5 Minute Read

Are you an aspiring entrepreneur with a passion for fun and entertainment?

Opening a family entertainment center can be rewarding and profitable if done correctly. If you’re invested in your customers’ happiness, you’ll be able to provide an unforgettable experience every time.

Doing it for the right reasons will help you outperform your competitors and keep smiles on your customers’ faces. But that doesn’t mean it’ll be easy.

This post will tell you how to start a family entertainment center business with staying power. In the last few years, family entertainment or family fun centers have gone from impromptu roadside stops to destinations. Keep reading to learn what you need to do to turn yours into a success.

What Is a Family Entertainment Center Business?

Family entertainment centers (FECs) are more than just arcades. They’re dynamic, evolving hubs creating shared experiences for families and friends. Think bowling alleys with escape rooms, trampolines alongside VR adventures, and laser tag paired with gourmet pizzas. The possibilities are endless.

There’s no one-size-fits-all formula for an FEC, but the market is booming. According to a recent report by Allied Market Research, the global FEC market reached a staggering $30.9 billion in 2022 and is projected to double by 2032, fueled by rising disposable incomes, increasing urbanization, and growing demand for immersive, experience-driven entertainment.

An FEC might incorporate various theme park elements. There aren’t specific rules to being a family entertainment center, but opening one requires a lot of market research first. The Global Family Entertainment Center market was valued at $26B in 2023, with growth projected to reach 10% between 2024 and 2027. There’s never been a better time to open up an FEC, so perhaps it’s time to sit down and start thinking about your niche.

This robust growth reflects a shift in consumer preferences. Today’s families crave engaging, interactive activities that foster connection and create lasting memories. FECs fill this gap with diverse offerings and focus on social interaction.

Thinking About Your Niche and Types of FECs

The family entertainment center scene is bursting with variety. Here’s a quick peek at some popular types:

Theme Park Thrills: Get your adrenaline pumping at FECs inspired by classic amusement parks. Think roller coaster simulators, high-tech bumper cars, and virtual reality adventures that whisk you away to fantastical worlds.

Activity Powerhouse: These FECs are action-packed playgrounds for all ages. Scale climbing walls, conquer ninja warrior courses, jump for joy in trampoline parks, or bowl your way to victory. Some even add a dash of adventure with escape rooms and laser tag arenas.

Edutainment Adventures: Learning can be fun! Edutainment centers combine education with engaging activities. Explore interactive exhibits on science, history, or art, get creative in DIY workshops, or attend educational theater shows. It’s a win-win for families seeking knowledge and entertainment.

Family-Friendly Focus: Some FECs cater specifically to younger audiences. Think soft play areas for toddlers, interactive games, and character meet-and-greets. These havens of laughter and imagination ensure precious bonding time for little ones and their parents.

Specialty Concepts: Find your niche! The possibilities are endless, from dedicated VR arcades and eSports centers to immersive cooking studios and themed gaming cafes. So, find your passion and build an FEC that caters to your unique interests.

This is just a taste of the diverse FEC landscape. Remember, the key is to find your niche and create an experience that families can’t resist!

It’s one thing to have a vision for a family entertainment center and another to open one that people want to go to. Research to determine what other family entertainment centers are open in your city and what types of entertainment they provide. 

If you’ve got a specific idea – an indoor mini-golf course with a virtual driving range and a restaurant – you must ensure no similar businesses in your area. It would help if you also considered who your target demographic is against the demographics for your chosen location. Many entertainment options exist, from trampoline parks to virtual reality, laser tag, and axe-throwing. Understanding your target audience and opening the right business in the right area is critical to any FEC’s success.

Thinking About Location

The main thing about a physical location is finding a building that can accommodate your equipment. You risk altering your overall plan if you don’t know how large you need a building before you buy or lease.

Find a location that balances between being the right size and being in a desirable spot. FECs are usually in the middle of the action, as part of malls or other activities. A prime location can help you find customers before starting your marketing efforts.

Also, consider your state and municipal building code laws and how they might impact construction on your building.

