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

Klopp International, Inc. (Playmeter)

Quality coin counters and sorters.

Lazer Runner

Laser Tag Systems

Flagship Carpet

Custom carpets and rugs.

S&S Worldwide

Large Park amusement rides.

Hoffman Mint

Tokens, medals, coins and key tags.

Max Flight

Manufactures interactive virtual reality motion-platform game systems including networkable flight and roller coaster simulators.

A'maze Ventures, Inc.

Mazes for every location, new and used.

Tarobots

Boxerjocks robotic boxing amusement ride game attraction.

Thomco Insurance (Fun Pro)

Fun Pro is an insurance program especially designed for party planners and party rental businesses.

Martin Professionals

A lighting supplier of choice for the entertainment industry.

Tube Pro

Waterpark tubes.

Formula K Raceways

Go-karts, kiddie cars and bumper boats, go-kart parts and tires.

Deltronic Labs Inc.

Ticket dispensers.

Davis & Davis, Inc.

Planning consultants for wet/dry attractions, mini-golf, go-kart tracks and laser arenas.

Comstock - Castle Stove

Commercial cooking equipment.

Cost of Wisconson

Creators of simulated environments, duplicate structures, sculpted figures, exhibits, water features, mini-golf and more.

Lil Orbits Inc.

Food equipment, donut machines and vendor carts.

Embed

Provides innovative IT products and services with a primary focus on card-based solutions and database applications for the leisure and retail industries.

SnowMasters

Evaporative snow systems.

Spectrum Sports

Climbing walls, ropes courses, go-karts and more.

Birthday University

Concept development, training and birthday party touring seminars.

Castle Golf, Inc.

Planning, design and construction of miniature golf courses and family fun parks.

International Special Events (ISERA)

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

European Body Arts

Airbrushed temporary tattoo products and systems.

Money Tree - ATM

ATM machines.

See Coast Manufacturing Co., Inc.

Coin-operated binoculars and telescopes.

Rio Syrup

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

Subway

Fresh food and sandwich options.

CFX Composite & Effects

Special effects make-up and prosthetics

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.

Gold Medal Products Co.

Concession equipment, foods and beverages, popcorn, pretzels and snack foods.

Bulbtronics

A premier source for lamps, LEDs, batteries and lighting-related and electrical products.

Northeast Insurance (NIC)

Insurance programs.

Precision Dynamics (PDC)

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

Broaster Co., The

Food programs and food service equipment.

Wells Fargo

Commercial insurance for inflatables and event planners.

Adventure Glass

Unique paddleboats.

Mahoning Valley Mfg.

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

American Changer

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

Store on Wheels

Importer and distributor of quality toys, lighting and novelties. Cater to the amusement, retail and entertainment industries.

Friedman Group Ins.

Insurance for amusement devices.

Family Fun Corp.

Waterpark walls for rivers, bumper boat and splash down pools.

Adventure Golf

Miniature golf courses, consultants, architecture and design.

Poly Products

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

Weldon, Williams & Lick

Admission systems and wristband ticketing.

Richie's Italian Ice

Italian Ice Kiosks and Carts

Soft Play

Leader in designing, manufacturing and installing soft contained playground equipment.

Brunswick Bowling

Entertainment bowling center developer and manufacturer of bowling equipment and entertainment products.

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