Take that important first step carefully.  Getting started in the right direction will have tremendous benefits as you move along toward fulfilling your dreams.  Far too many people have fallen by the wayside because of shortsighted decisions, which brought about disastrous results.

Be realistic in making initial decisions.  Each step you take will have a strong impact on the progress you may realize, or the setbacks that can ultimately derail your dreams.  It is easier to expand a project or facility than it is to reduce it.  While it is important to be able to adequately serve the market you develop, it may become a financial disaster if you create too large a project.

Family Entertainment centers (FECs) may not be the appropriate development for all markets, or all operators.  It is important that a person seeking to get started in the industry do so wisely.   The requirements and challenges vary widely from most retail and service industries.  The demographics vary as do the wide variety of concepts and attractions.

Not all consultants, vendors, bankers, and other investors are fully aware of the impacts that wrong decisions can have on a given venture.  The industry contains a few consultants that apparently “have never met a project they didn’t like,” vendors that are more concerned with making sales than in making certain their customers have a project that can survive in the given markets they seek to be located in and investors that seek to tie up control of the projects they invest in, to the point where the person seeking to develop the project are unable to make decisions critical to their ultimate success.

Common Mistakes:

A common mistake many individuals make is using general information rather than demographic data specific to their proposed site location.  This includes deciding to prepare their own feasibility study based on data developed by local chambers of commerce, economic development boards, etc. which develop demographics based on generalities and different industries assembled over a general marketing area and may be developed with no specific targeting of the market that an FEC would appeal to.

Saving pennies and losing dollars can well be the result when people without industry experience seek to develop business plans or feasibility studies.  It is very important that entrepreneurs seeking to obtain financing or partners have a detailed knowledge of what is included in their business plan.   If you appear before a loan committee or meet with private investors to present your project, you had better know the how the information was developed, where your data came from, why you have made the projections for success that you have presented and why the sources of data and the decisions made have a basis in reality.

The people with industry expertise that you consult with can bring their specific knowledge and industry experience to bear on the evaluation and preparation of your projected results.  This can result in establishing a solid basis for the results you project.  Collaborating with people not intimately familiar with the industry may result in inaccurate evaluation of both concept and results that my inaccurately project ultimate success or failure to your being rejected, or even worse failure if approved..

A target market of 20,000 people in your immediate community is far different than one with 200,000 or more.   The proposed attractions for a small market must be very carefully selected to assure that they can generate sufficient business to make the facility successful.  With the smaller potential number of guests it becomes very important that the attractions selected have as broad appeal as possible.  This can be accomplished in several ways:

• Select an attraction that appeals to a broad age demographic and has a high through-put in terms of guests per hour.  Examples would be go-karts and miniature golf.
• Include a game room with redemption games that appeal to family play.  Create a birthday          party package.  Also seek to expand the program to appeal to other  groups.
• Add an attraction that generates a strong impulse, has a low cost and requires little space, such as WaterWars.
• Establish a group picnic area and add a sand volleyball court.
• Include a shaded sand box and a slide to expand the activities for young guests.

Most of the attractions added for younger guests may not generate a lot of revenue but can extend the relative time families will spend at your facility.  “The 16 year old may determine where the family goes for its entertainment, but the three year old determines when the family leaves.”  Keeping younger guests happy is good for your bottom line.

With the reality of the above, this writer cannot understand why so few facilities actually address this issue. 

There are many attractions that can serve this segment of your guest profile with relatively inexpensive attractions that have small footprints and relatively light staffing demands.

A representative element that can be added at a very low cost is a kiddie track that uses inexpensive battery powered cars such as PowerWheels cars sold at a number of retail outlets.  These cars are very light and can be contained by Masonite or other low cost barrier material and operate on a track constructed of Portland Cement Concrete or bituminous concrete (asphalt or blacktop).  They can be short (100 feet or  less) and only have to be about 8 feet wide.

There are dozens of other attractions that can also be added at low costs that help adding to the appeal.   Each attraction you add should be evaluated in terms of its entertainment value, durability, appropriateness and safety.

Well Thought Out Business Plan:

Development of a sound business plan, based on the specific economic and demographic realities of the local market is critical to gaining funding and agency approvals required.   Assuming this is done, the prospects for ultimate success increase greatly, assuming resulting facility is “right sized” in terms of investment, mix of attractions, marketing program and staffing.

