Even if we are playing something like bowling, the presence of F&B on the lanes further facilitates socialization. In fact, we still do that a sense when we have a candle on the dining table. We have since the beginning of mankind when our ancestors gathered around the campfire to eat. The other thing that F&B does in a big way is increases the social experience that takes place. For some, such as Punch Bowl Social and the newly opened Level 257, the majority of their revenue comes from F&B and entertainment revenue is in the minority. Examples include Pinstripes with bowling and bocce. If you look at some of the strong new concepts out there, they also rely very heavily on their food and drink offerings to drive attendance. locations, both with roughly 50% F&B revenues (actually CEC lost its way with its F&B a few years ago, but has recently revamped its menu to become a F&B destination for not only children, but their parents as well). We know destination F&B works and lasts, as we have a number of solid examples of evergreen concepts that have been around over 30 years that use it as an anchor attraction - Dave & Busters, now with 73 locations, and Chuck E. And the show we are referring to is the National Restaurant Association Show.
Yes, that's right, destination F&B is an anchor attraction that has legs. That next BIG Thing is really an old BIG Thing, destination food and beverage. To find it you have to go to an even larger show in Chicago that takes place each May. It's not something you'll find at the IAAPA Show. That next BIG Thing has actually been out there for a very long time. Now there is actually one next BIG Thing out there that most FECs are not seeing. And the only next BIG Thing anchor attraction that has come along in the past decades has been laser tag, but it took more than twenty years to really take off. There are actually only a few anchor attractions that have stood the test of time. So the original returns forecast at the beginning of the FEC's development are never achieved due to the ongoing need to make major capital investments. Of course that can require a major investment. So what they have to do is find new attractions, what they refer to as the next BIG Thing. The attractions, the mix they select gets old and loses its appeal after just a few years. In fact, if you assume it was able to maintain that $400,000 rate for 10 years, its true annual return at ten years in very simplistic terms is only 10%, or $200,000 per year (5 x $400,000 starting in the 6th year divided by 10 years).Ī large majority of FECs are not developed with a mix that can sustain sales for ten years. To get a return, the center would need to be successful for many more years. There hasn't yet been any true return on the $2.0M investment. At that point in time it will only have broken even (setting aside inflation). The center would need to sustain that return for five years to just get the investment back (5 x $400,000 = $2.0M). Let's say for sake of example that a particular FEC that cost $2.0M generates a 20% cash-on-cash return on cost of $400,000 per year during its early years. In fact, some even build future money in their budgets to buy the unknown next BIG Thing.įECs cost a lot of money. Instead, there is this hope for the next BIG Thing. They don't develop their centers with a mix of attractions that has legs, that has a long life. This ongoing pursuit for the next BIG Thing is the pattern of thinking so many FECs fall into during their initial development.
What it says to us is that the things they have don't work and they're looking for something that does. We're continually perplexed about family entertainment center operators' fascination with the search for the next BIG Thing. The next generation of credit card payment technologyĮvery year after the November IAAPA Show in Orlando, FL, we get inquiries about what we saw there that was new and could be the next BIG Thing.Dairy or no dairy: The various degrees of vegetarianism.Trends with age of marriage, 1st births, childlessness & family size.The trade show everyone should attend, but few do.My FEC is feasible since there's nothing in my town for families to do.Foundations Entertainment University 2.0 adds 12 new topics for July 14-16 Chicago seminar program.
0 kommentar(er)
