Average Arcade Revenue and Budget
In this blog post, you'll discover the cost and ROI of installing or upgrading an arcade at your family entertainment center. Read on to learn more!
Learn how adding arcades to your bowling alley increases profit, reaches new audiences, & enhances customer experiences. We’ll also break down the steps to installing arcades for success without breaking the bank so that you hit the ground running!
Bowling alleys have a rich history in American entertainment, with centers dating as far back as the 1800s. In recent years, they’ve evolved from simple places to knock down pins to multifaceted entertainment hubs for people of all ages to enjoy. One trending addition to bowling alleys is the incorporation of arcades, increasing profit and enjoyment of a wider range of audiences.
With a slew of classic games that keep players coming back for more, new and more innovative games to keep players excited, the integration of arcades provides many additional ways to capitalize on more sources of revenue. This integration not only taps extra sources of income but also enhances the overall customer experience. Arcades give visitors more to do while waiting their bowling turn, and give guests more reason to stay after their game of bowling has concluded.
The additional sights, sounds, and sources of fun are appealing to many types of audiences, for many different reasons, with older audiences having nostalgic memories of playing at arcades in their youth. Needless to say, the addition of arcades brings with it many opportunities for owners to consider.
So, without further ado, let's explore 3 ways you can maximize fun and revenue by integrating arcades into your bowling alley!
3 Benefits of Integrating Arcades
1. Extra Sources of Income
Adding an arcade to your bowling alley opens you up to many additional sources of income, from audiences of all ages (more on that later). You can earn income through a variety of gameplay options, such as pay-per-play, timed games, and redemption games, wherein the player is rewarded for their performance (prizes, tickets, etc.). Improving technology also is giving rise to better virtual reality gameplay which further enhances the gaming experience, and offers great investment potential. Having this variety will keep your customer’s experience feeling fresh and dynamic, giving them more reason to make return visits, in turn increasing your profitability in the long run.
Arcades also provide a level of stickiness to your bowling alley, generating more revenue. These games give customers more to do during long waiting periods between bowling games; it’s easy to imagine people playing a game or two of Pac Man while waiting for their bowling turn. This increase in activities also gives customers a reason to stay long after their game of bowling has concluded. Given the additional purpose of extending their stays, guests are more likely to purchase food and drinks, further increasing your revenue and maximizing ROI.
The arrangement of your games also plays a role in increasing profits. For example, let’s say you’ve decided to include a Dance Dance Revolution game with your arcade. This game doubles as a medium for exercise, which naturally would stir up an appetite in its players. Therefore, it would be tactful to position this game in view of your dining area for players to replenish their lost calories. You could also position games with shorter play times closer to the bowling alley for people waiting for their bowling turn, giving them more to do instead of sitting idle. Taking stock of your facility’s spatial capacity and making the best tactical use of positioning your games is a great way to maximize your space for profit.
2. Appeal to a Wider AudienceArcades aren't just for kids! They offer something for everyone, appealing to parents introducing these games to their kids for the first time, young couples below drinking age, seasoned gamers, and kids with nothing to do after school as well as on weekends. This deepens the versatility of your bowling alley as an entertainment destination.
Although the rise in online gaming competes with the traditional arcade experience, arcades offer additional opportunities to reach audiences in the gaming industry. For example, staying up to date on the latest virtual reality games is a great way to continually have something new to offer players, while competitive redemption games can add an in-person social aspect often missing from the gaming experience. Let’s dig deeper into how each type of gaming has the potential to appeal to different demographics:
When you invest in an arcade, you’re investing in multiple ways to reach wider audiences. Know your goals, research the audiences you want to appeal to and choose your arcade games wisely.
The sound of the bowling balls striking pins interlaced with the chimes of classic arcade games creates an immersive atmosphere that enhances the customer experience. There’s something inherently immersive about arcades, with their flashy graphics, catchy musical themes, and the excitement radiating from players. In addition to bowling, arcades provide extra fun and eye candy, enhancing the atmosphere of your facility.
