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Topgolf, the global leader in tech-enabled sports entertainment, has officially announced a long-term strategic partnership with Family Entertainment Group (FEG), a move that designates the seasoned operator as Topgolf’s primary arcade partner for nearly 100 venues across the United States. This collaboration, which underwent a rigorous pilot phase earlier this year, marks a significant expansion of Topgolf’s "eatertainment" model, aiming to transform its facilities into comprehensive, all-day destinations that cater to a broader demographic beyond traditional golf enthusiasts. The rollout is currently underway and is scheduled for a phased implementation through December 2026, ensuring that each of the 94 participating locations receives a customized entertainment suite tailored to its specific local market.
A Strategic Shift in the Eatertainment Landscape
The partnership arrives at a pivotal moment for the hospitality and entertainment industry. As consumer preferences shift toward "competitive socializing"—a trend where dining is paired with high-engagement activities—Topgolf is doubling down on its commitment to provide multi-layered experiences. By integrating FEG’s expertise in arcade design and management, Topgolf is effectively diversifying its revenue streams and increasing the "dwell time" of its guests.
Historically, Topgolf has been synonymous with its high-tech hitting bays. However, the company has recognized that to maintain growth and maximize the utility of its large-scale real estate, it must offer more than just golf. The inclusion of bespoke arcade environments allows the brand to capture a wider audience, including families with young children, corporate groups looking for varied team-building activities, and late-night patrons seeking a high-energy atmosphere.
Chronology of the Rollout and Pilot Success
The decision to scale the partnership nationwide was not made in a vacuum. It followed an extensive and highly successful pilot program launched in May 2024. This test phase involved seven high-traffic Topgolf venues located in key markets:
- Texas: Dallas, Fort Worth, The Colony, and Grand Prairie.
- Florida: Orlando and Lake Mary.
- Georgia: Buford.
During the pilot, FEG curated arcade and game-room experiences specifically designed to match the guest profiles of these locations. For instance, venues with a higher concentration of families saw an emphasis on redemption games and prize centers, while locations with a more robust nightlife scene integrated interactive, adult-centric gaming options. The guest response was overwhelmingly positive, with internal data indicating increased satisfaction scores and higher secondary spending within the venues.
Following the success of these seven sites, the formal rollout began in June 2024. The transition is being executed in waves, with the final installations expected to be completed by the end of 2026. This staggered approach allows Topgolf and FEG to meticulously design each space, ensuring that the new gaming elements integrate seamlessly with existing bar, lounge, and dining areas.
Expertise of the Family Entertainment Group (FEG)
Family Entertainment Group brings decades of specialized experience to the table. As a leading developer and operator of entertainment attractions globally, FEG has a proven track record of managing arcades within complex hospitality environments, including major resorts, casinos, and family entertainment centers (FECs). Their role in the Topgolf partnership extends beyond merely providing machines; they are responsible for the holistic design, equipment procurement, maintenance, and operational management of the game rooms.
Rex Jackson, CEO of FEG, highlighted the synergy between the two companies, noting that while Topgolf provides the innovative hospitality infrastructure, FEG provides the specialized gaming expertise required to keep guests engaged. This division of labor allows Topgolf’s management to focus on its core golf and beverage operations while FEG ensures the arcade offerings remain cutting-edge and profitable.
Tailored Experiences: Moving Beyond One-Size-Fits-Old
A cornerstone of this partnership is the rejection of a "one-size-fits-all" strategy. Instead, Topgolf and FEG are employing a data-driven approach to customize the entertainment mix for every venue. This customization manifests in several ways:
Interactive Augmented Reality Darts
In many locations, particularly those with a strong bar and lounge presence, FEG is installing augmented reality (AR) darts. Unlike traditional dartboards, AR darts use projection mapping and digital tracking to offer various game modes, making the sport more accessible and visually engaging for casual players. This addition targets the "social seeker" demographic—adults who enjoy competitive gaming in a premium bar setting.
