Monday, February 13, 2012

What are some pros and cons on owning your owning arcade?

A arcade like chucky e cheese, you know where you have alot of games and people win tickets.What are some pros and cons on owning your owning arcade?
Cons:

There are major chains like Chuckie Cheese and Dave and Busters you are in competition with that have very high advertising budgets.

With an all cash business the chances of employee theft are extremely high.

With an all cash business the chances of robbery are extremely high.

You would need a large commercial space to hold this type of business which will translate to very steep rent.

Most likely a seasonal business especially in northern states, it would be hard to have year round revenues that where consistent.

High liability potential for lawsuits from stupidity of your patrons.

It is easy for someone else to copy your concept and difficult to distinguish yourself in the industry.

Pros:

All cash business

High upfront costs but after several years that may mean very low additional investments

With recession people are sticking closer to home for entertainment

Could potentially expand business to include food sales to generate additional revenueWhat are some pros and cons on owning your owning arcade?
Young people are not easy to deal with. All cash business is ok.

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