Press / Pros N' Hackers  

TOPGOLF COMES TO AMERICA Golf Range
A NEW PARADIGM FOR GOLF RANGES?


TOPGOLF KINGSTOWNE ALEXANDRIA, VIRGINIA
Back in the Spring of 2001, GOLF RANGE MAGAZINE wrote a cover story on England's groundbreaking TopGolf Game Centre, built in London. At the time, we mentioned we'd be in the lead position to cover any developments in the United States. Well, that time has arrived, as TopGolf has landed in Virginia, with the breathtaking transformation of the old Mid-Atlantic Golf Driving Range into the U.S.'s first TopGolf Game Center. This magazine is pleased to offer an exclusive look at this revolutionary facility located in Kingstowne, Virginia, just outside of Alexandria. In mid-September, TopGolf USA formally opened the new, $4.5 million, 78-stall, two-level facility. Our staff attended the TopGolf Kingstowne grand opening party and came away with the opinion that this development marks a milestone in the U.S. golf range industry. In fact, not only is this the most significant range development since The Golf Club at Chelsea Piers (built in the mid-1990s) but the golf industry may one day look back on this project as a new paradigm for the industry. The genius of the TopGolf concept is a result of the successful combination of traditional golf elements, enhanced customer service and modern technology. With one foot planted firmly in the golf industry and the other planted solidly in the leisure market, this should be a potent recipe for success.


WORLD GOLF SYSTEMS: THE I.D. BALL SYSTEM
For those not familiar with the TopGolf story, it dates back to 1997 when brothers Steven and David Joliffe, avid golfers and owners of a successful customer service and customer satisfaction research company (clients such as Virgin Airlines, Microsoft and AT&T) were exploring ways to enhance their own golf range experience. They set up a company called World Golf Systems and explored ways to create a range golf game concept. They experimented with a target green sensor that might somehow read bar codes on golf balls. After some trial and error, their engineers moved away from a bar code concept (too much dirt on the ball!) and came up with the idea of implanting a tiny microchip inside each of the golf balls. They also came up with a patented target green that is equipped with "smart" compartments that catch the balls and then funnel them through a sensor that reads the microchip. Data is then sent via real time back to the golfer who "belongs" to the ball via a flat screen monitor at his/her hitting bay. Information such as the exact distance as well as an assigned point value based on closeness to the pin is done with easy-to-read visuals. This entire system is called the ID Ball System, and it's this technology that is the heart of World Golf Systems. World Golf Systems licenses their ID Ball System technology to TopGolf. The first TopGolf facility built in England was the retrofit of the old Jack Nicklaus Golf Center in Watford, England. Today, the Baydrive Group LTD, which has built an additional two TopGolf sites in England, coordinates development in the U.K..


SETTING SIGHTS ON THE U.S. MARKET
Efforts for growth into the U.S. market have been underway for the past few years. TopGolf USA was formed with a focus on owning and operating sites throughout the U.S. The holding company of TopGolf U.S. is Golf Entertainment International. There are about 30 private investors behind the U.S. efforts, consisting of both American and British investors. The executive board of directors consists of: Rick Grogan, Chairman; Peter Allport, COO; Eric Wilkenson, Finance Director; David Main, Operations & Development; There are also two non-executive directors, Tom Mendell and Erik Anderson, whose Seattle based company, West River Capital is the institutional investor in the group. Money from the investors has been raised for a preliminary two sites. Overall the group feels there is a potential for up to 150 sites around the U.S.


FINDING THEIR WAY TO METRO-DC
The initial focus for the group was on the East Coast. Specifically, they were looking into opportunities in the metro- New York and Metro-D.C. Market A number of potential targets were identified and meetings with owners arranged. The Kingstowne site emerged as the front-runner. As an existing 8-acre golf range called Mid-Atlantic Golf Center, it was easier to retrofit the site since additional permits were not as problematic. GOLF RANGE MAGAZINE spoke at length with Peter Allport, the COO of TopGolf USA to get his input on the project since he was on-site nearly the entire time. "We met the owners of the Kingstowne site and after a number of meetings, it led to discussions about leasing the land from them. We were able to negotiate a 20 year lease deal with the owners," said Allport who mentioned a final deal was struck in late summer 2004. Allport pointed out that given the hefty investment the group makes to transform a site into a TopGolf Center ($4 million per site), his group needs minimum 20-year leases. "We are interested in only long-term leases. We need 20 years. We won't do 10-year leases. It's just not worth it for us because of the $4-$6 million we spend per site. Anything less than 20 years just won't allow for an adequate return," concluded Allport. Once the deal was struck, construction moved quickly. Their first planning application went in during October of 2005 with final approvals arriving by March of 2005. Although there were no change-of-use permits required, the TopGolf clubhouse footprint requirements of between 8,000 and 10,000 square (i.e. 3,000 sq. foot retail area, 2,000 sq. ft of Food & Beverage, a Golf Academy and corporate room) required some extensive new construction as well as the enclosing of the second tier of the range.


