When opening an arcade in 2024, the first step is to conduct market research to understand local consumption trends and customer demographics. The global arcade market size is expected to reach 3.2 billion USD, popular among young people and families. The location should be in high-traffic malls or entertainment venues, with monthly rent around 2000 to 5000 USD. Equipment procurement will require between 3000 to 15000 USD per machine, and maintenance costs account for 5% to 10% of the machine price. Additionally, you will need to apply for the relevant business licenses and equipment operation permits, and the promotion budget is recommended to be 3000 to 5000 USD for both online and offline campaigns.
Market Research
The global arcade game market size is expected to reach 3.2 billion USD in 2024, a growth of about 10% compared to 2023. The main player demographic is young people aged 16 to 35, with about 60% being male. Family entertainment also accounts for 20% of the market, especially during weekends and holidays when families have a significantly higher demand for arcade games. Consumption surveys in specific areas can be conducted through questionnaires or online data analysis to understand customer frequency and preferences. Surveys conducted around shopping malls or entertainment venues show that about 75% of young people visit an arcade once a month, and 50% are willing to spend 20-50 USD per visit. Based on this data, plan the shop size and equipment accordingly.
Location and Leasing
The ideal location should be in high-traffic areas such as large shopping malls or near cinemas. In 2024, large shopping malls in the U.S. will have an average daily footfall of 8,000 to 10,000 people, especially during weekends and holidays. Rent prices in these locations range from 2,000 to 5,000 USD per month, depending on the geographical location and shop size. It is generally recommended to choose a shop with an area of 80 to 120 square meters to accommodate at least 20-30 machines and provide enough space for customers to move around. The average power consumption of each arcade machine is between 200W and 500W. If you plan to install 30 machines, the power requirement will be at least 15 kilowatts, with a monthly electricity bill estimated to be around 500 to 800 USD.
Equipment Procurement
In 2024, the price of arcade machines ranges from 3,000 USD to 15,000 USD per unit, depending on the type of machine. Classic machines like “Dance Dance Revolution” are priced around 8,000 USD, while virtual reality (VR) equipment can go as high as 15,000 USD. A medium-sized arcade typically has 20 to 30 machines, with a total investment ranging from 60,000 USD to 250,000 USD. The maintenance cost for arcade equipment is generally 5% to 10% of the purchase price. For example, a machine priced at 8,000 USD will have an annual maintenance cost of around 400 to 800 USD. Routine maintenance includes equipment inspection, part replacement, etc. It is recommended to sign long-term service contracts with suppliers to ensure stable operation.
Legal and Licensing
Depending on the region, license fees range from 500 to 2,000 USD. In the U.S., the licensing process usually takes 4 to 8 weeks, so planning ahead is advised. During the license application process, you will also need to submit store floor plans, electrical wiring plans, and other documents to ensure compliance with local safety and fire codes. Fire safety is especially important; the store should be equipped with enough fire extinguishers and emergency exits to ensure the safety of customers and employees. If you plan to hire employees, you must comply with state minimum wage laws, for example, the minimum wage in California is 15 USD per hour.
Marketing and Promotion
It is recommended to allocate a marketing budget of 3,000 to 5,000 USD before the opening. Online promotion can be done through platforms like Facebook, Instagram, and Google Ads, with a daily budget of 50 to 100 USD, resulting in 5,000 to 10,000 clicks per month. In 2024, short video platforms such as TikTok and YouTube remain important marketing channels. Posting arcade gameplay videos or creative ads can quickly boost brand visibility. You can also hold gaming competitions during the opening to attract customer participation, with prizes such as free game tokens for the first place, attracting more potential customers.
Management and Operations
Monthly maintenance costs for equipment range from 500 to 1,000 USD. It is recommended to have professional technicians perform regular inspections to reduce failure rates. The number of employees should be determined based on the size of the shop. A shop of 50 square meters typically needs 1-2 employees, while a shop larger than 80 square meters is recommended to have 3-5 employees. The monthly payroll cost for employees is around 5,000 to 8,000 USD. Additionally, setting up a membership points system can encourage repeat customers. Customers can earn 1 point for every 10 USD spent, and 50 points can be redeemed for 5 USD worth of tokens or free games. In 2024, mobile payments have become mainstream. Studies show that equipping the shop with Apple Pay, Google Pay, and other payment systems can increase customer spending by about 20%, so it is recommended to install these payment methods.
