Source: FSRMagazine
The chain is undergoing a strategic overhaul after a failed transformation plan.
On Tuesday, Dave & Buster’s announced KFC veteran Tarun Lal as its new CEO.
Lal comes with more than 25 years of experience at Yum! Brands, most recently serving as president of KFC U.S. Before that, he served as KFC Global COO and managing director for KFC Middle East, Turkey, Africa, India, and Pakistan.
“I am truly honored to be joining this incredibly talented team and to lead the Company into its next chapter,” Lal said in a statement. “Dave & Buster’s and Main Event are iconic, highly differentiated brands with exceptionally large and loyal customer bases, outstanding unit level and new unit economics and huge potential for growth. I have been deeply impressed with what I have seen so far and sincerely look forward to working closely with our team and the Board to deepen our connection with our guests and team members and drive immediate and long-term growth and value for all stakeholders.”
Lal will receive an annual base salary of $800,000 and is eligible for an annual cash bonus equal to 100 percent of his base salary, prorated for fiscal 2025. He will also participate in the company’s 2025 Omnibus Incentive Plan, with a target equity award equal to 125 percent of his salary.
William Blair analyst Sharon Zackfia described Lal as an “interesting choice to lead Dave & Buster’s” given his extensive experience at Yum! but no direct experience in casual dining or entertainment. She added that Lal should help with the chain’s international efforts, including the first global licensed location opening in India and eight to 10 additional sites planned for later this year.
The new CEO will lead a brand undergoing a “back to basics” strategy after a previously implemented transformation plan didn’t have the intended effect.
Interim CEO and chairman Kevin Sheehan, who stepped in after the resignation of CEO Chris Morris in December 2024, was candid in his assessment, saying the business is currently operating at just 55 percent of its potential. He pointed to a number of “significant and ill-advised” decisions made by previous management—including the removal of nearly all TV advertising, overlapping and conflicting promotions, unpopular changes to the menu, and costly remodel strategies that lacked proper testing or ROI. These moves, Sheehan said, overwhelmed both customers and operators and eroded the brand’s momentum.
The company reported a 9.4 percent and 8.3 percent drop in same-store sales in the fourth and first quarter, respectively, along with decreases in total revenue, net income, and adjusted EBITDA in both quarters.
Sheehan expects Lal to have “an immediate impact” on the Dave & Buster’s and Main Event business.
“After a careful and comprehensive search, the Board is thrilled to announce Tarun as our next CEO,” Sheehan said in a statement. “Tarun is a talented leader and seasoned operator with a highly successful track record of growing and improving businesses and brands in the U.S and around the world.”
Dave & Buster’s has 175 venues in 43 states, Puerto Rico, and Canada. It also operates 61 Main Event units in 22 states.
