Funworld October 2008

Keeping Up Appearances

Refreshing an FEC is crucial to remaining competitive
by Mike Bederka

EVOLVE OR DIE.

It sounds harsh, but if your family entertainment center hasn’t even changed its paint color since the early ’90s, you could be in trouble. “A lot of times I find that operators wait a bit too long to upgrade their facilities,” says Jerry Merola, chief financial officer of the East Brunswick, New Jersey-based Amusement Entertainment Management LLC. “It starts to become stale in the eyes of the patron. Staying at the status quo can be very dangerous.”

Regular guests may quickly tire of the same old thing, agrees Manas Ganguly, management trainee at Funcity Oasis LLC, in Dubai, United Arab Emirates. “So redesigning often helps to retain customers as well as gain new ones,” says Ganguly, whose facility recently created a teen area. “Even small changes like reallocating places form a chines do enhance revenue.” From added attractions, to different motifs, to full-blown expansion, FECs have numerous ways to stay with the times and keep their customers happy and spending money.

The Road Map
Any successful redesign begins with a master plan, experts believe.

“You need a roadmap or you’re going to have a hodgepodge of stuff,” says Doug Wilkerson, a principal owner with Dynamic Designs and Architecture Inc., headquartered in Birmingham, Michigan. A professional firm can help to make sure all the FEC’s elements blend together, and with the owners and operators they can determine the facility’s future look.

Some projects will take place immediately; other changes can follow their completion, he says. “Over the five-year period, you’ve kept things fresh,” says Wilkerson, who has worked with FECs for two decades. “Also, you can spread out the spending over time. There’s a certain minimum that you really need to do to make a change, but you don’t have to crank out millions.”

Going VIP
FEC owners should consider a warm, upscale feel when they plan to redesign, Wilkerson says. Customers see the wood floors at grocery stores and the leather chairs at movie theaters, so they expect VIP in most venues these days. “The bar has been raised in every industry,” he says. Plus, a classier appearance can attract older kids and adults, Wilkerson says. “You’ll draw in whole new demographics that never would have walked in your doors before.”

He doesn’t oppose FEC theming (pirates, space, etc.), but he believes it should only be done selectively—say just in the redemption or kiddie areas. Merola also suggests avoiding theme overload. Instead, go with a more timeless look, like “a four-color palate coming together with a variety of textures.”

“It creates an environment,” he says. “This way, the attractions are the things that stand out.”

Money-Minded
To further distinguish your FEC from the competition, you should constantly rotate the entertainment choices, Merola notes. Attractions last three or four years before becoming yesterday’s news. For example, switch out the laser tag for glowin- the-dark mini-golf. “The idea here is to use the same space but to completely modify it—change its appearance and change its use,” he says.

An inflatable can be another big-impact move that doesn’t involve knocking down walls, says Rich Sanfilippo, owner of Sam’s Fun City in Pensacola, Florida. The attraction draws in younger children and helps with the birthday business. Most inflatables go for less than $20,000, he says, which is a bargain considering two or three popular video games run about the same amount. “Think of low-cost things that add a whole new element to what people see when they come to your facility,” advises Sanfilippo, who also just built a buffet restaurant and plans to expand his arcade.

Explain the Dust
FECs, regardless of the scope of their projects, probably will have to stay open during the renovations. In a tight economy, closing down for months, weeks, or even a few days, can kill profits and scare away customers for good. But don’t think of the construction as an inconvenience.Use it as an opportunity to build excitement about a new attraction or addition.

Wilkerson provides his clients with renderings of any planned project to approve. Take those pictures, prominently put them on display, and with signage, announce something like, “Coming soon: state-of-the-art laser tag.” “You let your guests be part of the experience, ”Merola says. “It helps to keep them tied to the business.”

Some FEC owners believe that just because they spent a lot of money on new projects, they’re guaranteed to bring in a lot of revenue. Not so, Sanfilippo warns. “It doesn’t have to be a major investment,” he says, “but it has to be promoted and advertised.”