After the Gold Rush: How Pickleball Facilities Can Win with Community

The pickleball industry has reached a critical juncture, where the initial gold rush of building new facilities has given way to a more mature market. As supply catches up with demand, the focus is shifting from who can build the most courts to who can operate them best, with community being the key differentiator.

In this new landscape, pickleball facilities can win by focusing on building a strong community, rather than just expanding their footprint. According to industry experts, there are two main playbooks for consolidation: the rollup and the network. The rollup involves buying up existing facilities at a discount, centralizing operations, and wringing out inefficiencies, whereas the network approach involves partnering with existing facilities to create a network of clubs that share resources and expertise while maintaining their local character.

Two Playbooks for Consolidation

The rollup playbook is a financial engineering approach that involves:

1. Buying clubs below replacement cost: purchasing existing facilities at a discount to their replacement value, often from owners who are looking to exit the business.
2. Renegotiating leases: renegotiating the terms of the leases to reduce costs and improve profitability.
3. Installing a common brand and playbook: implementing a standardized brand and operating model across all facilities to reduce inefficiencies and improve consistency.
4. Centralizing purchasing, software, and marketing: centralizing these functions to reduce costs and improve efficiency.
5. Wringing out duplicated overhead: eliminating redundant costs and improving profitability.

In contrast, the network playbook involves:

1. Partnering with existing facilities: partnering with existing facilities to create a network of clubs that share resources and expertise.
2. Sharing resources and systems: sharing resources, such as programming and marketing, to improve efficiency and reduce costs.
3. Supporting local character: supporting the local character and personality of each facility, rather than imposing a standardized brand and operating model.
4. Creating a community-focused approach: creating a community-focused approach that prioritizes building strong relationships with members and creating a sense of belonging.

Industry experts, such as Rich Green, co-founder of SPF, and Rishi Bengani, who built Casa Pickle, emphasize the importance of community in creating a successful pickleball facility. As Green notes, "You can build a beautiful facility pretty quickly. Building a community is the part that takes years." Bengani adds, "The next phase will be about operators who can create real experiences, build strong communities, and run sustainable businesses."

Technology is also playing a critical role in the consolidation of the pickleball industry, enabling operators to create more efficient and sustainable businesses. For example, 24 Hour Pickle is using technology to fold three former Pickle Point USA locations into its footprint, creating a dense network of clubs that can operate 24/7. Similarly, Gotham Pickleball has built one of the first autonomous clubs in the country, using technology to shift its business model and improve efficiency.

In conclusion, the pickleball industry is at a critical juncture, where the focus is shifting from building new facilities to operating them effectively. By prioritizing community and using technology to improve efficiency, pickleball facilities can create a successful and sustainable business model that meets the needs of their members and sets them apart from the competition.