Are you tired of the 9-to-5 grind and looking for a fun business opportunity that makes money? Imagine a place where families come together to create cherished memories, kids have a blast, and parents get a break. Now what if I told you that starting a Family Entertainment Center (FEC) could be your ticket to not only a profitable business but also a business that brings joy to thousands of families? Now, let’s dig into what a Family Entertainment Center really is. Once you understand what an FEC is, the industry trends, the different types of centers, and the steps to start one, you’ll be armed with the information to get started on this exciting journey.
What’s a Family Entertainment Center?
A Family Entertainment Center (FEC) is an indoor facility that provides a multitude of fun things to do for families and people of all ages. These facilities typically include indoor playgrounds, trampoline parks, ninja courses, arcade games, laser tag, mini-golf, bowling, and food and beverage options. While not as large as a major amusement park, FECs are designed to provide a fun and exciting place where families can have a great time. They also host birthday parties, corporate events, and other gatherings, making them great places for fun and socializing. The main purpose of an FEC is to offer a safe and fun place for family activities that appeal to a wide variety of interests and age groups, building community and bringing families together.
Family Entertainment Center (FEC) Industry Trends 2024
The global Family Entertainment Center (FEC) market is expected to grow significantly and is projected to reach an estimated value of $88.7 billion by 2032. This growth is expected to happen at a compound annual growth rate (CAGR) of 11.5% from 2023 (source: Global Market Insights Inc., Allied Market Research). Key reasons for this growth include:
1. People are spending more money on fun activities to do.
2. More people are investing in building new FECs.
3. People want to have more fun doing things that are cooler and more immersive.
Also, new technologies such as virtual reality (VR) and augmented reality (AR) are making FECs even more fun and interactive for people. The industry is also growing because more FECs are creating themed and edutainment activities, which attract more people and help the industry continue to grow.
What types of activities are commonly found in FECs?
There are different types of FECs, each with its own unique attractions and experiences:
- Children’s Entertainment Centers: These are focused on providing recreational activities specifically for kids who are 12 and under, featuring attractions such as soft play areas, kiddie rides, and themed zones.
- Trampoline Parks: This is one of the newest evolutions in FECs, providing a way to exercise, improve balance, and focus.
- Multi-Attraction Entertainment Centers: These combine multiple recreational activities and games, including mini-golf, go-karts, arcade games, and areas designated for birthday parties.
- Children’s Museums: With interactive designs, children’s museums allow kids to explore and learn in destination-based centers.
- Arcades: This timeless FEC provides an environment filled with games that encourage social interaction and active play for the entire family.
- Inflatable Centers: These are among the easiest structures to add to any indoor or outdoor environment, offering obstacle courses and games within a creative play space.
- Movie Theaters (Cinema Entertainment Centers): These combine the traditional movie-going experience with additional entertainment options, like arcades and dining areas.
- Bowling Alleys (Bowling Entertainment Centers): These offer bowling along with other attractions, such as laser tag, arcade games, and dining.
Who is the FEC’s target audience?
Family entertainment centers cater to a wide range of age groups, from young children to teenagers and adults. They’re designed to provide entertainment options for the entire family, ensuring that everyone finds something fun to do. The target audience for FECs includes:
- Kids 8-14 and Their Parents: This group is a primary focus, as kids in this age group and their parents are huge consumers of FEC services. The large population of kids under 14 in places like the U.S. and Canada is driving market growth.
- Families with Young Kids: FECs are a destination for families looking for safe, fun activities for their kids, making them a great place for family outings and birthday parties.
- Millennials (Young adults just out of college to mid-30s) and Gen Z (Junior high to early college age): These generations value experiences over stuff and are attracted to unique, social, immersive entertainment options. Millennials specifically look for things that let them be social, like escape rooms and bowling.
- Gen X (Late 30s to mid-50s) and Baby Boomers: Gen Xers are the parents who bring their kids to FECs, looking for a one-stop-shop for family entertainment. Baby Boomers, who typically have more money, may also visit FECs with their grandkids and like classic attractions like mini-golf and bowling.
- Sports Fans and People Looking for Active Experiences: FECs with things like obstacle courses, ninja warrior course, trampoline parks, parkour, and climbing walls are great for people who want to do something physical and adventurous.
