The entertainment restaurant sector has faced competitive years after the devastating Covid-19 pandemic in 2020 subsided.
Several establishments opened new locations and continue to expand as they recover from the effects of the pandemic. Some, however, have struggled in the aftermath of the pandemic and have closed locations and filed for Chapter 11 bankruptcy.
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The larger chains, such as Round 1 Bowling & Arcade, Dave & Buster’s Entertainment Inc., and Chuck E. Cheese, have been opening new locations, refurbishing existing ones, and are looking to the future to open even more stores.
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Round 1 Bowling & Arcade is one of the expanding chains, which operates 100 locations in Japan, 54 in the U.S. and four in China, according to Shopcore Properties. The arcade and restaurant chain looks to open 150 more locations over the next five years, the restaurant chain’s website said.
Chuck E. Cheese makes a comeback
Huge family entertainment restaurant chain Chuck E. Cheese, with nearly 600 locations in 45 U.S. states and 17 foreign countries, is making a comeback after suffering from distress. The chain’s parent CEC Entertainment filed for bankruptcy protection in June 2020 after shutting down operations when the Covid-19 pandemic swept through the nation in March 2020.
Chuck E. Cheese, which opened in 1977, restructured its debt, spent $350 million remodeling its locations, updated its menu, and increased its revenue from $912 million in 2019 to $1.2 billion in 2023, according to CNBC.
Arcade, restaurant, and bar chain Dave & Busters Entertainment Inc., which opened in 1982 and has over 170 locations, is another expanding chain as it finished its fiscal year ending Feb. 4, 2025, opening 14 new locations during the year and remodeling 44 locations since 2023, but it reported a 9.4% decrease in comparable store sales compared to the previous year.
Velocity Esports filed for Chapter 11 bankruptcy.
Velocity Esports
Velocity Esports files for bankruptcy
Finally, popular arcade restaurant and bar chain Velocity Esports Inc. and four affiliates filed for Chapter 11 bankruptcy protection to reorganize its business after closing a location at the Woodfield Mall in Schaumburg, Ill.
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The restaurant, bar, and entertainment chain still operates its locations at Town Square Mall in Las Vegas on South Las Vegas Boulevard and another in Newport, Ky., near Cincinnati, but another planned location in Orlando, Fla., has not opened, according to an employee who answered a phone call in Las Vegas.
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The debtor’s bankruptcy attorney did not immediately reply to a request for comment.
Velocity Esports listed $1 million to $10 million in assets and liabilities in its petition filed in the U.S. Bankruptcy Court for the District of Nevada on May 7. The debtor asserted in the petition that no funds would be available to pay unsecured creditors after paying administrative expenses.
The Las Vegas-based restaurant and entertainment chain, whose motto is “Next Level Gaming, Next Level Fun,” offers a 16-lane, full-size bowling center at the Newport location, an 8-lane bowling center in Las Vegas, arcade games, esports lounges, social gaming lounges, elevated casual dining, and craft beverages.
Velocity Esports markets its facilities for corporate events, team building events, bowling parties, esports parties, holiday parties, kids’ and adults’ birthdays, youth events, social events, and venue buyouts.
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