🎳 The Bowling Business Boom
Private equity firms in the US are investing in the bowling industry
Bowling is the largest participation sport in the US where over 67 million people bowl at least once a year, but it isn’t what it used to be. Many bowling alleys have been replaced with high-rise condos and office space while participation in leagues has been declining for decades. One of bowling’s major attractions is that it is a lifetime sport inclusive of all ages and people with major physical disabilities.
Bowling is a $5 billion industry, generating above average levels of return on investment and strong cash flows. Failures are low and rare and the industry’s standing among lenders is strong.
Bowlero, the biggest company in the world, has grown rapidly in recent years and went public on the New York Stock Exchange in 2021. In 2024, they reported their best year, generating over $1 billion in revenue, and over 30 million people visited its bowling locations. Bowlero currently owns over 325 locations across North America and is looking to expand and acquire 3,500 independently-owned bowling alleys which are cheaper and quicker than building new facilities.
Decades ago, bowling was a popular, family-friendly activity with affordable prices. With the rapid growth and strategy of Bowlero, some people feel that Bowlero doesn’t care for the bowling culture and only is concerned with capitalizing as a monopoly because of steep prices for games and concessions.
But if those independently-owned bowling alleys aren’t purchased by Bowlero and its partners, what would become of them? The bowling industry is going through a revival because of the technological and digital upgrades, “upscale” dining options, fancy cocktails, and different entertainment options that small owners can’t afford.
We see this as an opportunity to get together with your friends and buy a bowling alley.