Page 69 - BCM July 2024

ATTRACTIONS INSIDER

Growing in a Tough Economy

Even in challenging times, opportunities abound to improve market share.

musement Expo International 2024 was noticeably proprietors and test new ideas for improving operations, es-
Alarger and more crowded than in years past. AEI pro- pecially in the aforementioned areas. Group and party sales
vides an opportunity to get updated numbers on new games are still strong, so now is a great time to dial in operations to
(some introduced at the IAAPA Expo in November but not be ready to maximize your holiday party business.
yet ready to ship), and we now have sales data. To implement the best pricing model for your location,
e bowling industry has seen remarkable it’s important to understand who your customer is, how
growth in arcades and family entertainment much of your business is paid for in cash versus credit
attractions over the last 15 years. Each year, cards, as well as how your customers value their experience.
it seems there are more options for propri- All of these factors can help you maximize sales without
etors to consider as they build new venues raising prices.
or upgrade existing facilities. Speak to your game distributor, card system provider and
HOWARD e economy and industry have slowed redemption vendors to make sure you are using all of the
McAULIFFE somewhat in 2024, after over 10 years of sus- tools at your disposal to track and optimize payouts. While
tained growth. e state of the industry has speaking with them, also ask for ways to better utilize their
us thinking di erently about how we spend systems in your business.
our time and dollars. While improving operationally is important, it’s also
We have seen a clear decline in arcade sales in 2024, aver- important to continue to invest capital in your business. We
aging 10% below 2023 in bowling centers. e primary fac- typically suggest reserving 5% of revenue and using that,
tors in this decline are reduced spending during the week, along with trade-ins, to reinvest in games and attractions
less spending from lower income customers, and declines every year.
in saturated markets. In the arcade, most of that investment typically goes into
e bad news is that spending during the week is declin- the hottest new games on the market. It’s always important
ing. e good news is weekend business, as well as group to consider the long-term ROI of games, how much new
and event business, is still strong. revenue is added as opposed to cannibalized from other
e stimulus checks from the government during the games, and how much maintenance a game requires.
pandemic put a lot of money in the pockets of consumers, is year, we are being more discerning than ever with
but all indications are that is starting to run out. capital investments. We do not advocate purchasing games
Competition has heated up as more bowling centers are just to have something new, but rather with a clear goal in
built, movie theaters have added bowling and arcades, mind to drive sales or pro ts.
malls have added arcades, and larger brands like Bowlero, In locations that already have all the top earners, we are
Round1 and Main Event continue to build new locations. considering replacing older games that still earn but have
Increased competition leads to lower sales as consumers become a maintenance challenge, buying a second tried-
have more choices for similar types of entertainment. ere and-true game, and replacing games that are coming to
are clear headwinds impacting pro tability, so what can their end of life from the manufacturer.
be done about it? e answer is focus on ways to improve A game released post-Amusement Expo that we are look-
operational e ciency and continue to re-invest carefully. ing forward to seeing is “NBA Superstars,” a new game by
In our consulting business, 2024 has been the busiest Raw rills. e early buzz is positive, and we are looking
year yet, and much of that business is dedicated to helping forward to more sales numbers to validate the buzz.
bowling centers improve their operational e ciency. e Many proprietors will pause spending when sales decline.
areas we have found where centers can improve most often is is a great opportunity to pass them by with investments
are: in improving operations and strategic capital purchases.
• Group and party sales and execution. One of the best times to gain market share is when there
• Implementing custom pricing models to drive sales. is a downturn in the industry. If a center can improve and
• Redemption and crane payout. (Do you know what gain new, loyal customers, that helps in the downturn and
your cranes are paying out? Most bowling center operators continues to pay dividends for years to come.
do not.)
• Using existing systems and vendors to their full Howard McAuli e is vice president of Pinnacle Entertain-
potential. ment Group and has more than 20 years of experience in the
It’s important to speak with vendors, network with other FEC industry. He can be reached at 314-378-4522.

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