Gaming Lounge Business Plan Template
If you want to start a gaming lounge business or expand your current gaming lounge business, you need a business plan.
The following Gaming Lounge business plan template gives you the key elements to include in a winning Gaming Lounge business plan.
Sample Gaming Lounge Business Plan Template
Below is a gaming lounge business plan example with each of the key sections to help you write a gaming lounge business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a new gaming lounge located in downtown [Location]. We offer everything needed to create the ultimate gaming experience. With over a dozen wide-screen TVs, two dozen gaming computers, several of the latest gaming consoles, and thousands of games to choose from, you’ll never have a moment of boredom at [Company Name].
We also provide a comforting and welcoming environment, with several comfy couches and chairs, clean facilities, and exquisite food. Once you come to [Company Name], you will never want to leave.
Products Served
[Company Name] aims to offer the best gaming lounge experience in the city. To accomplish this, we’ve stocked our lounge with the best technology and games the industry has to offer. These include:
- A dozen 50″ TVs
- Two dozen gaming PCs
- Several of the best-selling gaming consoles
- Thousands of games
[Company Name] charges a small fee for each game rented. We also provide a full menu of snacks and drinks for additional charges. [Company Name] will also have a small bar that serves gamers over the age of 21.
Customers who wish to frequent the lounge often have the option to sign up for a monthly membership. The membership covers the fees for renting games and gives customers a discount on food and drinks.
Customer Focus
[Company Name] will serve the residents of [Location] and the surrounding areas. The demographics of these customers are as follows:
- 320,721 residents
- Average income of $55,000
- 32% married
- 26% with children under 18
- Median age: 35 years
Management Team
[Company Name] is led and run by [Founder’s Name], who has worked in the industry for [X] years. [Founder’s Name] has managed some of the most popular gaming centers and similar establishments in the region. Throughout his career, he gained an in-depth knowledge of all aspects of the gaming lounge industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the business. His experience, knowledge, and skills will all be invaluable to the company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are very few gaming lounges in the community, despite the demand for these establishments. Additionally, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when it launches.
- Our location is in a high-volume traffic area and will thus be highly convenient to a significant number of passersby.
- The management team has a track record of success in the gaming lounge business.
- The gaming lounge business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is currently seeking $550,000 to launch. Specifically, these funds will be used as follows:
- Lounge design/build: $250,000
- Equipment and machinery: $150,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new gaming lounge located in downtown [Location]. We offer everything needed to create the ultimate gaming experience. With over a dozen wide-screen TVs, two dozen gaming computers, several of the latest gaming consoles, and thousands of games to choose from, you’ll never have a moment of boredom at [Company Name].
We also provide a comforting and welcoming environment, with several comfy couches and chairs, clean facilities, and exquisite food. Once you come to [Company Name], you will never want to leave.
[Company Name] is led and run by [Founder’s Name], who has worked in the industry for [X] years. [Founder’s Name] has managed some of the most popular gaming lounges in the region throughout his career. His time managing these businesses has helped him understand what makes gaming lounges successful as well as what keeps customers coming back. He also gained an in-depth knowledge of all aspects of a gaming lounge business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry. His goal is to utilize this knowledge and skills to build the most popular gaming lounge in [Location].
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation] and found a potential retail location soon after. The business is currently being run from [Founder’s Name]’s home, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.
Since incorporation, the company has achieved the following milestones:
- Found a retail location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Created the initial food and drink menu
- Determined the initial selection of games
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the industry
[Company Name]’s Products/Services
[Company Name] aims to offer the best gaming lounge experience in the city. To accomplish this, we’ve stocked our lounge with the best technology and games the industry has to offer. These include:
- A dozen 50″ TVs
- More than a dozen gaming PCs
- Several of the best-selling gaming consoles
- Thousands of games
[Company Name] charges a small fee for each game rented. We also provide a full menu of snacks and drinks for additional charges. [Company Name] will also have a small bar that serves gamers over the age of 21.
Customers who wish to frequent the lounge often have the option to sign up for a monthly membership. The membership covers the fees for renting games and gives customers a discount on food and drinks.
III. Industry Analysis
The video game market has taken off in recent years. Though people have enjoyed video games for decades, the most noticeable increase in gaming interest was seen during the pandemic. Since everyone was stuck at home, they turned to home-based hobbies to spend their time. One of the most popular options was video games.
Now that the pandemic is over, people are looking for fun ways to gather with people after years of being stuck indoors. Gaming lounges offer this great opportunity as people can continue to enjoy video games but play with others in a comfortable lounge setting.
Gaming lounges and centers have become increasingly popular since the pandemic ended. We expect this trend to continue as the gaming market continues to expand. The gaming market is expected to grow at a compound annual growth rate of 8.94% over the next five years. This substantial growth is expected to positively affect related industries, such as the gaming lounge industry. With such substantial growth in the industry, we are confident that [Company Name] will succeed in the local market.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [Location] and its surrounding areas. Any child or adult that loves video games is welcome to our establishment.
