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| STARTING OR UPGRADING YOUR FEC, ARCADE OR GAMEROOM ? |  |
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> Home > Master Selection Guide > Game FAQ's > Starting A Commercial Arcade / Family Entertainment Center Information Guide |
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Both "standalone" arcade game rooms and the larger " Family Entertainment Centers " (FEC in industry jargon) are becoming more popular across America, as today's increasingly hostile environment encourages parents to seek out exciting activities for their children locally, and young and older adults seek out the hottest new and classic old arcade games to play. A "standard-sized" arcade gameroom can range anywhere from 1000 to 10,000 sq ft, while a typical Family Entertainment Center starts at around 10,000 sq ft (indoor facility) and up to a multi-acre, multi-million dollar indoor/outdoor facility. Smaller arcades under 2500 sq ft are usually easy to plan, design and get up and running in a short amount of time, with the help and assistance of one of our experienced commercial arcade planners helping you to select the correct mix of games depending on your arcade location, space, theme, demographics and budget. Most small arcades can be planned and launched within 4 to 6 weeks or less, while launching a large arcade or family entertainment center requires more planning time, and usually takes from 3 to 12 months or more to properly prepare and execute a facility plan. As opposed to standard style video arcades with upright and sit-down video arcade games and redemption games, family entertainment centers generally include "large format" attractions like laser tag rooms, miniature golf courses, miniature bowling alleys, go-cart racing tracks, baseball batting cages, motion ride simulators, amusement-type large rides and other such major-type arcade attractions, and again takes a much longer amount of time to plan, order and implement. Because an arcade or family entertainment center's success is mainly dependent on repeat local customer visits, they are usually located near high-density residential areas, schools, malls or high traffic retail and commercial zones. The size and location that is right for your local area depends mainly on the population size and "market demographics" of your area, and of course your project budget, factoring in any "competitors" currently operating in or around your geographical area, as well as taking into account any local zoning ordinances. Planning a large for-profit arcade gameroom or family entertainment center is usually not a small undertaking. There are many points to consider, and having a well-prepared business plan for your arcade is crucial for your success. Larger-type FEC's that can cost upwards of $1,000,000 or more should seriously consider a comprehensive Site Feasibility Study, which runs about 100 or more pages, and is extremely useful when determining the future success of your project, as well as being very instrumental in obtaining financing for your new FEC. The flat fee for this service runs about $10,000 per study, and we can arrange for this study to be conducted on your behalf by one of our partner firms who specializes in this service. Good planning for any sized business is essential, and in the arcade gaming business there are a few basics that must be addressed upfront. Your most immediate concern, outside of your business plan and obtaining financing, is being sure that you can get zoning approval for your arcade or family entertainment center from your local Zoning Board before you proceed. Although most cities have now relaxed the strict codes of the past that have discouraged many arcades and some family entertainment centers from operating, there are still a few cities out there where the size and location of your arcade is strictly regulated, or even banned in some rare cases. Once you have obtained zoning approval and have determined the location/size of your arcade, and have completed your initial business plan, the next step is to set a "game budget" to assist you in the "floor planning" of your arcade, and then determining the proper "game mix", which will be largely dependent on both the local demographics of your market, your marketing plan and the type of facility you want to create, with the game mix primarily being determined on the age range you are planning to appeal to - Are you going for a small arcade for teenagers, a facility catering to children and their parents, or perhaps a "Dave & Buster's" type approach catering to young and middle aged adults with liquor and food being served, or perhaps something entirely different? BMI Worldwide's experts are ready and willing to assist you with these steps and more from A to Z, to help you start your new Arcade Gameroom / Family Entertainment Center. After completing all of the above, your final task is to actually purchasing your games and related arcade equipment. Depending on the type and size of your arcade, this could include anything from the actual games to "prize booths" for redemption games, back-office computer systems, cash registers, kitchen supplies for a food stand, tables/chairs, etc for larger facilities, plus you will also need to determine how your customers will pay for their games, either change, tokens or the newer "card swipe" readers that eliminate the hassle of token collection and give you real-time data on the profitability of your game mix. All of this will all depend on the actual size of your arcade, your budget, your "theme" and what games you ultimately select. Finally, once you have completed all of the above steps and are preparing to open up for business, the next crucial step is getting the word out to the public. Successful marketing of your new arcade or family entertainment center is paramount, and there are all types of marketing tools and ideas to choose from. Among these choices, some of the most effective can be direct advertising, ie; display ads in your local weekend entertainment guide or local newspaper, radio and cable ads, yellow page advertising, offering discount coupons through your local print media, etc, as well as creating a high- quality website that showcases your gameroom, or partnering with local non-profit organizations, schools, churches, youth centers, charities, and finally, creating a high-quality brochure about your arcade or family entertainment center, complete with pictures, driving directions and operating hours.
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