Write Your Business Plan

If you’ve never written a business plan, many templates and resources are online. A business plan outlines what you need to work on to get your FEC up and running. It should include a market analysis, financial plan, marketing plan, operational plan, and HR plan, among other things. 

A good business plan can guide the first days, weeks, months, and even years of running your business. It doesn’t set anything in stone, but when you lose sight of the original vision, a business plan helps keep you on track.

While looking at the logistical side of things, determine your business structure (partnership, corporation, sole proprietorship). Then, register for an EIN and get business insurance.

Pulling the Finances Together

You must obtain outside funding unless you’ve built significant wealth to finance your FEC. Getting a business loan requires a solid business plan with a thorough budget. The cost of a family entertainment center depends on the business you’re opening.

A small business loan will allow you complete ownership and control over your FEC. Your other option is to try to find funding from venture capital investors. This protects your personal finances, but you’ll probably have to give up shares in the business.

Check out our post on the 4 C’s of credit. At Betson, we want to help finance our customers’ arcade projects. Fill out a credit application today to see if you qualify.

Purchase Equipment, Start Building, Start Hiring

With funding secured, you can start purchasing your equipment. Family entertainment center equipment will be the most important aspect of opening your business. To achieve your dreams, you must hire experienced designers, equipment experts, and builders.

At Betson, we specialize in Arcade Game Room installations and can help consult on the design of your building. We also have a vast product catalog to help outfit your FEC. It features everything from arcade games and vending machines to jukeboxes and prize merchandise.

You’ll also need to work with contractors. Electricians, plumbers, carpenters, and other tradespeople must help prepare the building. It will be a long, expensive process, but hiring the right people will ensure your FEC is top-notch upon opening.

Once your building is in order, it’s time to sit down with your top brass and hire employees. 

Designing Your Arcade Game Room

The arcade can be the most profitable part of your business, so your layout and design must make the most of your space. Here are some quick numbers to give you an idea of the investment.

• Average Per Game Budget: $12,000-$15,000*
• Average Per Game Revenue: $250/Week*
• Average Per Game Space Allocation: 70 Square Feet*

How many redemption games should you have? Should you be adding VR Arcade Games? These questions are why finding the right game room partner is essential. You may need a consultant or a full-service distributor, but making the right choices will affect your bank account.

Unleashing the Digital Roar: Mastering Marketing for Your FEC

Pre-launch marketing for your Family Entertainment Center (FEC) isn’t just about spreading the word – it’s about building excitement, anticipation, and brand loyalty before you even open your doors. Here’s how to roar into the digital jungle and attract your target audience:

Digital Powerhouse:

• Website as Your Hub: Build a user-friendly, visually stunning website that showcases your unique offerings, pricing, location, and opening date. Integrate booking options, event calendars, and interactive features like virtual tours. Optimize for mobile and local search to ensure easy discoverability.
• Social Media Magnet: Go where your audience is! Create engaging profiles on Facebook, Instagram, TikTok, and other relevant platforms. Share captivating content like sneak peeks, behind-the-scenes glimpses, fun challenges, and interactive polls. Run contests and giveaways to generate buzz and build a loyal following.
• Content Creation King: Become a source of family entertainment! Craft eye-catching videos showcasing your activities, game highlights, and happy customers. Write blog posts about family outings, event planning tips, and local family fun options. Utilize strong SEO practices to rank high in search results and attract organic traffic.
• Targeted Adrenaline: Utilize paid advertising platforms like Facebook Ads and Google Ads to target specific demographics and interests. Design captivating ad campaigns featuring irresistible offers, special deals, and family-friendly visuals. Track your results and adjust your targeting to maximize reach and effectiveness.
• Influencer Amplification: Partner with local family bloggers, parenting influencers, and relevant YouTube channels. Offer exclusive previews, host events, or collaborate on sponsored content. Leverage their reach and trusted voices to tap into new audiences and build brand trust.

