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 committed to your customers’ happiness, you’ll be able to deliver 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 guide you on how to start a family entertainment center business with lasting success. Family entertainment or family fun centers have gone from impromptu roadside stops to destinations in the last few years. Continue reading to discover the steps you need to take 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 Family Entertainment Center (FEC) market was valued at $30.8 billion in 2022 and is projected to reach $108.4 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 12.1% from 2024 to 2033. This significant growth is fueled by rising disposable incomes, increasing urbanization, and a growing demand for immersive, experience-driven entertainment, including the integration of new technologies like augmented and virtual reality.

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 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.

Exploring Different Types of FECs

These examples are 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 visit. Research your area to identify other family entertainment centers in your city and the types of entertainment they offer. 

If you’ve a specific idea, such as an indoor mini-golf course with a virtual driving range and a restaurant, you must ensure that no similar businesses exist in your area. It would also be helpful to consider your target demographic in relation to the actual demographics of 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 to consider when choosing a location is finding a building that fits your equipment and needs. You risk altering your overall plan if you don’t know how large a building needs to be before you purchase or lease it.

Find a location that strikes a balance between the right size and a desirable spot. FECs are typically located in the center of the action, often within a mall or another attraction. A prime location can help you attract customers before you begin 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

Many templates and resources are online if you’ve never written a business plan. 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 well-crafted business plan can guide you through 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.

When considering the logistical aspects, determine your business structure (partnership, corporation, or 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. Obtaining a business loan requires a solid business plan accompanied by a thorough budget. The cost of a family entertainment center depends on the business you’re opening.

A small business loan will allow you to gain complete ownership and control over your FEC. Your other option is to seek funding from venture capital investors. This protects your personal finances, but you’ll likely have to give up your 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 your business opening. 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 for occupancy. 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.

Check out our full blog post on Arcade Game Room Design.

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, such as virtual tours, to enhance the user experience. 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, such as sneak peeks, behind-the-scenes glimpses, fun challenges, and interactive polls, to engage your audience. 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-friendly activities. Utilize strong SEO practices to rank high in search results and attract organic traffic.
• Targeted Adrenaline: Utilize paid advertising platforms like Facebook 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 to amplify your brand. 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 conventional marketing. Use eye-catching billboards, strategic radio spots, and targeted print ads in local publications. These can capture attention and foster brand awareness among those who are less active online.
• Community Engagement: Partner with local schools, organizations, and businesses to foster a sense of community. Host joint events, offer special discounts, or participate in community initiatives. This builds goodwill, increases visibility, and attracts families seeking local entertainment.
• 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, adjust your strategies, and stay ahead of emerging trends. By using a strong, all-around marketing plan, you can make your FEC the top choice for families. They will come for fun, excitement, and great 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, such as IAAPA (International Association of Amusement Parks and Attractions) or the 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 a wide range of topics, from customer service excellence to the latest trends in virtual reality entertainment. Select platforms such as LinkedIn Learning, Udemy, or industry-specific online academies offer a variety of options.

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, such as IAAPA, Amusement Expo International, or EAG International. These events showcase cutting-edge equipment and innovative technologies, offering 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 to stay ahead of the curve. 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 adaptable in a rapidly evolving industry. Investing in ongoing education, nurturing industry connections, and staying informed ensures your FEC remains relevant and innovative, continuing 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 an excellent way to network and stay informed 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.

Case Study: Gold Rush Family Fun Center’s Success with Betson Enterprises

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*Estimates may vary.