The concept is capitalizing on the growth of sports viewership driven by streaming services and increased interest in leagues like the WNBA
Tom’s Watch Bar turned 10 years old in 2024 and the concept seems to be having a bit of a coming-of-age moment accordingly. Created by Tom Ryan – one of Smashburger’s co-founders – and Rick Schaden in Los Angeles, the sports-centric concept started as Tom’s Urban and rebranded to Tom’s Watch Bar in 2019 with an objective of evolving into a “mega-entertainment venue.”
Since then, Tom’s has grown to 13 locations, generating $7 million in average unit volumes and 26%-plus restaurant margins. In 2024, Tom’s revenue grew by more than 25% year-over-year, while its profitability expanded by 33%. During the recent ICR Conference in Orlando, Fla., executives shared that they believe Tom’s Watch Bar has the potential to get to at least 600 locations, including global markets.
There are plenty of reasons for such optimism. In addition to stout unit economics, sports viewing is on a tear and Tom’s has hosted an estimated 2.5 million fans.
More opportunity remains – PwC estimates that the number of U.S. viewers who stream a sports event at least once a month will rise to more than 90 million, from 57 million in 2021. Accessibility is pushing that number higher – more streaming services equate to more occasions, giving sports that haven’t traditionally been televised – like pickleball, volleyball, and Formula 1 racing – a potential platform. The WNBA experienced a 155% increase in viewership year-over-year in 2023, which also helped.
“I feel like we should give Caitlin Clark some equity,” said co-CEO Brooks Schaden, referring to the fan-favorite player for the WNBA's Indiana Fever. “The nice thing about sports is it’s recurring and there is tremendous passion. There is also a tremendous amount of tailwind within sports with sports betting, fantasy leagues, the way people engage and watch sports.”
Ryan said it’s this changing market that has more clearly defined what Tom’s really is.
“We’re capitalizing on a trend of people using sports as part of their entertainment,” he said.
Tom’s Watch Bar’s demographics are close to 50/50 men and women who skew slightly older and with a higher income than what you’d typically find at your college campus sports bar. As such, Schaden and co-CEO Shannon McNiel said there is an elevated experience, including on the menu. Tom’s sells traditional sports bar food, like wings and burgers, but also offers items like the Prime Rib French Dip and the Ahi Tuna Tower. The chain also “sells a lot of beer and craft cocktails,” McNiel said, while also offering an “approachable” wine list. Alcohol makes up at least 50% of the sales mix.
“The market is looking for something different than a traditional sports bar, which is food and drink and service,” Ryan said.
That service model is Tom’s true differentiator, according to McNiel.
“There’s a beverage in your hand the second you walk in,” he said. “There are tablets in hand to make sure when you order your beverage, it’s getting to the table before the server leaves the table. The kitchen is designed to turn out food in about eight minutes regardless of volume, so you don’t have to get up and miss anything. I think good, old-fashioned (operations) has been lost in the industry. We are bringing that back.”
McNiel said Tom’s invites people to come work for the company and develops an “extreme ownership mentality” at every level to ensure a deep bench and to maintain that service focus. There are no general managers, but rather operating partners. It’s no coincidence that McNiel previously served as a market partner at Texas Roadhouse, which has perfected the managing partner model.
“Everybody’s part owner so they have an interest in top- and bottom-line incentives,” he said. “They have skin in the game, and it helps align all the behaviors at every single location.”
Beyond the food and service, there’s the experience in general – the 150-plus televisions “wallpapering” each Tom’s location for 360-degree viewing.
“It’s the next best thing to being at the 50-yard line,” McNiel said.
“Every seat is the best seat in the house, inside or out, and we can promise all the sports all the time,” Ryan added. “People are looking for an elevated experience around watching sports instead of just going someplace where the TV is on.”
Because Tom’s is focused on sports viewership, the company’s marketing strategy zooms in on fans near each venue, as well as partnerships with teams and organizations like Dana White’s Ultimate Fighting Championship. If the Orlando Magic has an away game, for example, the nearby Tom’s hosts watch parties with an occasional cameo appearance by the team’s mascot.
“We have a database of about 400,000 people because we leverage our partners’ databases to reach their fan base and then put on a tremendous watch party when their fans don’t have tickets to the game,” McNiel said.
Those watch parties often include DJs, giveaways, and light shows during key plays.
“There’s no better place to watch a game,” Ryan said. “Some would even tell you it’s better than going to the game because you can sit around and talk to your friends.”
Tom’s Watch Bar opened two locations in 2024 and plans to open up to eight in 2025. Its white space opportunities include stadiums and arenas, tourist hubs such as Las Vegas, convention centers, casinos, entertainment districts, large hotels, and international markets.
“We’ve got the interest and the people to do it, and we’ll grow at a pace that continues to support great service and great food,” McNiel said. “The four-wall execution to us is very important.”
Contact Alicia Kelso at [email protected]