- Corporate Groups and Social Outings: FECs are also popular for company events, team-building events, and social outings because they have a variety of things to do that are good for groups.
10 Steps to Starting a Family Entertainment Center Business
68% of parents have visited family entertainment attractions in recent years, making the industry more viable than ever. If you’re passionate and driven to enter this exciting market, this step-by-step guide will teach you how to start a family entertainment center.
Step 1. Identify Business Goal & Business Type
Before you start your FEC business, you need to know your vision. Other than money, what else do you want to get out of starting an FEC business? Do you want the challenge of building a successful business? Do you want to create a place for families and friends to have fun for years to come? Do you want to be at the center of fun and make money?
Your goal is often tied closely to your passion and motivation. It will impact every business and operational decision you make. You need to be clear on why you want to start an FEC and be in the business of fun.
The heart and soul of your business will be the biggest driver of loyal guests and customer returns. You must know: What makes your business unique? Why do people come to your fun family centers, not others? It is the core of your company – the “why” you are in business- will inspire loyalty and returns.
Having a strong business goal will help you envision what type of customers you want to attract, what type of facility will get those customers to participate, and what type of experience you want them to enjoy.
The Harvard Business Review says that before a company can charge admission or put a price on the experience it offers, it must design, market, and deliver the experience excellently.
Step 2. Determine Target Customers
Family members have different interests and are entertained for different reasons. Will your FEC focus on entertaining the whole family, or children only, or for adults and teens? Once you have identified your audience, it will give you ideas on what your FEC needs when it comes to theme, hardware and equipment, activities to add to the venue, and so on.
Maybe you don’t know how to define your target customers yet. By analyzing the market population in the area where you intend to open the family fun centers business, you can better determine the project’s profitability.
Market population analysis factors:
Age Groups:
FECs typically cater to a wide range of age groups, including children (0-9 years), pre-teens (9-12 years), teenagers (12-18 years), young adults (18-24 years), and adults (24+ years). Understanding the age distribution within the target area is crucial, as different age groups have varying preferences and spending behaviors.
Education Levels:
Education can influence consumer preferences and spending habits. Higher education levels may correlate with a preference for more educational or developmental content in entertainment options
Drive-Time Analysis:
People will generally drive 15-20 minutes to get to your place in an urban area and 45-60 minutes in a rural area. This drive-time radius defines your primary market area.
Figure out how much that will be in revenue. Just to get a feel for it, take the IAAPA statistics they give you on attendance:
Step 3. Make a Feasibility Study
You need to do a feasibility study for your FEC to find out if it’s a good idea, if it’s right, if it’s profitable, if it’s fundable, if it’s in the right place, if it’s at the right time. It’s also going to help you identify the risks and rewards of your FEC idea: whether you should do this now or put it off for a while.
Figure out how much that will be in revenue. Just to get a feel for it, take the IAAPA statistics they give you on attendance:
What does a market feasibility study involve?
- Site selection & characteristics
- Competition analysis (direct and indirect competitors)
- Market area demographic analysis (including sources of foot traffic or tourist traffic)
- Financial forecasts of income and expenses
- Source of income (school, commercial area, residential area, etc.)
- Facility day capacity and size requirements
- Cost estimation
- Return on Investment (ROI) Prediction
- Breakeven and sensitivity analysis
Step 4. Secure Capital & Funding
Now it’s time for the big one — Get Money & Funding for your FEC business. Besides your own money, you can also get money through the following ways:
- Investors: A lot of business owners can get venture capital from investors in exchange for equity in the FEC. This way protects your personal finances at the expense of giving up 100% ownership.
- A small business loan: With this option, you keep 100% control and ownership of your FEC without using your money. When you talk to the bank, bring your business plan or the things you’re going to do.
To get the money, you need a business proposal that includes the type of FEC you’re building, where you’re building it, your market feasibility study, your financial feasibility study, and your analysis. Remember, feasibility studies are written and done for the people who might give you money.
Step 5. Find Expert Suppliers
Next, you need to work with people who know the business, starting with finding a supplier. Most experienced suppliers have their own design team that knows what layouts and elements will work best for your budget and space. Plus, they can tell you how to get permits and build your FEC right the first time.
