Page 98 - BCM June 2024

REDEMPTION

The ‘Numbers’ Depend on

the Location… and More

How many games should a redemption arcade have? How big should the prize
display be? A look at some of the many business decisions that must be made.

LET’S BEGIN with an observation that should be obvious
but escapes some operators: No two market areas are
the same. When one acknowledges that fact, it makes it
easy to understand why no two redemption arcades can
— or should — be the same.
It begins with population, and how much demand for
a redemption arcade that population would create. But
what if there’s already another operator in town? Then it
becomes a matter of getting your piece of the pie.
Fortunately, the bowling industry is filled with propri-
etors who are more than willing to share their experi-
ences (that’s called “networking”) and some are even
willing to share their numbers.
Ultimately, running a successful redemption arcade
revolves around numbers — not only the points that
guests amass via the various games, but on how the
operator plans the counter or room, settles on pricing,
designs the redemption prize space and implements
marketing programs to encourage longer length of stays
and return visits.
Whether you already operate a redemption arcade or
are looking to add or expand one, the “numbers” that When Hampton Lanes in Northampton, Pennsylvania, was re-
follow are intended to provide some food for thought built after a February 2021 snowstorm destroyed the original,
in your planning process. These numbers cover several the Lauchnor family included a 30-game arcade — featuring a
key areas that must be considered when working on any well-stocked redemption prize display — among the offerings.
redemption arcade project.
makes more sense for an arcade with 20 to 25 games or
The number of games one can comfortably fit in 1,000 more.
8 square feet of space. Games have been getting larger
for years, in part as new multi-player pieces are intro- The approximate margin on which most BEC
duced and in part to more effectively attract the eye of 85 redemption arcades operate. That’s why they are
the customer. Both are valid reasons, but the flip side of so important to a venue’s profitability. They contribute
the coin is that a proprietor can get fewer games in the in ways beyond the margin, too. Because they’re high-
available space — unless they opt for smaller, perhaps throughout, they make great additional-spend areas
less-profitable, titles. for people waiting for a lane, and with the right mix of
games, it’s not unusual to see three generations of fam-
The number of square feet needed for redemp- ily members playing (and spending) at the same time.
125 tion prize space per 1,000 square feet of game
space. This is important because it will inform whether The percentage of customers that will select one of
a center uses a redemption counter or a redemption 95 the dollar amounts suggested on a kiosk for load-
room. With between 10 and 15 games, there won’t be ing to a game card. Typically, a center may offer around
enough tickets/points generated to support a store with six options. The first is a low amount ($5 to $10) that’s
lots of big prizes — so a counter with still attractive but typically for “topping off” a card so the customer can
smaller prizes is the best option. A redemption room collect a few more points for a specific prize. Then

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