Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2018 Earnings Conference Call - Final Transcript

Dec 11, 2018 • 05:00 pm ET


Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2018 Earnings Conference Call - Final Transcript


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Brian Jenkins

designed to encourage repeat gameplay. Looking ahead, we have an exciting lineup for Q1 of 2019. We are happy to announce the planned launch of our third VR attraction that is proprietary title to D&B. Based on the Star Trek movie franchise, we are well on our way to building the strong library of VR content and remain excited about its potential.

Q1 will also include Marvel's Contest of Champions, featuring highly popular characters from the Marvel Universe. This title is also proprietary to us and one of the key elements of the experience will be collectible cards available only at D&B which should encouraged repeat game play.

With respect to F&B, the team continues to focus on quality, simplification and accessibility. We are planning to roll out new premium choice steaks and expect to be complete by prior to our February menu launch. This follows quality upgrades to our burger and chicken earlier this year. We will be re-crafting and re-branding some of our all-time favorites such as Dave's Double Cheeseburger and Parmesan Chicken Alfredo. To highlight improvements in quality, we are introducing healthy offerings such as Zoodles, zucchini based noodles guests can substitute in pastas.

With respect to alcoholic beverages, we will be adding fresh juices and (inaudible) systemwide to further enhance flavor. We've seen an uptick in our food quality scores this year, which is encouraging, and we believe this combination of improved ingredients, as well as better execution is the right recipe.

With our February 2019 menu launch, our focus on simplification will continue, and we do plan to further reduce the size of the food menu slightly. This is on top, if you recall, of about a 20% reduction early in 2018. In order to improve accessibility and capture more food occasions, we recently initiated a quick casual test in our Dallas store. We have converted one of our special event party rooms, adjacent to the arcade, into a highly visible area where guests can order street tacos and drink. The interior includes a three-dimensional food truck facade and tables and walls and the cuisine includes tacos with a twist. This area is designed to add fun to the guest experience, while serving their need for convenience and speed. We continue to view quick casual as complementary to our casual dining offerings at our facilities.

Our second strategic priority is improving service and reducing friction. We continue to test and implement service model changes and improve technology. At select stores, we have to deploy front desk guest ambassadors that guide our guest experience, kiosks attendance that facilitate interaction with the technology, and hosted feeding in the sports lounge to improve flow during busy times.

Technology initiatives include kiosks upgrades and a newly implemented workforce management system, which is now available systemwide. In addition, we recently began rolling out RFID-enabled Power Cards, currently in over 20% of our stores, which should reduce friction and activating gain.

Our third priority is to ensure we're reaching our audiences