Customer Segmentation
Though we accept everyone who has a love for video games, we will specifically target the following three customer segments:
- Families: Gaming lounges are the perfect establishments for families to enjoy themselves after a long week of school and work. Therefore, we will market the numerous family-friendly games and activities that we offer.
- Adult Gaming Fans: Gaming lounges aren’t just for kids. People of all ages can enjoy playing video games in our lounge. Therefore, we will market to adults as well and keep our lounge open late to accommodate their busy work schedules.
- Groups And Parties: Gaming lounges are the perfect settings for large groups and parties. We will offer the option for large gatherings to rent out the lounge for a private day of gaming fun.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a ten-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Dave & Buster’s
Dave & Buster’s has been the go-to family gaming experience for decades. Providing numerous modern and vintage arcade experiences, game lovers of all ages will find something to enjoy during their visit. Dave & Buster’s also provides a wide selection of food items to enjoy while gaming throughout the facility.
Though Dave & Buster’s has seen success over the past few decades, many complain that it can be quite a costly experience, especially for large families. Food and drink options are overcharged, and the prizes require too many tickets. Also, while this establishment has numerous arcade games to enjoy, they have a limited selection of modern video games. Anyone who specifically wants to enjoy video games will be more interested in our establishment.
The Console
The Console is a local gaming lounge that opened up in 2018. It offers hundreds of games across popular consoles such as Xbox, PS5, and Nintendo Switch. Customers pay hourly to stay at the lounge and can purchase food and drinks for an additional cost.
However, The Console is a very small location, only offering six TVs to play games on. That means only a few individuals or groups can enjoy gaming here on any particular day. Because of this, The Console requires a reservation in order to enter the establishment. [Company Name] is much larger and can accommodate more than double the capacity.
Joe’s Game Bar
Joe’s Game Bar is a local bar dedicated to providing the best gaming experience possible. Though they are a small establishment, they have packed the bar with numerous consoles, multiple TVs, and hundreds of games. The bar also provides a cozy atmosphere that makes it easy for strangers to become friends while they compete in video games together.
However, Joe’s is still a bar whose target market are gamers who are over 21. As the establishment is primarily a bar that serves alcohol, children are not permitted there. Families who want to take their children to a gaming lounge will be more inclined to visit [Company Name].
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
- Management: Our management team has years of experience in the gaming lounge business that will prove invaluable.
- Location: [Company Name]’s location is in a safe area that is easily accessible by car, foot, or public transportation.
- Affordability: [Company Name] will aim to price its games, food, and merchandise moderately so that no one has to break the bank to have a fun night.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Offers the best food and drinks at an affordable price
- Offers a premier gaming lounge experience
- Provides an environment suitable for both individuals and families
- Provides excellent customer service
Promotions Strategy
[Company Name] expects its target market to be residents living within a ten-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:
Website/SEO
[Company Name] will develop a professional website that showcases pictures of the lounge as well as a menu of our food/drink offerings. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures and videos of the lounge and available games. The company will use targeted marketing to appeal to our target demographics.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other enticements for people to frequent the gaming lounge.
Public Relations
We will contact all local newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].
Merchandise
We will sell attractive merchandise with our logo and business name. When people see their friends and family with this merchandise, they will instantly recognize how fun and exciting our establishment is.
Pre-Opening Events
Before opening the lounge, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Billboard
[Company Name] will highlight games and food we expect to be popular on a major billboard facing the busiest highway in town. The billboard will provide the location of [Company Name] and the website URL.
Pricing Strategy
[Company Name] will aim to price its food, drinks, and games at a moderate price that is competitive with other local and national gaming lounges/centers. Our goal is to develop a reputation as an affordable gaming lounge where everyone can unwind and have a good time.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- General & administrative functions
- Hiring and training staff
Kitchen Functions
- Wait on customers and take orders
- Prepare food and drinks
- Process food bills and payment
- Provide excellent customer service
Gaming Lounge Functions
- Provide excellent customer service
- Maintain equipment and gaming inventory
- General cleaning and maintenance functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led and run by [Founder’s Name], who has worked in the industry for [X] years. [Founder’s Name] has managed some of the most popular gaming centers and similar establishments in the region. Throughout his career, he gained an in-depth knowledge of all aspects of the gaming lounge industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the business. His experience, knowledge, and skills will all be invaluable to the company.
Hiring Plan
[Founder] will serve as the lounge manager. In order to launch our gaming lounge, we need to hire the following personnel:
- Lounge Staff (3 to start)
- Bartenders (2 to start)
- Cooks (2 to start)
- Assistant Managers (2 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will primarily come from the sales of food and drink and the fee to play each video game.
The major costs for the company will be food and drink costs, staff salaries, and the lease. In the initial years, the company’s marketing spend must also be taken into consideration as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $550,000 to launch. Specifically, these funds will be used as follows:
- Lounge design/build: $250,000
- Equipment and machinery: $150,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 140 |
| FY 4 | 165 |
| FY 5 | 190 |
| Annual Lease (per location) | $60,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
