3 Simple Ways to Scale Your Arcade Business

Think back to when you started your business. Did you ever feel the conditions were ever perfect to take the leap? Probably not.  

Sometimes, the best things happen at the worst possible times. Whether it’s starting your arcade business after you’ve been laid off, or a pandemic that forces you to bounce back better, external events often put you on a better path.   

When it comes to scaling your arcade business, timing is everything. Rest assured, it will happen for the right reasons—like a surge in demand combined with staff shortages.  

But what does “scaling your business” even mean?  

Imagine getting a bus full of people coming into your center at once on a busy Friday night when you only have one cash register. Your staff is pulling their hair out, and guests are getting impatient from the long wait times. “We’re never coming back here again” is murmured by a few guests, and the negative online reviews start pouring in.  

Now picture getting a busload of customers to your center with multiple self-service payment kiosks throughout your arcade. Your guests can purchase and reload game cards using cash, debit/credit cards, and even mobile phones. You and your staff give each other high fives for a great night for delivering a great customer experience.  

Scaling your business means you can handle an increase in sales, work, or output without suffering in other areas of your business—like customer service. Every center competes on the customer experience today, so you’re in a scale-or-fail situation.  

Now that we are on the same page with what scaling your business means and why you need it, here are three simple ways to do it:  

1. Lean into Self-Service Technologies 

Humans are creatures of habit, and we have been conditioned to solve problems whenever we want. Look at technologies we have access to daily: Google, Redbox, self-service car washes, and self-checkout counters at grocery stores.   

When you have customers do the work, you put the costs (in the form of labor) into their court.  

Are you not sold on the prevalence of the OnDemand economy yet? A recent survey indicated that 75% of respondents said self-service is convenient to address customer service issues.  

For FECs and entertainment venues, you have access to online party booking, online reservations, and self-service payment kiosks. When you adopt self-service technologies, you create a win-win situation with you and your customers.  

Take Ryan Ellis, who transitioned from working all day, every day at his arcade, to an utterly unattended business using self-service technologies. Others have made the shift to a hybrid model, where you run an unattended arcade during the slow days of the week.   

Although you are making an initial investment in technology, you’re placing your bets on the fact that the OnDemand economy is here to stay. Plus, you are investing in the future of customer service. 

2. Expand to New Locations 

Going from one location to multiple locations can seem daunting at first. Fortunately, location-based entertainment is a proven business model.  

With innovative concepts like Gravity Active Entertainment in the UK reviving retail spaces, market conditions are ripe for expansion. When you target excellence in an area of inferior performance in your market, you have a solid foundation for successful growth.  

For example, if the only arcade in town is run down with tokens used to play old games, you can introduce a new arcade with a game card system. Knowing your customers will guide you in creating unique concepts with the right mix of attractions and services that they value will give you a competitive edge.  

If you’re considering opening a new location for the first time, be sure to get a robust feasibility study from a consultant with a proven track record. You’ll not only minimize risks; you’ll also increase your chances of getting financing for the project. 

3. Systemize Your Processes 

Let’s follow up on the principle of knowing your customers. Your processes, values, and staff resources must align with your target audience. That’s why a scalable process should be at the forefront of your staff training and development.   

Take selling parties and group events, for example. You can’t have your sales rep make cold calls all day with a canned elevator pitch and expect significant results. Without a clearly defined and sales process, you’re spinning your wheels. 

  

To gain traction, start with a simple structure of identifying good-fit prospects in your area. Your sales rep or team can use LinkedIn to identify businesses in your area. To get emails for people who work for those companies, use a tool like Hunter.io.  

Next, set up Google Alerts to get notifications on any awards they receive or other big company announcements to time your outreach. You can also find other conversation-starters based on trigger events.  

Then, determine the content and sequence to nurture the relationship. As you test and analyze variations of your messaging, you’ll be well on your way to making your process repeatable and predictable.   

When you systemize your processes, you will outperform your competitors. You’ll also scale your party business as you build your sales force.  

Start Scaling Your Business Today   

Zig Ziglar once said, “You don’t build a business, you build people, then people build the business.” When scaling your business, you start by creating a collective mindset of solving problems, improving efficiency, and delivering the best possible customer experience.  

All the high-performing businesses in our industry have that mindset in their organizations. Remember that they started with one location, just like everyone else.  

By leaning into self-service, expanding to new locations, and systemizing processes, you can be the next success story in the industry. We’ll be rooting for you every step of the way.