2011: Lessons Learned from the First Quarter

April 1, 2011 No Comments

The first quarter of any year usually sets the tone for the rest of the year and 2011’s first quarter has been quite interesting.  The major events unfolding as this issue of Tourist Attractions & Parks goes to press are the uprisings in North Africa (Libya in particular), the horrible earthquake disaster in Japan and the resulting potential nuclear power plants meltdowns, and several United States being forced to deal with their huge deficits (pension benefits owed in particular.) These events are already having an effect on world and national economic conditions. The word that sums it all up is “uncertainty.”

Gas has already reached $4/gallon is some areas of the United States, and is expected to go higher.  However, the amusement industry is starting to show some life.  Shows held during the first quarter, especially the Amusement Expo, were busy and attended by those who were interested in expanding their businesses. Interest rates are still low and great financing and leasing deals are available industry wide. The last nine FECs that my company (Frank) opened over the past five months are doing fantastic and above projections. These facilities are something new and are quickly capturing market share.  The owners (and investors) are happy they jumped in and will reap the benefits through the next several years as their competitors sit back and scratch their heads.

The Food and Amusement Industry

Food is still the sector that the amusement entertainment industry needs to improve on.  Having the Amusement Expo overlap with the Pizza Expo was a great idea. It was evident from those food franchise owners who walked over to the Amusement Expo that they are interested in adding our games and attractions to their businesses, but they are not permitted by their franchisor.  The franchise industry needs to recognize that games and FECs can be an asset to their businesses.  This is very logical to us, so it is evident that we need to take the lead and educate that industry.  Subway has already become a leader in working with the amusement industry. These food franchises spend a lot of money on advertising their brands.  Now, all we need to do is come up with a food-FEC business model that works for both sectors.  Discounting has to be a major part of this model, as our industry is the best at offering birthday party and group discount packages.  Including quality food, a name brand, and great value would provide FECs with a competitive advantage.

The restaurant industry is also concerned about higher gas prices.  In the last quarter, casual dining was up but they also need an additional draw to get people out of their homes.  A few of the smaller chains have already embraced the FEC industry and added games and FEC attractions to their business model.  As an example, Ultimate California Pizza, a chain of 17 pizza restaurants in and around Myrtle Beach, N.C., has added a full FEC component to one of their pizza restaurants that has proven over the past year to be very successful. They have added 50 games, mini-bowling, Lazer Frenzy, birthday party rooms, a full bar, and a takeout/delivery pizza service (on a revenue-share basis with Alpha-Omega Amusements.)

Fast food is also taking a look at our industry because soda has become the number one new target, as the anti sugar/calories groups go after this sector. Low calorie meals are now in fashion once again.  For example, Olive Garden/ Red Lobster’s owner came out with “Season 52” (upscale with piano bar) where every item is less than 500 calories.  California Pizza Kitchen now puts the number of calories on every menu item.  “Gluten free” is now even being offered at baseball games.

Getting back to the amusement entertainment industry, FEC owners and other industry sector owners (bowling, skating, laser tag and waterpark,) should be asking questions such as, “Would I eat at my facility?”  “Would I take my family to eat at my facility?” If the answer to either is “no,” take a look at how well Disney is at food. They offer good food with good service even though they have a captive market. They strive to excel at every aspect of offering a positive guest experience.

Overall, what we have learned from the first quarter is that food, in combination with redemption and merchandise dispensing games, makes a powerful combination.  All sectors of the out-of-home leisure industry can take advantage of this. Regional amusement parks are already leading the way and there is much we can learn from the park industry in this area.  Zoos, aquariums and children’s museums are also slowly moving in this direction.  Another question our industry should be asking is, “What industry is going to be more aggressive in pursuing the other?”  History shows that our industry rarely takes the lead when it comes to looking for new markets. Perhaps now is the time for our industry to get aggressive and take action to self-promote itself? –

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Sponsors

Penny Press

Penny souvenir machine, great for parks, FECs, bowling and skating centers, museums and tourist attractions.

Water Wars (T&D Enterprises of Brainerd)

Water Wars water balloon game, portable or startionary.

