Despite heavy competition from home consoles and mobile gaming systems, the market for combined restaurant/entertainment venues has continued to thrive in recent years. According to a report by IBISWorld, the arcade, food and entertainment complexes industry has experienced consistent growth over the past five years, accounting for approximately $2 billion in domestic revenue in 2014. Latitude 360, Inc. (OTCQB: LATX), through its chain of award-winning upscale dining and entertainment locations, is capitalizing on this industry growth while laying the groundwork for aggressive national expansion.
Latitude’s current portfolio includes three locations in strong markets across the United States – including Indianapolis, Indiana; Jacksonville, FL; and Pittsburgh, Pennsylvania. In the first quarter of 2015, the company leveraged the marketability of these locations to record a 19 percent year-over-year increase in gross sales. In particular, Latitude had tremendous success in selling specialized membership cards, surpassing 5,000 ‘360x Club’ memberships since the start of the program in the summer of 2014.
In June, Latitude cleared the way for the continued growth of its membership program by teaming with leading consumer management platform Clutch to upgrade the club’s backbone technology. These upgrades are expected to allow the company to more effectively encourage customer loyalty, in addition to serving as an immediate source of added revenue. Industry leaders, including Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY), utilize similar programs to promote repeat visits.
“We’re excited to partner with Clutch to integrate its advanced technology and provide streamlined, cross-channel experiences that deliver valuable entertainment benefits and rewards to our members,” Brent W. Brown, chief executive officer of Latitude, stated in a news release. “Clutch… [has] taken our concept to the next level by providing our guests with exceptional value while driving revenue and trips to our venue.”
The company’s current membership program is split into three unique tiers providing varying levels of benefits based on membership fees. The free ‘VIP’ loyalty program, also known as the ‘Green Membership’, offers redeemable points for purchases made in any of Latitude’s locations. However, benefits are greatly increased for members of the company’s fee-based ‘360x Club’. These members, which can choose between ‘Blue Membership’ and ‘Black Membership’ programs, enjoy access to monthly benefits worth $150 and $300, respectively.
Through the continued development and refinement of its membership club, Latitude is taking significant strides toward enhancing customer loyalty and increasing its market share. As the company continues to expand its network of restaurant/entertainment venues, it is in a strong strategic position to capitalize on the favorable conditions of the restaurant industry while promoting sustainable returns moving forward.
For more information, visit www.latitude360.com