The challenge each operator of a family entertainment center faces, be it small or large,  is the challenge of maximizing attendance.  Selecting the right target market is always a challenge, be it for a children’s, family or adult facility.  Properly addressing a single age group is always easier because there is no need to balance attractions that appeal to different age groups in a format that doesn’t alienate everyone. 

The challenge becomes greater in serving a multi-age demographic.  It requires creating the right mix of attractions to maximize attendance and guest satisfaction for several target groups.  In most instances this involves developing a mix of age oriented attractions that can appeal to the broadest target market and thus generate maximum revenues.

It is important to generate both maximum attendance and maximum attraction thru-put during peak hours of attendance.  The ability to manage more guests per attraction per hour increases the revenues that can be generated.  It is important to select attractions that draw the maximum number of guests to the FEC, as well as having a balance of attractions that provide the capability to maximize the number of guests that can play or utilize the attractions during peak hours.  This will result in the ability to increase per capita spending.  The combination of attraction capacity will, over the long run, maximize attendance and will result in a greater potential for success.

Maximizing attendance and per capita spending requires not only the selection of the correct mix of attractions, but also strategic placement of attractions within the facility. Proper placement will increase impulse play and increase revenues. This is especially true when the target market includes attracting teenagers and families with younger children.

Project Team:

We can’t overstate the importance establishing a qualified and cohesive project team to develop a feasible, comprehensive, business plan.  The team should consist of a committed owner/developer, design consultant, financial and legal advisors and a proposed management and operations specialists. That establishes concept, feasibility.

Establish a Relationship with Community Leaders:

Meeting with people within your community that deal with the public can serve not only to the community aware that you intend to operate a safe and family friendly environment, but also enable to get community input into possible unhealthy social conditions that you should be aware of in order to create a favorable environment for guests.

Expand Marketing:

Develop a strong Group Marketing Program.   Groups can include local businesses, schools, churches, fraternal organizations, sports teams, assisted living and retirement communities,

Utilize the Services of Professionals:

Employ an experienced design consultant with the experience and knowledge to plan the placement of indoor attractions to minimize interaction between toddlers and other younger guests and teenagers. When possible, group attractions such as laser tag, mini-lane bowling, food service, teenage arcade elements such as dance and guitar units, basketball units, racing simulators away from the redemption games, birthday party rooms, soft play and toddler areas.

Professional Consultants often have specific suggestions for matching different age groups, social and ethnic groups, that enhance your facility environment through their past experiences and industry contacts.

Peter is a Licensed Professional Engineer in the States of Illinois and Michigan and is President of Entertainment Concepts, Inc. (formerly Peter F. Olesen and Associates, Inc.). He founded the firm in 1984 and expanded its range of consulting services over the years to now provide a wide range of consulting services. Services range from preliminary site evaluations, feasibility studies, business plan assistance, concept development, master planning, design and construction engineering services that apply to new facilities as well as renovation or expansion of existing facilities.  Projects include the design of both outdoor and indoor, family entertainment centers, amusement parks, theme parks, stand-alone go-kart tracks and miniature golf courses, bumper boat ponds and related attractions.  The firm has been and continues to be at the forefront of go-kart, miniature golf course and bumper boat pond design, introducing many innovations in safety, geometrics, design and construction methods now widely emulated throughout the industry. 

To date the firm has completed more than 670 projects spanning 46 states, Angola, Brunei, Canada (Alberta, British Columbia, Ontario, Quebec and Saskatchewan), Cuba (Guantanamo Bay), Kazakhstan, Mexico, Puerto Rico, Saudi Arabia and Vietnam.  Since 1987 Mr. Olesen has exhibited at more than 100 industry trade shows.  He is a member of the faculty of Foundations Entertainment University (49 seminar presentations over 17 years), presented more than 100 seminar presentations at the International Association of Amusement Parks and Attractions, FunExpo, Kart Expo and Leisure Expo, as well presenting go-kart safety seminars for the State of Ohio.  He has, and continues to author articles for industry magazines and internet newsletters.  For additional information on projects and services offered please refer to our web page www.fecdesigners.com or contact us at 847-561-7013 or www.peteolesen @yahoo.com.

Copyright: Entertainment Concepts, Inc. 2024