Topgolf founding twins bring AI to the pool table with launch of new venture Poolhouse
Steve and Dave Joliffe are an overlooked British success story.
The twins launched Topgolf in Watford in the 1990s, growing it into a worldwide business before selling it to golf brand Callaway in 2020 for $2billion (£1.5billion).
The twins, who eschew most media and are rarely pictured, were among the first to marry sport and hospitality in a 'competitive socialising' venue, now ubiquitous in towns and cities globally.
In the US, off-course golf activity now outranks on-course activity in the US, of which Topgolf has an 85 per cent market share.
They have gone on to replicate Topgolf's success with mini-golf operator Puttshack.
Now, they're using the same formula to bring the centuries-old game of pool into the 2020s, with the launch of Poolhouse.
Joliffes are a 'two for one deal'
Andrew O'Brien, chief executive of their new venture Poolhouse, calls the Joliffe twins geniuses.
The former investment banker turned investor met the twins at the launch of F1 Arcade - a simulation racing experience - where he sits on the board.
While the Joliffes differ in their specialisms - one in engineering and the other in business and tech - O'Brien says they're a 'two for one deal in terms of processing power'.
One of their guiding principles for their businesses has been targeting non-players.
They've effectively taken a Nokia 3210 and created an iPhone.
'For Topgolf, for ladies to go in dresses and high heels on a Friday evening, having never swung a golf club and have a brilliant time… they delivered that,' says O'Brien.
'Similarly, they identified a bit of a tired sport, which in our view needed a refresh.
'What can we do to create an environment that is welcoming and draws people in to want to come and play again and again? That's what they did with Topgolf and Puttshack.'
Pool's longevity as a game and the growing number of players in China make it ripe for innovation.
'This one, in my view, is probably [the Joliffes'] best concept yet,' says O'Brien. 'They've effectively taken a Nokia 3210 and created an iPhone.'
What is Poolhouse?
As with Topgolf and Puttshack, the twins are appealing to non-players and will use AI to work out a player's ability before creating an 'equalising mechanism'.
'One of the key challenges I think that snooker and pool and billiard games face is that if you've got people with different skill sets, it's almost impossible to try and utilise those skill sets so that it's fun for both players,' says O'Brien.
At Poolhouse, players will still have their usual balls and cues, but projectors in the ceiling will beam down on the pool table, a canvas for plenty of advertising opportunities, too.
The team has already built five games, which are in a trial period, with more to come. They've brought in former pool and snooker champions to test how they might work.
So far, so good, according to O'Brien.
'Some of the ex-professionals would pop one shot and then mindlessly walk around the table to pop the next shot, where they're perfectly positioned.
'But the tech will block them, or take the ball out of play so they start having to look at more difficult shots and other options.'
It doesn't seem much fun for the better player who'll face hazards while the worst player gets an easy run. O'Brien insists the tech is well-equipped to deal with this.
'We don't want a good player to say they were much better but still lost. That doesn't feel fair, and we haven't seen one instance of that [during the demos]. I suppose it's quite like golf handicaps.'
To have the support of ex-professionals suggests there might not be as much backlash from 'traditionalists' as you might expect.
O'Brien says the goal was never to target professionals, but was 'delighted to learn [they] were willing to adopt something that's a little bit different.'
'[The Joliffes have] preserved the legacy of the sport, it's definitely paying homage to what the sport is. They haven't gutted the sport and created something that traditionalists would be embarrassed to be associated with.'
'London is Silicon Valley for competitive socialising'
The launch of Poolhouse forms part of hospitality's wider move to what it calls 'competitive socialising'.
Unlike traditional hospitality, where food and drinks are central, the activity is the appeal in venues like Puttshack, F1 arcade and Flight Club.
It means their appeal extends beyond after-work drinks, instead tapping into families, friends as well as corporates.
The number of competitive socialising venues has soared to nearly 600, according to research by Savills.
O'Brien, who is evangelical about the sector, says the UK is leading the way in the sector: 'London is Silicon Valley for competitive socialising.'
However, hospitality businesses still struggle with rising costs and there have been plenty of high-profile casualties as consumers stick to eating in.
The added activity is one way to increase revenue, but is now the best time to launch another venue?
'The sector has demonstrated a robustness in the face of these headwinds… It really boils down to delivery of service,' says O'Brien.
'There's evidence of a flight to premium. We don't call ourselves luxury poolhouse, it isn't a luxury venue. We'd like to describe ourselves as an affordable luxury venue. It feels special to go but it's a place that you can keep going and keep visiting again.'
Poolhouse is likely to price itself in line with its competitors, between £12.50 and £15 per hour.
Back-of-house gets makeover too
Poolhouse's 'seamless, blended but unique menu' (aka tapas) will be led by an unnamed chef from Gordon Ramsay's group and is tapping into technology where it can.
'We want to make sure there's people on hand to help… but there are a lot of efficiencies that can be driven in the back end to make sure that we're managing costs.,' says O'Brien.
Poolhouse will use an automated booking system with a customer service line that 'effectively feels like you're speaking with a human, but its AI.'
'Some of the biggest restaurant chains in the UK, some of the most premium chains, are already using it but you just don't realise it because it's just so good. There's been a huge leap forward.'
Back of house will also get an AI makeover.
'We'll be able to understand certain food inputs - cheese, cream, whatever it is - and if there's been a change in terms of the pricing in the market, we can look at dynamically adjusting the menu.'
Poolhouse - with its Vintage Vegas meets dive bar decor - will open in Liverpool Street, London next January.
After a £25million funding round led by dmg media, Poolhouse has grand ambitions to take on the US, Middle East and Australia, and deploy its tech across bars, pubs, casinos and hotels.
'Our mission is to upgrade every single pool table to a Poolhouse table, because it just makes the experience that much better.'
O'Brien is convinced that like Topgolf, Puttshack will soon reach unicorn status - when a company is valued at $1billion - and Poolhouse will too.
But it might take a while for people to give up their beloved pool tables at the back of their local, where you can typically play for a quid a game.
Poolhouse says it's all about giving it a 'makeover', but it might take some time to convince traditionalists who argue it's best left alone.
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