Wisdom Industries, Ltd.

Amusement ride manufacturer, new and used rides.

Amusement Entertainment Management (AEM)

Premier entertainment consultants.

Poly Products

Tables, benches and related products. Green products for a green world.

Master Pitching Machine

Batting cages and pitching machines.

Rio Syrup

Over 250 flavors, syrups and concentrates for shaved ice, sno cones, shushes, food colors. Now featuring Hawaiian Flower Cups.

Gerber Manufacturing, Ltd.

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Knight Equipment

Drive cables for ferris wheels, Tilt-A-Whirls, Rock-O-Planes and many others.

Berk Paper & Supply

Concession supplies.

Namco

Namco America is a premier manufacturer of coin-op arcade attractions, ranging from the hottest titles like Crazy Typhoon and Jumpin’ Jackpot to classic game-room experiences such as the Pac-Man 25th Anniversary upright that features Pac-Man, Ms. Pac-Man and Galaga. Specialized pieces such as Wonka Sweetland and Flamin Finger are favorites too! For arcade gaming fun, Namco America is your answer.

Mahoning Valley Mfg.

A complete line of Imperial strollers, wagons and safari utility vehicles.

National Rock & Sculpture

Dedicated to the conceptual design and development of themed environments.

Lil Orbits Inc.

Food equipment, donut machines and vendor carts.

Rides-4-U, INC.

New and used rides, kiddie, family, major and thrill.

Jane Farrell Turf and Carpets, Inc.

Commercial carpet, printed and decorative patterns, loop and cut-pile construction. Wall coverings in fluorescents, Class A fire rated. Colored turf, both traditional and neon colors.

Enchanted Castle Studios

Fiberglass statuary and figures for restaurants, mini-golf, theme parks and other attractions.

Xtreme Inflatables

Repair and service for all inflatable products.

Kay Park Recreations Corp.

Picnic tables, grills, park benches, planters, trash containers and more.

International Special Events (ISERA)

Risk purchasing group, a better way to purchase liability insurance, specializing in inflatables and much more.

Ride Development Corp.

Electric floor, gas and battery-powered bumper cars.

Broaster Co., The

Food programs and food service equipment.

Perfect Fry

Innovative and simple-to-operate countertop deep fryer Perfect Fryers.

European Body Arts

Airbrushed temporary tattoo products and systems.

Sureshot Redemption

One-stop source for prize redemption counters at entertainment centers.

Lazer Runner

Laser Tag Systems

Nieco Corp

Nieco automatic broilers.

Hoffman Mint

Tokens, medals, coins and key tags.

Richie\’s Italian Ice

Italian Ice Kiosks and Carts

American Changer

Bill and coin dispensers and counters, ticket machines and more.

Beckman Insurance Agency

Amusement attractions insurance.

Omega Carpets

Printed carpeting for all your facility needs.

Tokens Direct

A wide variety of tokens.

Gould Manufacturing, Ltd.

Concession trailers and Antique, Jeep and Grand Prix auto rides.

Aquaventronics

Research and development of interactive water games for use in the commercial amusement industry.

Money Tree – ATM

ATM machines.

Klopp International, Inc. (Playmeter)

Quality coin counters and sorters.

Weldon, Williams & Lick

Admission systems and wristband ticketing.

Friedman Group Ins.

Insurance for amusement devices.

Deltronic Labs Inc.

Ticket dispensers.

Birthday University

Concept development, training and birthday party touring seminars.

Precision Dynamics (PDC)

Wristbands with no hidden costs, Radio Frequency Identification (RFID) Wristband System.

Lakeshore Merchandise (Smart Vending)

Premier vending supply for all of your vending equipment and supply needs.

R&R Creative Amusement Design

Designers of unique themed parks, attractions and environments for the entertainment business.

Flagship Carpet

Custom carpets and rugs.

Chestnut Identity Apparel

Uniform supply, embroidered apparel and flag manufacturing.

Sippers By Design

Design and manufacture of specialty custom-shaped drink containers.

Challenger Industries

Sports surfaces, carpets and mini-golf surfaces.

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