The theme of your FEC should match the “why” of your business, the kind of people you think are going to come, the number of people you think are going to come, where it is, and the things you’re going to do there. Urban Air Adventure Park started as a trampoline park, with moms as their customers and kids as their users. Because the owner is a data junkie, Urban Air used their data to become a technology-driven, completely innovative experience – complete with cool yet affordable food and beverage offerings, themes, and immersive attractions.
Step 6. Get Licenses & Permits
Once you have your money and your permits, you can start building your FEC from the ground up. Whenever you run a business, there is always a lot of paperwork, including specific licenses and permits you need to operate an FEC. These vary based on where you are, what kind of FEC you have, and how big it is, among other things.
- General Business License
- Doing Business As (DBA) License
- Employer Identification Number (EIN)
- Zoning Permit
- Child Care License
- Health Department Permit
- Fire Department Permit
For more details and the application process, read our blog on “What Permits Do You Need to Start an Indoor Playground Business”
Step 7. Begin Construction
Now it’s time to start building your FEC. The most important thing you can do at this point is simply be there. You are the boss and need to be the person who gives the final say. After all, this is your passion project! No one knows your vision better than you, so your people are going to depend on you and what you know.
Step 8. Hire Your First Team
Hiring your first team for a new business can make or break the success of that business. The number of people you need to run an FEC can vary from place to place. It will also vary based on the size and type of FEC you have.
In the 2020 FEC Benchmark Series by IAAPA, employee payroll was found to be the biggest expense for FECs. This is why you need to make sure you invest in the right people. People are an asset; the wrong people are a liability. At the same time, it’s a lot better to keep a great team than it is to keep hiring, training, and developing new people.
Step 9. Start Branding & Marketing the Business
As with any new business, creating the brand and marketing plan is critical to making your FEC top of mind for your customers. You can do this in a variety of ways, including:
- Create logos for your new family fun center to make it look more professional.
- Develop a great website with pictures, descriptions, prices, and an easy way to book online.
- Set up social media accounts and put out content related to the FEC, including posting pictures, videos, and updates about your park.
- Use online ads and social media ads to reach specific groups of people.
- Work with travel agents, social media influencers, and bloggers to get the word out about your FEC.
- Put flyers or posters around the indoor play area to attract people who live nearby.
- Sell branded items like grip socks, T-shirts, wristbands, purses, and water bottles with the logo of your park on them.
Step 10. Have a Grand Opening!
Now that the business is ready, it’s time to open the doors. The grand opening needs to be a statement of what your business promises. Here’s a quick checklist of what you need to be ready for this day:
FEC Grand Opening Checklist
- Operations plan - Based on anticipated foot traffic, create a manpower strategy for maximum efficiency.
- Plan the program – Keep it short, ideally around 10 minutes. Include a ribbon cutting. Prepare short speeches for key people and special guests.
- Food & beverage – Some examples of food & beverage offerings you can do for opening promotions are free dinner with every game card, free round of drinks with the purchase of any two appetizers, or free salad bar with dinner. Be creative with your offer, but remember the deal needs to be simple enough for people to come to your facility and spend money.
- Arrange for photography and media coverage – If you want to, hire a professional photographer. Send press releases to local media at least 2 weeks before the event.
Cost to Starting a Family Entertainment Center Business
1. Real Estate
Buying or leasing your space will be one of your biggest costs. The cost will change based on location, size of the space, lease terms & local market conditions.
To give you an idea, here are some average rental costs per square foot fordifferent regions in the USA:
- Urban Areas: $30-$100+ per sq ft per year.
- Suburban Areas: $15-$30 per sq ft per year.
- Rural Areas: $5-$15 per sq ft per year.
Example Calculations
1. Urban Area (High Traffic, e.g., New York City):
- Size: 10,000 sq.ft
- Cost: $50 per sq ft per year
- Annual Rent: 10,000 sq ft * $50/sq ft = $500,000
2. Suburban Area (e.g., Suburban Illinois):
- Size: 15,000 sq.ft
- Cost: $20 per sq ft per year
- Annual Rent: 15,000 sq ft * $20/sq ft = $300,000
3. Rural Area (e.g., Rural Texas):
- Size: 20,000 sq.ft
- Cost: $10 per sq ft per year
- Annual Rent: 20,000 sq ft * $10/sq ft = $200,000
2. Construction and Renovation
Building or renovating your building to make it safe and do the things you want to do can cost a lot of money. Make sure you budget for structural changes, safety features, and making it look pretty.
