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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Dave & Buster’s CEO spells out everything that’s wrong with his | |
company (and how he’ll fix it) | |
By David Goldman, CNN | |
Updated: | |
12:14 PM EDT, Tue September 16, 2025 | |
Source: CNN | |
Dave & Buster’s new CEO is not holding back. | |
Tarun Lal, who took the reins in July, said on his first earnings call | |
with Wall Street analysts Monday night that his company is in more | |
trouble than previously believed. Profit growth continued to shrink, | |
sales have flatlined, and the stock is sinking sharply: down 17% | |
Tuesday. | |
With just a couple months under his belt, Lal has the advantage of | |
using a tried and true new-CEO strategy: blame the last guy. In a | |
presentation to analysts, Lal detailed a laundry list of prior Dave & | |
Buster’s () strategies that were broken. | |
“In reviewing our performance, it became very clear where our | |
approach was falling short,” Lal said on the call. “We’re not | |
waiting to make changes and implement our refocused strategy. We are | |
making changes and implementing them real-time.” | |
Lal said the company has started advertising on TV again and reduced | |
the number of promotions it offers. It changed up its menu, pushing | |
more profitable entrees over appetizers. The chain also introduced new, | |
streamlined communications initiatives and started re-training | |
employees. It launched 10 new games in locations and started making | |
customers aware of its remodeling efforts. | |
It’s early days, but Lal said the results have already been fruitful. | |
Dave & Buster’s food and beverage business is turning “solidly” | |
positive, Lal said, and newly remodeled stores are now outperforming | |
older stores by a substantial margin. | |
But investors have heard this story before. Sales at Dave & Buster’s | |
have been on the downswing for quite some time, and Lal acknowledged | |
that the trend is continuing this quarter. Past management unveiled a | |
growth strategy to help the company rebound, but it didn’t work – | |
and the chain now has a new leadership team. | |
Lal said past leaders may have been onto something, but the all-at once | |
change strategy was inefficient. | |
“As you all know, our company unveiled a comprehensive strategic plan | |
at our investor day in 2023,” Lal said. “I believe this plan had | |
the right ideas. We just attempted to implement too much at the same | |
time.” | |
Lal noted that a rebound in inflation threatens to hurt the company in | |
the near-term as customers look for more value for their money. But the | |
CEO said his new marketing efforts can help overcome that. | |
“With value, remember, it’s all about trust. It’s not how much | |
you’re paying; it’s about the value that you’re actually | |
receiving from the brand,” Lal said. “So I really believe that a | |
key part of the pivot that we are making is kind of really simplifying | |
the messages and making it really transparent for our customers on what | |
they are getting for the money they are spending.” | |
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