How to open a profitable children's amusement park and arcade?

Every time you go to the shopping mall with your parents, where is the place you look forward to the most? Could it be the arcade? Racing cars, grabbing dolls... There are all kinds of game machines, and once you start playing, you can't stop.

But have you ever thought about whether the arcade is profitable? How can you run a good arcade? Let's go back to the arcade again to explore the business logic behind it.

Location Analysis

The revenue of a park mainly depends on two aspects: location and operation.

Location determines the flow of customers, while operation determines the conversion rate of the flow.

When choosing a location, consider the following factors:

1. The foot traffic of the store (foot traffic is the foundation of the store, so choose a place with a large flow of people);

2. The surrounding consumption ability (including housing prices and the charging standards of related industries, which directly affect the unit price and continuous consumption ability);

3. The number of fixed customer groups around (especially to investigate the customer groups within a three-kilometer radius, they will become the main consumer groups in the future);

4. Competitor analysis (understand whether there are competitors in the same industry around, how their decoration, equipment, and charging standards are, so as to analyze whether there are new opportunities);

5. The store location should be chosen on the 1st to 3rd floors, and the locations on the -1st floor and above the 4th floor are not allowed to open children's parks, because it will affect fire safety.

It is recommended to give priority to the following locations:

1. Commercial complexes, because the shopping mall itself has a large flow of people, which can continuously bring traffic to the store;

2. Near large residential areas, because these places have a fixed consumer group;

3. Areas where similar stores are concentrated, such as areas where maternity and baby stores, children's clothing stores, and children's training institutions are concentrated.

Cost Budget

The cost of running a children's park mainly includes: rent, utilities, labor costs, decoration, equipment, promotional expenses, and working capital. The specific cost budget needs to be calculated according to different cities and areas.

If you already have a suitable venue, you can contact us, Pandora Animation, and we will provide you with professional site planning and calculate relatively accurate costs.

Contract Signing

When signing a contract, pay special attention to the following matters:

① Decoration period;

② Rent-free period;

③ Actual usable area;

④ Property fees;

⑤ Utilities;

⑥ Rent;

⑦ Contract term;

⑧ Rent payment method;

⑨ Whether subletting is allowed;

⑩ Whether transfer is allowed.

All the above matters should be clearly stated in the contract to avoid unnecessary disputes in the future.

License Handling

The main licenses required to run a children's park include a business license, a fire permit, and a health permit. Generally, you only need to handle these three licenses, and the specific handling process can be consulted with the local relevant departments.

It should be noted that if you plan to introduce large-scale arcade game machines (such as lottery machines), you need to handle an additional entertainment business license.

Equipment Purchase

When choosing equipment, be sure to choose a manufacturer with strength. A strong manufacturer has rich experience, a complete range of products, and good after-sales service.

When inspecting the manufacturer, make sure they have their own exhibition hall and factory, and have company registration information. There are many intermediaries in the industry who do not have their own factories and exhibition halls, and they only sell equipment by renting offices, and they are not responsible for after-sales service after the sale.

Cooperating with a strong manufacturer is crucial because they have a wealth of cooperation cases and real data, which can provide valuable industry experience and help you avoid unnecessary risks.

Our Pandora Animation is a strong manufacturer that has been focusing on the amusement industry for many years, with its own factory and exhibition hall, cooperation cases all over the country, and its own direct-sales stores. At the same time, we also have a professional production team, site planning team, and after-sales service team, which can reasonably match equipment according to your site and provide one-stop service, from site selection to post-opening operation and management, there are complete solutions.

Our rich industry experience will be directly passed on to customers, helping them avoid many common mistakes.