Family Entertainment Centers : Developers Start Here
By Peter F. Olesen
Page 1, 2, 3
Too often, people start planning a family entertainment facility (herein
referred to as an FEC) with little or no realistic information concerning
the costs involved.
Limited Budgets
We constantly hear from people with projected budgets
under $100,000.00 because they have obtained no realistic information
prior to establishing their concept. There are no good reference books
in the library, to our knowledge, that can realistically prepare newcomers
for the enormity of their projects.
While it is possible to develop a small indoor facility with one or
two budget attractions or a small miniature golf course in a leased location,
for that small a budget, most facilities will cost far more. This is
especially true when the FEC will include multiple attractions.
Developing a Full Attraction Mix
Land costs for facilities can range from several thousand dollars
to more than $500,000.00 an acre depending on the location. The cost
of constructing pre-engineered buildings can easily exceed $40.00
a square foot before equipping them with attractions. Leasing floor
space in existing malls or other buildings for indoor facilities
can range from $2.50 to more than $20.00 a square foot.
In considering the land cost of the site it is important to recognize
the value of location. A more costly site may be far more profitable.
Don’t skimp in the selection of your site. Remember, people don’t
want their trip to an FEC to become an expedition. Ease of finding your
site is a major requirement. Check out the neighborhood. Will your site
be in an attractive well-lit location or in a rundown industrial park
or neighborhood that will drive customers away rather than attract them?
Your site should be well lit from the point of access, in the parking
lot and throughout your entire facility. An important thing to remember
is that you are responsible for security in your parking lot as well
as within your building or in and around your outdoor attractions.
Developing one's own business plan can easily take hundreds of hours
or more. While this is often performed as "sweat-equity", it
still is a cost that should be considered. Don’t forget the costs
of design professionals, marketers, lawyers and other business consultants
that you may require in order to have your house in order when starting
your project.
A large number of outdoor FECs include miniature golf, concession go-karts,
bumper boats and relatively small buildings containing arcade/snack bar/restrooms
and office facilities. These sites may range from 3 ½ to 10 acres
or more.
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