Beyond the Digital Screen:

• Traditional Touches: While digital reigns supreme, don’t underestimate the power of traditional marketing. Use eye-catching billboards, strategic radio spots, and targeted print ads in local publications. These can grab attention and build brand awareness among those less active online.
• Community Engagement: Partner with local schools, organizations, and businesses. Host joint events, offer special discounts, or participate in community initiatives. This builds goodwill, increases visibility, and attracts families looking for local fun.
• Grand Opening Extravaganza: Make your opening day a memorable event! Organize grand opening festivities with music, games, special offers, and VIP experiences. Invite local media, influencers, and families for a fun day and create buzz through social media and press releases.

Remember, your marketing efforts are not a one-time sprint but an ongoing marathon. Continuously analyze your results, adapt your strategies, and stay on top of emerging trends. By putting resources into a well-rounded, omnichannel marketing approach, you’ll ensure your FEC becomes the go-to destination for families seeking laughter, excitement, and long-lasting memories.

So, unleash your inner marketer, tap into the digital and traditional avenues, and watch your FEC roar to success!

Stay Ahead of the Curve: Continuous Learning for FEC Success

Opening your family entertainment center (FEC) is just the beginning! To thrive in this dynamic industry, continuous learning and growth are essential. Here’s a deeper dive into the various avenues for expanding your knowledge and keeping your FEC on top:

Formal Education:

• Industry seminars and workshops: Dive deep into topics like game room design, marketing strategies, operational efficiency, and safety protocols. Look for reputable organizations like IAAPA (International Association of Amusement Parks and Attractions) or FEC Success Institute for upcoming events.
• Certifications and professional development programs: Elevate your expertise by pursuing specialized certifications in arcade equipment maintenance, food safety, or youth entertainment programming. These demonstrate your commitment to professionalism and can attract skilled employees.
• Online courses and webinars: Take advantage of flexible learning opportunities with online courses and webinars covering everything from customer service excellence to the latest trends in virtual reality entertainment. Choose platforms like LinkedIn Learning, Udemy, or industry-specific online academies.

Networking and Community:

• Industry associations and Facebook groups: Join communities like IAAPA, FEC Connect, or regional networking groups. These platforms offer invaluable resources, peer-to-peer support, and opportunities to connect with industry leaders and learn from their experiences.
• Trade shows and conferences: Attend major trade shows like IAAPA Expo, Amusement Expo International, or EAG International. These events showcase cutting-edge equipment and innovative technologies and offer networking opportunities with vendors, suppliers, and fellow FEC owners.
• Mentorship programs: Seek guidance from seasoned FEC veterans through mentorship programs or informal consultations. Their insights and advice can be invaluable in navigating challenges and setting your business up for long-term success.

Staying Informed:

• Industry publications and newsletters: Subscribe to magazines, newsletters, and online blogs dedicated to the FEC industry to stay up-to-date on market trends, new technologies, consumer preferences, and regulatory changes.
• Podcasts and online forums: Listen to industry podcasts and participate in online forums where experts and owners share insights, tips, and best practices. Learn from their successes and challenges and contribute your expertise to the community.
• Competitor analysis: Monitor your local competition and successful FECs nationwide. Observe their offerings, marketing strategies, and customer engagement tactics to identify potential areas for improvement in your business.

Continuous learning is not just about staying informed; it’s about being proactive and adaptive in a fast-evolving industry. Investing in ongoing education, nurturing industry connections, and staying informed ensure your FEC stays relevant and innovative and continues to bring joy and excitement to families for years to come.

Remember, in the world of FECs, the only constant is change. Embrace continuous learning; your family entertainment center will always be a destination for fun, laughter, and lasting memories. Trade shows are a great way to network and learn about industry trends. See a list of upcoming shows here.

Learning How to Start a Family Entertainment Center Business From Scratch

Now that you have a better idea of starting a family entertainment center business from scratch, you can work on market research and planning your business. If you get all your ducks in a row and choose the type of FEC you’re passionate about, you’ll start seeing results immediately.

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*Estimates may vary.