03 Dec Family Fun 101: 5 Key Ways to Ensure Your Family Entertainment Center’s Success
Starting your own Family Entertainment Center, or FEC, can be an intimidating and overwhelming process. When plunging into a new business venture in the amusement sector, it is critical to seek out the most recent market research and consult with an industry expert. We spoke with a seasoned veteran of the family entertainment industry, Jerry Merola, the CFO of Foundations Entertainment University, about how to optimize your Family Entertainment Center’s business model to ensure longevity & success. Jerry Merola boasts over 25 years of experience in the amusement industry and runs a comprehensive 2-day educational seminar program covering all aspects of market & financial feasibility, planning, design, financing, development, marketing, and managing a location-based entertainment business. Here are the 5 key factors to developing a successful Family Entertainment Center, according to Jerry Merola:
1. Investigate the market and find your niche
Family Entertainment Center is a broad term and can be applied to many types of amusement facilities. You need to establish which type of facility you want to open, research the market, and set goals accordingly. The main types of FECs seen in the United States today are:
- Bowling Centers
- Miniature Golf
- Trampoline Parks
- Fun Centers
- Indoor Amusement Parks
Being intentional with your time and money upfront will provide you with the confidence and knowledge to be more successful in the long run. The front-end investigation is the key to developing a clear roadmap for the future. The best place to start is a proper market feasibility study. A market feasibility study is a comprehensive analysis that helps determine if your service or business is viable and has the potential to be successful in a specific market. This is essential to understanding the industry and establishing your business’s goals, consumer capability, target demographic, competition, and available investment.
2. Assess your finances and budget accordingly
When planning to open a Family Entertainment Center (FEC), understanding the costs involved is crucial. Jerry Merola, an expert in the industry, explains that several key factors can significantly impact the overall budget.
“The first thing to consider is whether real estate is part of the transaction,” Jerry says. Real estate costs can substantially inflate your budget, especially if you’re purchasing land and constructing a building specifically for entertainment use. On the other hand, two-thirds of FECs lease commercial space, which means they rent an existing building and outfit it with the necessary entertainment features. The size of the venue will also play a role in the development cost.
According to Jerry, the cost range for opening a Family Entertainment Center typically falls between $2 million and $20 million. To better understand and plan your project, Jerry suggests evaluating three essential factors before moving on to the product and service offerings stage of your business plan:
- Real Estate Considerations: Determine whether you will purchase land or lease commercial space.
- Size and Scope of Your Offering: Larger venues with more attractions will generally incur higher costs.
- Target Audience: Whether your FEC will cater primarily to children, families, or adults will also affect your budget.
Jerry highlights that adult-driven entertainment centers tend to be more expensive due to their premium features. These venues often include higher-end offerings such as luxury seating, more elaborate food and beverage services, and specialized attractions, making them about 50% more costly than a family-focused entertainment center. In contrast, a children’s venue is typically about 30% less expensive than a family-oriented center, as the offerings are generally simpler and more cost-effective. Jerry concludes “As you sort of drop down the age segments, the cost of development tends to decrease as well.”
3. Incorporate multiple attractions & experiences
The human ability to remain engaged and entertained has changed dramatically over the years, forcing the entertainment industry to change to stay effective. There are many different ways to be entertained, from social experiences like karaoke or bowling to more independent experiences like arcade games and augmented reality headsets. Providing diversity in options ensures that there is a little something for every family member. As Jerry Merola explained, “People like to do different things, and because of that, we don’t want to see the consumer just one time. We want to see you four or six times this year. And to do that we’ve got to make sure that the experience offers many different styles within the four walls.” This means that providing diversity that allows for rotation and exchange of attraction is critical for a successful center. Do not be a one-and-done facility.
Keeping all members of the family entertained is paramount to your business model. Family entertainment centers need to be more than just one element or experience to be unique and remain memorable. You must cater to the entire consumer experience and encourage them to spend more time and money within your facility. Having options for food and drink that are easily accessible and enjoyable for the whole family makes them more likely to stay longer and enjoy it. Having areas that provide a relaxed space curated for adult guests or even prioritizing the adult experience can also be beneficial.
“If you want to be profitable in the business, if you want to create a sustainable business concept, you need a brand and a set of goals that support the consumer, allow the consumer to feel good while they’re on the property, and allow the consumer to say, Hey, I’d be willing to go back, because the perceived value, the dollars that I spent compared to the entertainment experience, were very much in line with what I would expect.” – Jerry Merola
4. Do not cut corners on quality.
Alongside proper research, being ready to invest the necessary funds and efficiently apply them to different areas will save you money in the future and ensure you are providing the best quality experience for your consumers. The industry has evolved, making entertainment more detailed and complex. As Jerry Merola explains, “The experience, the ambiance, the environment, the furniture, all play a role in how the guest feels about their experience in an entertainment venue.” A memorable experience can come down to small details, like mood lighting, intricate tufting on the furniture, or fun Instagrammable signage/ art. Don’t let mistakes like low-quality ingredients, lack of food options, or peeling and fraying sofas leave the consumer disappointed. Our furniture is constructed so it can stand the test of time, to ensure the longevity of your upholstered seating, select a commercial grade fabric with over 50,000 double rubs. Another tip for specifying commercial furniture is to make sure that the furniture manufacture offers structural warranties for their products. To sum it up, spend money now so you don’t lose money later. FECs are a front-loaded investment, meaning you should spend the majority of your budget before opening your business to set yourself up to profit for decades with minimal maintenance or replacement costs. Use our list of established and trusted organizations as a resource for purchasing bowling or family entertainment products:
The family entertainment industry has proven to be resilient over unprecedented economic climates. This should encourage you to invest properly and be intentional in your creative process because it will provide a more discerning guest experience and be more effective for you in the long run.
“This is one of those unique industries that has the ability to produce strong cash flows and strong profitability and an industry that still demands a physical presence.” – Jerry Merola
5. Remember why you are there.
Along with understanding your market and properly investing, it is important to remember your ‘why’ for opening a family entertainment center. Everyone’s ‘why’ is different, you may think it is solely financial but on a less superficial level, you probably want to open an FEC for a more selfless reason – you want to have fun and you want to create a social hub where your community can have fun for years to come. You want to curate a pleasurable experience for others that will profit you. These experiences may become core memories for children or teens and will be an intangible resource to draw happiness from. For example, Jerry Merola says, “You know, you might be suffering from a personal financial challenge at home, so you might give up buying a new car or buying something new for your household, but you’re not giving up your kid’s birthday party.” This statement illustrates this industry’s crucial role in family bonding & growth. It is important to see the value in what these facilities can do for people and how your business can bring joy and fun to the community in a unique way.
If you’re still craving more knowledge on opening a successful family entertainment center, pop on over to Foundations Entertainment University’s website and take a look at their upcoming seminars.