Family-Friendly Redemption Centers
For venues that draw heavy weekend family traffic, the focus is on "redemption" gaming. These rooms feature a mix of classic and modern games where players earn digital tickets that can be traded for prizes. FEG’s expertise in prize hub management ensures a high-quality selection of merchandise, which serves as a significant draw for younger guests and encourages repeat visits.
Immersive and Classic Arcade Games
The lineup at each venue is curated from a vast portfolio of titles, ranging from high-definition racing simulators and immersive VR experiences to nostalgic arcade classics. By balancing "high-tech" with "high-touch" experiences, Topgolf ensures that the game rooms appeal to multiple generations simultaneously.
Market Context and Economic Implications
The partnership is a clear indicator of the robust growth within the Family Entertainment Center (FEC) market. Industry analysts estimate the global FEC market will continue to grow at a compound annual growth rate (CAGR) of over 10% through the end of the decade. Topgolf’s parent company, Topgolf Callaway Brands Corp. (NYSE: MODG), has been vocal about its strategy to enhance venue profitability through increased "non-golf" revenue.
By outsourcing the arcade operations to FEG, Topgolf minimizes the operational complexity of managing diverse gaming hardware while benefiting from a revenue-sharing model that capitalizes on FEG’s operational efficiencies. This "plug-and-play" expertise allows Topgolf to upgrade its guest experience without the steep learning curve associated with arcade management, such as game rotation, mechanical repairs, and redemption logistics.
Furthermore, the addition of arcades helps mitigate the impact of weather and bay occupancy limits. On days when hitting bays are at full capacity, the arcade provides an immediate "overflow" activity, preventing potential guests from leaving the venue due to long wait times.
Leadership Perspectives
David McKillips, Chief Executive Officer of Topgolf, emphasized that the goal is to become the "Ultimate Sports, Entertainment, and Golf Destination." McKillips, who joined Topgolf with an extensive background in the theme park and attractions industry (including a long tenure at Six Flags), understands the value of a multi-attraction ecosystem.
"Bringing Family Entertainment Group into nearly 100 of our venues adds another way to play and connect," McKillips stated. "By thoughtfully curating experiences for each location, we’re giving our guests even more reasons to visit, stay longer, and create memorable moments."
From the FEG side, the partnership represents one of the largest scale-ups in the company’s history. Rex Jackson noted that the scale of 94 locations provides a unique opportunity to demonstrate how high-level gaming expertise can elevate a hospitality brand’s overall value proposition.
Broader Impact on the Hospitality Industry
The Topgolf-FEG deal is likely to set a precedent for other large-scale hospitality chains. As the lines between dining, drinking, and playing continue to blur, "ancillary" entertainment is becoming a primary driver of foot traffic. Competitors in the space, such as Dave & Buster’s, Bowlero, and emerging "social gaming" concepts like Puttery or Flight Club, are all vying for the same discretionary spending. Topgolf’s move to professionalize and expand its arcade offerings ensures it remains a formidable competitor by offering the most diverse range of activities under one roof.
The environmental and spatial design of these new game rooms also reflects a modern aesthetic. Moving away from the dimly lit, noisy arcades of the past, the FEG-designed spaces at Topgolf are integrated into the venue’s sleek, modern architecture. They utilize digital platforms for game play and ticket redemption, aligning with Topgolf’s tech-forward brand identity.
Conclusion and Future Outlook
As the rollout continues through 2025 and 2026, the industry will be watching closely to see how these additions affect Topgolf’s bottom line and guest retention rates. If the pilot results are any indication, the partnership will successfully transform Topgolf venues from "driving ranges with food" into true multi-dimensional entertainment hubs.
By the end of 2026, nearly every major Topgolf venue in the United States will feature a FEG-managed gaming experience. This evolution underscores a broader trend in the American economy: the "experience economy" is no longer just about the main event, but about the quality and variety of every moment a guest spends within a venue’s walls. With FEG’s gaming expertise and Topgolf’s massive reach, the two companies are poised to redefine what it means to go out for a night of sports and entertainment.