1.New Construction:
- Basic Building Costs:
- Commercial Space: $100 to $300 per sq ft
- Specialized Structures: Costs can rise if you require unique features like large open spaces, high ceilings, or specific structural requirements.
1.Renovation of Existing Space:
- Basic Renovation Costs: $50 to $150 per sq ft depending on the extent of renovation.
3. Equipment
The cost of buying indoor playground equipment, ninja warrior courses, arcade games, bowling lanes, laser tag equipment, trampolines, go-karts, and other attractions can add up fast. Make sure you invest in good equipment that will last and be safe.
4. Technology
You need to invest in a good point-of-sale (POS) system, security systems, and other technology. These systems will help you run your place better, keep it safe, and take care of your customers.
How Important is Food Service in FECs?
Food and beverage is becoming a bigger deal in FECs. Many centers are expanding their food offerings to attract families and make more money. Having different food options, from quick snacks to full meals, can make your customers happier and make them stay longer. Plus, having a place for parents to sit and eat while their kids play is a big deal.
Emerging Trends in the FEC Industry
1. Immersive and Interactive Experiences
- Virtual Reality (VR) and Augmented Reality (AR): These technologies are revolutionizing the FEC industry by offering highly immersive and interactive experiences. VR and AR attractions are becoming increasingly popular and can set your FEC apart from competitors.
- Interactive Attractions: Adding interactive elements to traditional attractions, like games you can touch and interactive displays, can make the experience more fun for your customers.
2. Technological Innovations
- AI-Driven Customer Service: Using artificial intelligence (AI) to help with customer service can make your business run better and make your customers feel more special.
- Smart Playgrounds: These play areas are more advanced and have sensors and interactive things that make the play experience more fun and interesting.
3. Themed Entertainment Nights
- Pop-Up Events: Having special nights or pop-up events can bring in new people and make your place exciting. These can be anything from holiday parties to having special guests or live music.
4. Sustainability Initiatives
- Green Technologies: FECs are doing things like using energy-efficient lighting, solar panels, and water recycling systems. These things help the environment and can make people who care about the environment like you more.
5. Educational and Edutainment Activities
- STEM-Based Activities: Adding science, technology, engineering, and math (STEM) activities to what you offer will attract families who want their kids to learn while they’re having fun. These activities are both fun and educational and help kids learn to love learning.
How Do FECs Ensure Safety for Visitors?
FECs usually do a bunch of stuff to keep people safe. These things include:
- Regular Equipment Maintenance: Routine inspections and maintenance of all equipment to ensure it is safe and operational.
- Staff Training: Comprehensive training programs for staff on safety protocols, emergency procedures, and customer service.
- Clear Safety Guidelines: Posting clear safety guidelines for each attraction and ensuring that visitors are aware of and follow these rules.
- Supervision of Play Areas: Assigning staff to supervise play areas and assist guests as needed.
- Security Personnel: Having security personnel on-site to handle any incidents and ensure the safety of visitors.
Conclusion
If you’re thinking about starting a family entertainment center (FEC), I have good news and bad news. The good news is that owning and operating an FEC can be a lot of fun and very rewarding. The bad news is that it can also be a lot of work and very challenging. By being aware of certain things, staying in touch with what’s going on in the industry and focusing on safety and customer satisfaction, you can create a successful and thriving FEC. This book will give you a step-by-step roadmap to help you get from where you are now to the grand opening of your FEC. If you follow the plan and stay with it, you can create a place where families come to have fun and make memories.
Are you still looking for a supplier? We’re the experts when it comes to family entertainment. Our designs are bold, colorful and state-of-the-art so they quickly catch attention and spark intrigue. As a leader in indoor playground equipment, we are committed to providing exceptional customer service, quality materials and unique designs to help you drive your business. Contact our design specialists to start planning your family entertainment center today.
