How Smashburger Founders’ Sports Bar Chain Is Reshaping The Game-Day Experience

Core Insights - Tom's Watch Bar has rapidly expanded from four locations in 2019 to 18 locations in 2024, with plans for further growth, aiming to open 10 to 13 new outlets annually [2][12] - The chain has achieved a core business revenue increase of approximately 4% year-over-year, with a run rate exceeding $100 million and average sales of over $6 million per location [3][20] - All locations are profitable, with restaurant-level margins exceeding 25% on average, highlighting the chain's successful business model in a competitive market [3][20] Expansion Strategy - Tom's Watch Bar is strategically located, with 15 of its 18 units adjacent to stadiums or arenas, capitalizing on foot traffic from sports events [5][12] - The company plans to open two more locations in 2025 and an additional 10 to 13 each subsequent year, indicating a robust growth trajectory [2][12] - The chain has partnered with sports franchises to enhance marketing efforts and drive traffic, leveraging relationships with teams to connect with potential customers [18][22] Market Position - Despite competition from established chains like Buffalo Wild Wings, Tom's Watch Bar has carved out a niche by focusing on a unique sports-centric dining experience [3][20] - The chain's innovative approach includes a meticulously curated TV schedule to attract sports fans, differentiating it from traditional sports bars [10][11] - Recent trends in sports-anchored mixed-use developments present significant opportunities for growth, with research indicating potential investments exceeding $100 billion in the next 15 years [14][15] Operational Insights - The company has adapted its service model to encourage customers to linger during sports events, resulting in high sales during peak hours [11][12] - Tom's Watch Bar is cautious in its expansion, conducting thorough investigations into potential locations to forecast traffic and scrutinize demographics [21][22] - The chain is currently in the process of raising $50 million in equity to fund its expansion plans [22]