Industry

Funworld September 2011

For years, America’s Incredible Pizza Company relied on the traditional redemption counter—and dealt with the stress that sometimes came with it.

“When you get your peak traffic, there’s just no way to stop that line,” explains Robert Snelson, executive vice president of games and attractions of the family entertainment center (FEC) chain, headquartered in Springfield, Missouri.

During these busy times, 100 to 200 people might be waiting for as long as a half hour to collect their plush creatures, branded merchandise, or other assorted redemption items, he says. Frustration often kicked in, and soon, an unfortunate truth became clear: Customers could have had a meal and spent their time enjoying the FEC’s games and attractions, but this hectic, snaking line left a critical last impression of the FEC.

“We were getting dinged on our guest surveys,” Snelson says.

So to change that perception and better facilitate the customers’ experience, the Incredible Pizza Company began converting to a storelike redemption space in its 14 locations. Now guests walk into an enclosed room through a controlled entry and exit point. Merchandise lines the eight-foot-tall slat walls, and several islands dot the interior, each with numerous item-filled bins and shelves. Higher-end products stay under glass or go near the top of the wall. Guests can browse at their leisure and, when ready, check out at the manned counter with merchandise already in hand, just like a regular store.

Some believe this model will be the way of the future.

“As a consumer, there’s no better way of shopping than having it in a retail format,” says Michael Auger, managing partner of the Trifecta Management Group, which operates nine entertainment centers across the United States Four have the store setup and the remainder will eventually transition over.

“From a very young age, people are trained to try things on, touch them, and see how they feel,” he continues. “That shopping aspect is an extremely important part of the redemption experience. The store format delivers on that.”

Easing Stress

Several additional advantages come with this store model. For one, Auger says, it allows employees to more efficiently organize the products: young male teens in one section, teen girls in another, etc. Plus, putting merchandise for little kids closer to the ground at eye and hand level makes it much more enticing. Guests appreciate the orderly system, he says. “You’re not jumping all around to find a product that appeals to your age group.”

A redemption store eases the stress on staff and lowers labor costs, Snelson adds. He needed eight people to get the lines down with the counter; now, only two employees check customers out. Snelson does put another person on the redemption floor during peak times to grab the out-of-reach items and assist customers with any questions.

Since implementing the counters guest survey results have improved, Auger says. However, he struggles to quantify if guests increase spending as a result of the new system. “That’s difficult to measure, but by default, if you have a better experience, you’re going to frequent a place more often,” he says. “That’s the key piece.”

Things to Consider

While the store model could be the right solution for larger FECs with higher volume, George McAuliffe still generally recommends the traditional counter for those venues with relatively limited space and strong volume. The room occupies a larger footprint than the counter and might cut into an FEC’s total number of games, he notes.

“We’ve seen owners get hurt by making the wrong choice,” says McAuliffe, president of Pinnacle Entertainment Advisors by Redemption Plus, in Lenexa, Kansas. “We want to fit the style to what is appropriate for the room.”

His consulting company helps FECs set up game rooms, implement redemption management systems, and build redemption counters/stores. Counters remain a valid choice. “They’re not outdated or obsolete,” he says.

For those FECs that do opt for the store, another important consideration is its location—McAuliffe recommends as close as possible to the front so it stands out. Also, the store should be near the games to help avoid any sort of disconnect between the two.

Auger’s stores, although enclosed, feature two half walls to enhance the wow factor and the views. “It gives the guest a clear vision of what’s inside, and, hopefully it reduces any apprehension of what might look like a retail trap,” he says.

One final important point: Auger and Snelson have noticed a slight uptick in redemption theft with the store model. Some ways to avoid any over-the-top pilfering include a controlled entry/exit point where guests pass by the counter and must go through a turnstile. Other helpful prevention methods include a roving staffer, especially during busy hours; expensive items placed in locked cases or out of easy reach; concave mirrors in the corners; and video surveillance.

“It’s the cost of doing business, but it’s outweighed by the power of the redemption room,” McAuliffe says.

Contact Contributing Editor Mike Bederka at mbederka@IAAPA.org.