Arcades have been known to utilize themes to further create an immersive atmosphere and reinforce the facility’s brand image. For instance, an arcade with a futuristic theme would include games of a sci-fi nature, as well as feature virtual reality games, with lighting and decorations reminiscent of the cosmos. An arcade with an MMA theme would probably use fighting-themed games with lighting, decorations and layout of the facility modeled after sporting arenas. Having an arcade abide by a theme can be a great way to further immerse your audience and enhance their experience.
The nostalgic appeal of arcades certainly cannot be understated. In fact, nostalgia is a popular theme that many arcades go for, with 80s throw-back neon lighting, music, and old school games from that period. Combining the timeless appeal of bowling with the retro charm of arcades creates a vibe that resonates with customers of all ages. Classic games like Pac-Man and Galaga add a layer of enjoyment appreciated by experienced gamers and newcomers alike. Many people have sentimental memories of playing games in these environments, with many younger generations eager to get in on the fun. It is in fact this nostalgic appeal that has led to a renewed interest in arcades, both from older players looking to relive their youth, and younger players curious about the origins of gaming.
So, think about the tone or theme that works best for your bowling alley, and let that be one of the guiding factors in selecting games for your arcade!
Now that we’re excited about the benefits of incorporating arcades into bowling alleys, let’s discuss how to implement these games into your own facility.
Before incorporating arcades into your bowling alley, start by creating a comprehensive business plan. Outline your goals, your target audience, develop a marketing plan, and list any expected costs, and projected revenue you expect to see after installing the arcades. A well-written and detailed business plan will be crucial if you want to secure funding from investors or financial institutions to help cover costs.
What initially scares business owners away from incorporating arcades is the initial financial investments involved, with games typically costing between $5,000 to over $15,000. Some factors that influence the cost of installing games are the number of games you plan to install, the equipment needed, the labor involved, and your choice of games. All this may seem daunting, but with a well-thought-out business plan, any business can have a great chance of securing funding.
Here are some funding options to consider:
Business Partnerships - You can team up with another business to pool financial resources into your business venture for mutual gain.
There are many options to consider for securing funds for your business venture, so take your time before moving forward with a wise decision. Remember to articulate a well thought-out and carefully researched business plan before pursuing any of these funding options!
There are many factors to consider when choosing the right games for your facility. As we’ve discussed previously, these factors include the audiences you plan to reach, the cost of these games, whether or not these games follow a theme, the space available for these games, and how to tactfully position games to maximize profit. When selecting your choice of games, consider a mix of the following types:
Some of our clients currently utilize an intelligent mix of these types of games. For example, Flight 509 has a selection of 50, with a mix of first-person shooters, virtual reality and an assortment of other games. Another client of ours, The Edge, incorporated a mixture of 70 redemption and video games, both classic and new. There are many options to consider, but with a little research you can select games that make the best use of your facility’s space, please your target audiences, and stay within budget.
There is indeed an art to arranging arcade games. As previously touched upon, the positioning of games can help you maximize profit. Make sure to place your high-traffic games in visible locations to increase their foot traffic. And let’s not forget that certain games may also complement other features of your facility, with certain games increasing foot traffic to your dining areas, and games with a time limit placed next to people waiting for their next bowling turn. It is also best practice to group similar games together so that customers have an easier time finding what they’re looking for.
Let us not forget your arcade’s feng shui. Always take your facility’s spatial limitations into consideration when selecting games so your arcade doesn’t feel cramped. Arcades are often very fun, energetic spaces where people should be allowed to move about freely. By ensuring there's enough space for customers to move around comfortably, your arcade area will be more attractive and inviting. And the added use of unique lighting, upbeat music, and themed decor will make your facility more immersive and fun. Creating a visually appealing space goes a long way to drawing your customers in and encouraging them to spend more time (and money) at your arcade.
Integrating arcades into your bowling alley is a smart way to enhance your entertainment offerings and boost your revenue. By following these steps, you can create a vibrant, engaging atmosphere that attracts a diverse audience and keeps them coming back for more.
Ready to take your bowling alley to the next level? Start planning your arcade integration today and watch your business thrive!
In this blog post, you'll discover the cost and ROI of installing or upgrading an arcade at your family entertainment center. Read on to learn more!
Explore the timeless appeal of arcades and how they unite generations through gaming. Discover the magic of family fun for all ages!
Discover how integrating cutting-edge gaming technology into arcades can revitalize the industry.
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