THANK YOU TO OUR SPONSORS
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1 THANK YOU TO OUR SPONSORS GOLD SPONSOR SILVER SPONSOR
2 Creating a Profitable Future for your FEC Moderator: Beth Standlee, President, TrainerTainment L.L.C. November 15, 2016
3 Profile of Spare Time Texas Centers in Temple & Pflugerville (central Texas) Opened April, 2013 & December, 2015 Speaker: Rick Heim, Managing Partner, Spare Time Texas
4 Spare Time Texas 41,000 square feet lanes, games Laser Maze Winner s Corner prize store 26 player multi-level tag arena Full service dining/bar 2,200 square feet of event space Guest profile
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10 Sharpening our Saw Measure what matters Measure consistently Compare results to benchmarks Last week Last year Similar businesses Communicate results quickly to all stakeholders
11 What s Measured Sales: open to 5 pm; 5 pm to close Sales by category Labor hours, labor costs by category Productivity (Sales per labor hour) Shoe rental to casual bowling percentage Manager comps Draft beer yield Check averages Guest satisfaction Staff satisfaction Staff turnover Arcade (redemption & merchandisers) payouts
12 Measurement Tools POS/card systems (my micros) Shift notes (management communication) Proprietary weekly summary & dashboard Proprietary reconciliation reports Customized secret shopper reports Event surveys/online reviews Top 20 meetings/exit interviews Sales systems/event management reports JOLT operations management app FEC group benchmarks
13 $14, $12, Department Revenues $12, $13, $11, $10, $9, $8, Event Sales $8, $10, $8, $6, $4, $2, $0.00 $6, $4, Sum of STT $3, $2, $3, Sum of STP $2, $1, $1, Bar Bowling Food Games Laser Tag N/A Bev Shoes $9, $8, $7, $6, $5, $4, Sum of STT Sum of STP Department Hours $3, Bar Hours Bowling Hours Food Hours Games Hours Management Hrs Sales Hours Sum of STT Sum of STP $2, $1, $0.00 Event Sales Dashboard Example
14 Protecting/Predicting the BIZ Focus on the SALES GROWTH Focus on FRESHNESS Improve/Increase CLIENT RELATIONSHIPS Invest in PEOPLE DEVELOPMENT Adapt to/foresee MARKET CHANGES Maintain QUALITY
15 Romp n Stomp Inflatables and Fun Activity Center and Mobile Events Speaker: Janice Jokkel, CEO/ Founder, Romp N Stomp
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17 Romp n Stomp Inflatable and Fun Activity Center and Mobile Events 12,000 SF facility with a Mezzanine for Parents Lounge Attractions Inflatable Bouncers, Obstacle Courses and Slides Old Fashion Game Room Non- Arcade or Redemption! Eye Beam ( formerly eyeclick ) Virtual Playground Imagination Station Building Blocks Tot Town Café with 84 seating event space
18 Romp n Stomp Inflatable and Fun When did the journey begin? April 2006 Where is Romp n Stomp? 20 minutes south of Cleveland in Medina, OH What make us different? Our STAFF - Training, Training and MORE TRAINING! Recruiting and Training your Staff will allow you to weather the economy, new competition and exceed customer s expectations every time!
19 Understanding the needs of your guests and delivering! Having a recipe for success EVERYONE is SELLING ALL THE TIME! Communication Setting expectation to both your Guests and Team Members Customer Satisfaction Striving for continuously high reviews through social media, in house electronic surveys, after event calls, thank you notes and most importantly manager event touch!
20 Understanding the needs of your guests and delivering! On Line Party Reservations Times have changed! Empower your guests to make the decision when it s convenient for them! Increased business by over 60% Re-evaluate your product offering Listen to the guests commonly requested services. Character Visits upsell and fulfilling a need! Weddings expanding your customer base! Everyone needs to have FUN!
21 How to improve your bottom line! Control labor hours based on the needs of the business Upsell! Increase the average ticket sale in ALL departments Cut waste out of the flow of your business. Involve everyone in the center on being a LEAN environment MOST IMPORTANT..
