The indoor golf simulator market is nearing $2 billion and is expected to surpass $3 billion by 2030.
Maybe you’re able to put one in your own home (good for you) but more likely you are heading to indoor golf simulator clubs.
They’ve exploded over the past few years with major players like X-Golf, Five Iron and Back Nine leading the way.
Was this just a boom because of new tech or is this model built for the long haul?
Let’s compare the big guys to each other and to local spots and we’ll try to answer the bigger questions about where this business is heading.
X-Golf
They’ve measured out their “sales per simulator” at $113K so, yes, the more the merrier, and adding more sims is where they’re able to grow margins.
Maybe a little more by the book, X-Golf feels like the millennial’s playground. Their website reflects that vibe, too. Tried and true, gets the job done. Not as bent on membership but rather on league play and standard tee-time bookings.
The startup costs seem high for a business that will only revenue $500-600K. How much of that is the owner/operator actually going to see? I can’t imagine much more than $100K after expenses, royalty payouts, etc. But what do I know?
Five Iron Golf
Now this still seems astronomical for a buildout. These stats are mainly from Entrepreneur.com, and the range is wild, but that’s what we’ve got.
But for a business that can do $2M, $3M, even $4M? Makes a little more sense and seems like a much more attractive pursuit for an entrepreneur.
Seems like they’re really nailing the events, member programs and social club aspect relative to a place like X-Golf.
Back Nine Golf
There’s a place for this model though, right? Super low overhead once the simulators are in, minimal to no staffing, 24/7 access (membership needed) and remote technical support.
It can be run very passively. That’s their pitch.
I personally don’t love the model, as it feels like they’re doing the bare minimum—but they don’t promise to be this community-building, one-stop golf/entertainment shop, so who am I to judge?
They promise high-quality tech, 24/7 access, no-frills golf, which is exactly what some people (franchise owners and golfers alike) want. Can’t knock ‘em!
My issue as an entrepreneur (potential franchisee) would be the average revenue in 2024 being shy of 200K—while I know this is a young franchise and that’s not going to be the ceiling, I would get excited by other opportunities before this one.
But, hey, ~100 more locations sold means they’re convincing more than enough people it’s worth it.
So cheers to them!
Local indoor simulator clubs
I’m a Nashville local and I interviewed the owner/operator of The Hideout, an indoor golf club in town.
Errol Helling has been in the industry for 15+ years, was an early TrackMan employee, and has now created a unique space for Nashville golfers.
His model, while not too different from X-Golf and Five Iron, emphasizes the community aspect of the club. It starts with indoor golf, but then it becomes something a bit more than that. The club puts on golf trips, the members go play out in the city—the club becomes a major part of a member’s golf journey.
He brought up Carnoustie Golf Links in Scotland, where the clubhouse was down the road from the actual course. The clubhouse became a place to eat, drink and commune together as members of a club. It was from there they would go out and play golf.
The Hideout isn’t cozied up to an 18-hole outdoor course but it’s a place where you can practice, play on the simulators, compete and ultimately find a place to belong in the city’s golf landscape.
The cost of membership is a $2,500 initiation fee plus $299 per month.
Errol even tries to steer clear of the term indoor golf club—what he’s building goes far beyond the indoors, beyond the walls of his club and the limits of the simulator.
Here’s what he had to say about the future and where some indoor clubs are getting it wrong:
“Indoor golf without engagement (tournaments, league nights, playing outside with your members) will run its course with most people. If you’re not doing more than just (hitting balls), you will not have long-term members. When the summer comes, they will leave.”
Is indoor golf good for golfers?
For improvement: Nothing beats high-quality data and efficient reps.
For community: Leagues and regulars create friendships and playing partners fast.
For consistency: No weather cancellations. No five-hour commitments.
You trade the sunshine and the real elements for this stuff, sure.
Even the guys who own an indoor golf club will tell you indoor golf is not as good. But it adds something the outdoor game can’t always offer: accessibility, affordable membership and a place to practice life-friendly golf.
So, yes, I’d say it’s good for golfers. As good as outdoor golf? I’m not sure about that, but it’s good for golfers.
Which indoor simulator club is the best? That depends what you are going to experience.
Is the indoor simulator business here to stay?
Yes, and for reasons beyond just weather.
Indoor golf solves real problems: daylight, scheduling, convenience, data, group-friendly fun, time.
The tech will keep getting better, and I really can’t stress the time enough. Nine holes of golf often leaves you wanting more golf, and 18 holes may ask for six hours of your day, commute dependent.
It seems X-Golf, Five Iron, Back Nine and these local clubs have found their success from elevating the member experience. Back Nine Golf does so without the full member experience and is growing faster than any of them … but they’re also the youngest.
It could be that their passive ownership model proves fragile in the long run. Only time will tell.
Back Nine Golf might be the exception but we know the demand is high for indoor golf, and it can be sustainable if these clubs commit to that member experience—leagues, perks, golf trips, local outdoor golf, etc.
Bullish.
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