KEMPER SPORTS HEADS CONSTRUCTION EFFORTS
Chicago-based Kemper Sports, a major player in golf course and facility development and operations was the project manager. The point person for Kemper was Kevin Minor. Beginning this past March, excavation and grading began in the landing area with a total of 11 scoring target greens to be built. What most patrons don't see is that under each green is an 8-foot deep excavated area that allows for the locating of sensor equipment and ball tubing. The fairway was also graded using the excavated fill from the target greens and a full synthetic turf landing area was installed by Tour Turf. "Artificial turf is the way we believe in doing it. It's green all year round and we think it came out very well," said Allport. The existing building contained basically the pro shop. TopGolf tried to match the old construction and built a great room with a soaring roof and cupola. In this new space one finds a stylish bar and dining area ringed by flat screen televisions. Construction went very smoothly in part because of the positive support by the community. "We had great support from the local Kingstowne people and the chairman of the Fairfax Board, who said at one of the meetings that this was just the type of facility the community needed because it was a facility for all," added Allport. In fact, it only took 120 days for all the construction to be completed.


SOFTWARE AND HARDWARE AND OTHER MODIFICATIONS FOR THE U.S. MARKET
"What we've done is develop the concept a bit further from its UK base. The technology package remains largely unchanged. One of the key differences we did for the U.S. Market was to enhance the driving target out at 240 yards. We made it bigger and wider than the UK There is a net that captures the ball and drops it down for a reading," added Allport. Ideally, any site they would consider is between 250 and 300 yards. Another area of focus that Allport identifies as a subtle modification is the extra commitment to customer service. TopGolf employs servers, called "Caddies," to walk the tee line and take food and drink orders. Without leaving a bay, up to 5 patrons are able to order a meal or snack and have it delivered right to their hitting bay. This commitment to service carries over to the front counter staff whom have all received extensive training. They will help as "Game Advisors" for the center, educating customers about the four different games at the center.


GAME CONCEPTS
There are a variety of games that the customers can choose from. In England, patrons still prefer the original game, TopGolf. In this game any green can be targeted. Players get to use all their clubs. Hit long and short. It's a game of strategy and not just for the big hitters. One gets rewarded for accuracy by seeing their names on the leaderboard.

TopGolf
This is the basic scoring game. One can aim for any target, hit both long and short clubs. One gets actual feedback in yards and a score in points.

TopPractice
For every shot that lands in a target, exact yardage and position from the pin is given.

TopDrive
A game designed for the long clubs and big hitters. Golfers aim for the furthest 3 targets from 190 yards (Pink) and score. Hit the wrong target and you lose points.

TopChip
An accuracy game using the closest targets (Red, Yellow and Green). Hitting the wrong target will get points deducted.


HOW THE TOPGOLF GAME IS PLAYED
Each player registers at the reception and purchases a Club Card. This is a smart card embossed with the players' name on the card. Additional money can be added to the card. This personalized Club Card identifies the member (user) to the special ID ball system each time they play. The microchip inside each ball is then properly recorded as belonging to the proper golfer.

A ball dispenser then reads the card and allocates 20 golf balls that relay information back to the a flat screen monitor in the bay which provides instant feedback to players.

The I.D range balls are a premium golf ball (Dunlop LOCO) It looks the same, weighs the same and flies the same.

Players can select from a variety of games on the range. These games allow family members and friends to compete against each other simultaneously.

The maximum score in any one game is 400 points. It's possible to score double point by hitting the ball into selected zones indicated on the landing area map found at each bay.

Players can score a hole-in-one in a regulation size gold cup at the center of each target.

Players compete for a place on the electronic leader board displayed in the lobby. The board is instantly updated and displayed at the end of every game.

