Connect with us

Golf

Five Iron Golf Gets $20 Million Investment From Danny Meyer’s Equity Fund

Published

on

To help fuel continued expansion and enhancement of its indoor golf experiences, Five Iron Golf said it has received a $20 million minority investment from the growth equity fund co-founded by restaurateur Danny Meyer, the founder and Chairman of Shake Shack
SHAK
as well as the owner/operator of New York City restaurants like Union Square Café, Gramercy Tavern, and The Modern.

Five Iron Golf now has 24 U.S. locations, including a new flagship facility at Grand Central Station in New York City that has 15 golf simulators, two full-service bars, and lounge areas with activities such as air hockey, billiards, and shuffleboard. It’s the sixth NYC venue for the company, which originated in Manhattan in 2017 and has since expanded to Baltimore, Chicago, Cincinnati, Cleveland, Detroit, Indianapolis, Las Vegas, Philadelphia, Pittsburgh, Washington D.C. and Seattle.

Five Iron Golf is billed as an “urban golf experience” that combines golf, technology, and entertainment in an inclusive environment, allowing participants of all ages and skill levels to play, practice and party from early morning until late night.

In addition to the financial investment from Meyer’s Enlightened Hospitality Investments (EHI), Five Iron Golf brings aboard considerable expertise and experience in hospitality and consumer-facing businesses. Both Meyer, who is widely recognized as a trailblazer in the hospitality industry, and fellow EHI co-Founder and Managing Partner Peter Mavrovitis will join Five Iron’s board of directors and provide strategic guidance on the company’s future direction, growth, and experiential component. This is EHI’s first venture in sports, counting companies like Clear, Madison Reed and a host of culinary brands in its portfolio.

“This investment is a testament to our belief in Five Iron’s vision and commitment to opening the world of golf both to enthusiasts and avid amateurs who want to practice their inner love for golf without having to visit the links,” said Meyer, who is also joined by Mark Leavitt and Harry Seherr-Thoss in the effort to expand Five Iron’s flagship locations and franchising opportunities.

The company is actively exploring expansion opportunities and has secured franchise locations in St. Louis, Missouri; Erie, Pennsylvania; Louisville, Kentucky; Westchester, New York; and Yukon, Oklahoma. Internationally, the company is developing locations in Australia and Dubai.

Five Iron Golf CEO and co-Founder Jared Solomon said the partnership between his company and EHI underscores a shared vision to revolutionize the booming golf entertainment sector.

The National Golf Foundation recently reported that almost 33 million Americans played off-course forms of golf (away from a golf course) in 2023, with more than 6 million hitting golf balls with a club in a simulator within the past year.

Golf simulator participation has risen 73% in the U.S. compared to pre-pandemic levels, according to the NGF. Successful consumer franchises like Five Iron, Topgolf Swing Suite, X Golf and Golfzon Social continue to expand amid a landscape that also includes simulators at green-grass golf facilities, golf retail stores, one-off commercial locations, and various club-fitting stores, not to mention the growing number of home simulator setups.

“With this backing, we are poised to accelerate our growth, enhance our offerings, and continue delivering an unparalleled experience for golf enthusiasts and newcomers alike,” said Solomon. “Together with Danny and EHI, we are embarking on an exhilarating chapter of innovation, expansion, and unforgettable moments on the green.”

This is the first notable outside partnership for Five Iron Golf since Callaway Golf made a $30 million investment in the company in 2021.

Continue Reading