22 IAAPA Has the Data Let s take a look Speaker: Melissa Teates, CAE, Director, Industry Research and Analysis, International Association of Amusement Parks and Attractions (IAAPA)
23 Operation Data
24 Other Industry Research
25 Wide Range of FEC Types in Report FEC Type in IAAPA FEC Benchmarking Report 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% FEC with Indoor and Outdoor Attractions FEC with Indoor Attractions only Children s Entertainment Center Indoor Playground Skating (ice and/or roller) Center Outdoor Adventure Facility Bowling Center LaserTag Center Inflatable Center Miniature Golf Course Edutainment/Career Sampling Center Go-karting Facility Trampoline Center 5% 3% 2% 2% 2% 2% 2% 1% 1% 0% 7% 32% 42%
26 Most FECs Are Open Year-Around in One Location Number of Locations Operated 6 to 7 2% 8 to 9 1% 10 or more 11% Additionally, 90% of FECs reported being open year-around. 4 to 5 6% Three 7% Two 7% Average Locations: 2.9 One 66%
27 Combination Pricing Strong Except in Latin America Pricing Policy for FEC Combination of pay-one-price & pay-as-you-go 48% Surprised combination is largest % in the U.S. skewing the average? Pay-as-you-go 38% Asia Pacific Europe Latin America North America Pay-one-Price 7% 48% 17% 10% Pay-as-you-go 52% 15% 59% 34% Pay-one-Price 14% Combination of pay-oneprice & pay-as-you-go 41% 36% 24% 55% 0% 20% 40% 60% 2 7
28 FECs Take Advantage of Groups and Parties to Increase Attendance Attendance by Type Average General admission 59% Corporate/Team Building Group Sales Attendance 8% Other Group Sales 10% Season Pass Attendance 8% Discounted admission 8% Birthday Party Attendance 21% Complimentary 4% Other 17% 0-25,000 25,001-50,000 50, , , , , , , , , , ,001-1 million 1 million-1.25 million 1.25 million-1.5 million 1.5 million-2 million 2 million-3 million 3 million 4 million Over 4 million Estimated Annual Attendance 0% 5% 10% 15% 20% 25% 2% 3% 0% 0% 1% 1% 2% 5% 11% 12% 13% 13% 16% Average Annual Attendance: 369,289 21%
29 Arcade Games and F&B Top Revenue Sources Top Revenue Sources for FECs 1 Arcade games 17 Games Skill and Competition 2 Food and Beverages 18 Batting cages 3 Group events Birthday Parties 19 Toddler area 4 Miniature golf 20 Climbing wall 5 Games Redemption 21 Simulator/Motion Theater attractions 6 Go Karts 22 Children s edutainment experiences 7 Laser tag 23 Trampolines 8 Bowling 24 Waterpark attractions 9 Group events Corporate 25 Ziplines/ropes courses 10 Group events Other (Church, School, Scouts, Military) 26 Fundraising events 11 Rides For Families/Older Children 27 Paintball 12 Inflatable attractions 28 Golf driving range 13 Rides For Children 29 Teambuilding events 14 Merchandise Sales 30 Carousel 15 Physical play attractions, ball crawls, rope climbs, slides 31 Parking 16 Bumper boats/other types of boats 32 Sponsorships Anything stand out to you in this list? In the 2011 survey, Food & Beverage was not in the top five.
30 Average Cost of Top Activities in $6 Range Average Charges per Selected Activities Standard Charge Single Go-Kart ride Single round of Miniature Golf Single round of Laser Tag Under $3 11% 6% 4% $3 to $3.99 6% 6% 4% $4 to $4.99 5% 9% 9% $5 to $5.99 9% 14% 15% $6 to $ % 20% 21% $7 to $ % 21% 26% $8 to $8.99 5% 5% 11% $9 to $9.99 4% 13% 2% $10 to $ % 2% 3% $11 or more 2% 4% 5% Average charge $6.42 $6.72 $6.97 Is this more or less than your pricing?
31 Most FECs Estimate their Gross Revenue Under Two Million Estimated Gross Annual Revenue for a FEC 0% 5% 10% 15% 20% 25% Under $24,999 $25,000-$49,999 $50,000-$99,999 $100,000-$249,999 $250,000-$499,999 $500,000-$999,999 $1 million-$1.5 million $1.5 million-$2 million $2 million-$3 million $3 million-$5million $5 million-$10 million More than $10 million 2% 2% 3% 5% 7% 7% 8% 10% 10% 13% 13% 20% Average revenue: $2,559,950
32 Average Spent on Payroll Fairly Consistent except for North America % of Annual Gross Revenue Spent on Payroll Asia Pacific Latin America Europe North America 0-5% 11% 3% 8% 3% 6-10% 11% 6% 13% 7% 11-15% 21% 16% 4% 7% 16-20% 5% 19% 17% 13% 21-25% 5% 22% 21% 20% 26-30% 26% 16% 29% 22% 31-35% 16% 16% 0% 20% 36-40% 0% 0% 4% 4% 41% or more 5% 3% 4% 5% Average 21% 22% 21% 25% Labor cost higher in North America and more variable in Asia Pacific.
33 Most Guest Originate from 10 Miles Away or Less Distance Guests Travel to Visit a FEC 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0-5 miles 44% 6-10 miles miles miles miles miles 6% 9% 11% 17% 31% Average guest traveled 42 miles How many FECs here are getting customers from more than 42 miles away? miles 5% 200+ miles 9%
34 Most Guests Stay Between an Hour and Four Hours Hours a Typical Guest Spends at a FEC Less than 1 hour 3% 1-2 hours 3-4 hours 46% 45% 5-6 hours 4% 7-8 hours 9-10 hours More than 10 hours 0% 1% 1% Average guest spends 2.7 hours at a FEC
35 Social Media IS Top Marketing Method Top Marketing Methods 1 Social media 12 Direct sales (sales reps calling on group customers) 2 Website (yours) 13 Radio advertising 3 Word of mouth 14 Outdoor advertising 4 In Facility promotion/signage/banners 15 Company programs and consignment tickets Direct mail 6 Bounceback coupons given to current customers 17 Television advertising 7 Magazine/Tourism publication advertising 18 Church programs 8 School programs 19 Daycare programs 9 Advertising on websites other than your own 20 Package programs w. other facilities or attractions 10 Daily deal coupon programs (Groupon, Living Social, etc.) 21 Third party retail partner promotions 11 Newspaper advertising 22 Telephone sales/telemarketing In the 2011 survey, Word of mouth was the top marketing method. Social media was not in the top five at all.
36 As Expected Families with Older Children Are the Primary Target Primary Demographic Target for Marketing 0% 10% 20% 30% 40% 50% 60% Families with children 0-9 8% Families with children % Families with children % Teenagers (11-17) 2% YoungAdults (18-24) Adults (Ages 24+) 3% 4% 3 6
37 Research Questions?
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