food and beverage transactions.

Analyst
Nicole Miller

Thank you. And just a second and final question, can you talk a little bit about what you're doing from a hiring, training, and retention standpoint as you hit your 100th store opening, but you're also still clearly at a pace of double-digit development with still the ability to double the unit base. So how are you looking from a human capital standpoint? Thanks.

Executive
Stephen King

So, one of the advantages that we have right now is, our retention rate is substantially better than what you would see in the comparable category for People Report. So where People Report turnover now has risen to over 30% in management, and it's close to or if not slightly over 100%