Increase Customer Stay Time and Spending
In bars or restaurants, arcade machines can increase the stay time of customers from 15 minutes to half an hour longer per person No need to point out that is extra time for spending. According to market surveys, customers often add 1 to 2 drinks or snacks when they are having fun with arcade games. When it comes to waiting periods, customers are more likely to engage in the games, effectively limiting boredom and improving customer experience.
Signage for one chain bar indicated the installation of arcade game machines resulted in a customer average dwell time increasing from 1.5 hours to 2 hours, and an average cash spend per person across the site increased by +12%. In another instance, an outlet reported that it made 1,500 yuan a month with each of its cabinet-style arcade game merchandise, which speaks volumes about the dual entertainment and revenue opportunities offered by these machines.
Provide Competitive Differentiation
Arcade game machines not only increase dwell time for customers while at your bar or restaurant but also bring a unique competitive advantage and are more likely to attract younger demographic markets. Arcade games have become more popular with ages 18-35; some surveys showed that this group accounts for 70% of the entertainment market embracing Interactive Spaces. This means that bars or restaurants can use arcade games to draw in these customers and bring them in for how much time they will spend.
Because nothing says keeping your guests happy is better than arcade game machines, player satisfaction rates can increase by up to 15% in venues that invest in playable amenities, giving establishments the edge over direct competitors who would not have such facilities. Five arcade machines arrived at a themed restaurant in the U.S., and over the next year, it not only strengthened its brand presence but made sure to have customers coming back about 25% more than they used to. This differentiation strategy made it different from those other restaurants that were close to the restaurant.
Investment Cost and Maintenance
The investment cost of an arcade game machine varies greatly according to model and configuration, generally between 5 and 20 thousand. For this small and medium-fai unit, buying 5 to 10 arcade machines is equivalent to coping with between disbursement in a year of about fifty thousand ~ one hundred to hua thousand yuan.
The arcade game machine is generally maintained once or twice a month, and the maintenance fee for each time will cost 500-1k yuan. The cost to fix such a machine can be up to 1,500 yuan if it fails. Some machines can only attract customers if they are in good condition after a long operation so that the original order is disrupted. Three to five thousand software upgrades or game replacement costs need to be invested every year to maintain customer freshness for some types of machine operations. As such, any revenue calculation neglecting long-term maintenance and update costs is are unrealistic investment decision.
Target Customer Group Analysis
People above the age of 18 to 35 are more likely to be targeted as customers mainly because they enjoy playing games with their friends in a social environment. 60% of millennial customers report being more likely to choose a bar or restaurant that includes arcade games in its list when they are waiting on others. On top of that, arcade games have a higher barrier for entry; customers pay 5–10 yuan per game session (depending on different types), and there are also repeated income stream opportunities.
Every place is not appropriate to serve an inner city arcade bar. Arcade machines may have limited appeal for high-end business professional restaurants. Arcade games appear out of place with these customers who value a quiet, quiet dining environment. On the other hand, there are arcade machines that provide a game with casual bars or at fast-food restaurants and more family-oriented locations.
Regulations and License Requirements
Legal requirements will differ between different countries and regions relating to placing arcade game machines in bars or eatery. In China, some provinces and cities also require an additional entertainment license for these facilities may involve specific taxes as well. The Shanghai license application fee for entertainment facilities is 2-5000 yuan and differs according to hardware varieties. You may also be periodically inspected to ensure you are complying with safety and entertainment regulations.