Each game has a handicap facility so that beginners can play competitively against even the most accomplished golfer. Or you can play by yourself, comparing your score to others at the center via the leader board

Prices start from $5.80 per game for adults and $4.80 for juniors and seniors.


THE TOPGOLF PROCESS
The first step in the TopGolf process is to pay a visit to the front desk attendants. There you can either purchase your personal membership value card or put additional value on the card you already have.

With your card you will proceed to the ball dispenser…insert your card into the dispenser (Carl Jahn, pictured, from Range Servant worked with World Golf Systems to incorporate the ID Ball System into the Range Servant dispensers)… and then…

…proceed to hit golf balls at the various target greens. These targets have multiple collection areas where the balls feed through tubes into the bottom of the green.

At this point, Range Servant designed a ball collection system that vacuums out the balls into a utility vehicle where they are driven back to the main building.



BAR AND RESTAURANT
With an aim to create a fun and sporting atmosphere with large televisions, TopGolf is creating a variety of packages to recruit sports fans. With a competitive menu price point, the facility is specializing in hot and cold food, snacks and wraps, as well as coffee and pastries in the morning. The facility is also offering live jazz music on Thursdays. "We are trying something a bit different, unusual, if you like, to create an environment that will bring people back," said Allport. This piece of the revenue pie is expected to bring in about 15% of revenues.
PRO SHOP
The focus of the pro shop strategy is to recognize that many of the people coming into the facility will be new to the game of golf. The idea is to have a full range of starter kits and kids' merchandise. They have also developed branded TopGolf merchandise. The teaching staff will support custom fitting.


TEACHING AND TRAINING
As part of the branding exercise, TopGolf has established the TopGolf Academy by Mitchell Spearman. Spearman, a highly respected Golf Magazine Top 100 instructor has worked with TopGolf USA from the beginning. Spearman is overseeing all aspects of the academy and will spend time at the facility as well as at his home base, Manhattan Woods Golf Club in New York. In describing TopGolf Spearman said, "I have been involved in the golf industry for over 25 years and this is the most exciting new development in golf that I have ever seen." The director of Instruction is Stephen Moskal who joined from Fair Oaks Golf Park and before that spent a decade as ex-pat golf pro in Paris at Golf de St. Cloud. A member of the British PGA and the European PGA, Moskal is a graduate of Furman University. Other teaching pros include David Oates and Chris Reis. Moskal explained the teaching strategy. "We take seriously our mandate that all TopGolf players are getting better. Accordingly, teachers are required to walk the tee line in the belief that it will lead to more lessons and encourage more repeat business. Already the staff has been working on a Junior Golf Academy as well as a junior golf tournament to be held in late October. We will do a series of tournaments and allow kids to collect Order of Merit points and then we'll display the names on a display board. After about 8 tournaments we'll present trophies," said Moskal. The indoor hitting bay is set up with JC Video systems incorporating Camtasia software.


MARKETING, SPECIAL EVENTS AND ADVERTISING
For now, Jane Keenan, Marketing Manager has a long commute, as she's still based in the UK. That might change soon as she moves over to take up the reins. In coordinating the rollout, Keenan is trying to sell the TopGolf experience to both individuals and companies. She's brought on board Erika Miller as the Director of Sales & Special Events and is getting the word out. "We've had some good local press and we've explored a variety of marketing opportunities," she added. TopGolf is trying to target the leisure market and not just traditional golfers. Company officials estimate that 50% of the people at the facility are new golfers who have never been to a course let alone a golf range. They've been advertising in the DC metro; and will soon be doing D.C. buses. They also are using local newspaper advertising to get the name out. The General Manager for the facility is Kevin Vouglitois.


ANOTHER TOPGOLF GRAND OPENING IN THAILAND
World Golf Systems Group PLC, the inventors of TopGolf, launched their first overseas site in Bangkok, Thailand. In partnership with their Licensee, Modern Dynamic Golf, an existing 60 Bay, three-tier facility at Piyarom in Bangkok has been transformed into a state of the art TopGolf facility. Numerous sponsorship deals have been agreed in launching TopGolf in Thailand, including Chang beer, True Mobile and Toyota who have their latest 4x4 utility vehicle on offer for a hole in one prize. The Grand Opening was a lavish affair incorporating a charity event with over 1,000 invited guests, including the Thailand Minister of Sport and Tourism, Somsak Thepsuthin and the Deputy Head of The British Embassy, Andy Pearce.


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