Bowling Alley Business Plan
If you want to start a bowling alley or expand your current bowling center, you need a business plan.
The following bowling center business plan gives you the key elements to include in your own business plan. In addition to this template, conducting market research on your local customer base will help you identify potential market trends and customer segments to better understand the viability of your bowling business.
Sample Bowling Alley Business Plan
Below is a bowling alley business plan example with each of the key sections to help you write a bowling alley business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a new bowling alley located in downtown [location]. We offer the best bowling alley in the area, along with an assortment of snacks and an arcade. The bowling center consists of 20 bowling lanes and hundreds of arcade games and other activities. Our mission is to provide the best bowling experience possible by offering a fun atmosphere and affordable rates for all families and gatherings to enjoy.
Products Served
[Company Name] is a large bowling alley with 20 bowling lanes. Customers are charged a fee per person per bowling game. Groups can either walk in or reserve lanes ahead of time. There is an additional charge to rent shoes, but bowling balls are complimentary.
Customers can purchase a variety of snacks and drinks as they bowl. They can also visit our arcade and play games. Each game takes tokens which customers can purchase at the arcade counter.
Customer Focus
[Company Name] will primarily serve residents who live within a 5-mile radius of our location. The demographics of these customers are as follows:
- 24,621 residents
- Average income of $54,500
- 43.1% married
- 35% with children under 18
- Median age: 39 years
Management Team
[Company Name] is led by [Founder’s Name], who has been in the bowling alley and family entertainment industries for [X] years. He has worked at bowling alleys, arcades, and similar venues for his entire career, starting as a cashier and working his way up into management. Though he has never run a business of his own, he has worked in the industry long enough to gain in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is very little competition in the downtown area as most bowling alleys are located on the outskirts of the metro area.
- The bowling alley location will be in a high-volume area and will thus be highly convenient to significant numbers of passersby each day.
- The bowling alley business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $650,000 to launch. Specifically, these funds will be used as follows:
- Bowling alley design/build: $400,000
- Equipment and technology: $100,000
- 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 bowling alley located in downtown [location]. We offer the best bowling alley in the area, along with an assortment of snacks and an arcade. The bowling center consists of 20 bowling lanes and hundreds of arcade games and other activities. Our mission is to provide the best bowling experience possible by offering a fun atmosphere and affordable rates for all families and gatherings to enjoy.
[Company Name] is led by [Founder’s Name], who has been in the bowling alley and family entertainment industries for [X] years. He has worked at bowling alleys, arcades, and similar venues for his entire career, starting as a cashier and working his way up into management. Though he has never run a business of his own, he has worked in the industry long enough to gain in-depth knowledge of all aspects of the business.
[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.
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]
- Hired an interior designer to design the layout of the establishment
- Determined the initial selection of arcade games
- Determined equipment and inventory requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] is a large bowling alley with 20 bowling lanes. Customers are charged a fee per person per bowling game. Groups can either walk in or reserve lanes ahead of time. There is an additional fee to rent shoes, but bowling balls are complimentary.
Customers can purchase a variety of snacks and drinks as they bowl. They can also visit our arcade and play games. Each game takes tokens which customers can purchase at the arcade counter.
III. Industry Analysis
Bowling is a timeless activity. For decades, families and large gatherings have enjoyed bowling as a fun hobby or as a competitive sport. Every day thousands of people across the country gather with their family and friends to knock down some pins together.
Though the bowling industry has declined in recent years, there is still optimism for the industry’s future. According to IBISWorld, the bowling centers industry was valued at $2.9 billion last year and was expected to increase by 5.7%. Furthermore, according to Verified Market Research, the industry will continue to grow at a CAGR of 4.52% over the next 10 years. The decline in recent years was primarily affected by the pandemic. Since the world has gone back to normal, families and groups are eager to enjoy bowling and entertainment centers again. This means that this is an optimal time to open up a bowling alley.
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 bowling alleys or arcade games is welcome to our establishment.
Customer Segmentation
Though we will accept everyone who has a love for bowling, we will specifically target the following three customer segments:
- Families: Bowling alleys are perfect centers for families to enjoy themselves after a long week of school and work. Therefore, we will market our family-friendly atmosphere as well as the numerous family activities and games we offer.
- Groups And Parties: Bowling alleys are the perfect setting for large groups, parties, and other get-togethers. Therefore, we will make sure to showcase our large building, special rates for large groups, private rooms for parties, and the variety of other activities we offer for large gatherings.
- Competitive Bowlers: Bowling is still a fun and competitive sport. We will be more than happy to host team practices and matches to keep the local community involved in this game. We are also considering offering discounts for teams who frequent our establishment often.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Family Night Bowling
Family Night Bowling is a popular bowling center located just west of [location]. It is an enormous center with 30 lanes as well as an arcade and other activities. It opens at 4 p.m. as it caters to folks who work during typical business hours.
Though Family Night Bowling will continue to thrive, its limited hours prevent many people from enjoying its center. [Company Name] opens at noon every day, making it a much more convenient option for families, groups, and teams who want to bowl during daytime hours.
Duke’s Arcade
Duke’s Arcade is the #1 arcade in [location]. The establishment is home to thousands of classic and modern arcade games, meaning no one who enters the building is ever bored. With great food and affordable prices, Duke’s caters to everyone looking for a fun, game-filled evening.
Though Duke’s will remain the #1 arcade in the city, it does not have a bowling alley. It will only be competitive for customers who are specifically looking for a fun night at an arcade.
SuperPlay Family Entertainment Center
SuperPlay Family Entertainment Center is the #1 entertainment center in the eastern suburbs of [location]. It offers everything a group needs to have a great time. From bowling to an arcade to billiards and other fun games, no one in your group will be bored when they come to SuperPlay.
Though SuperPlay Family Entertainment Center will continue to thrive, its location makes it difficult for downtown residents to frequent the establishment. [Company Name] will be a much more convenient option for those who don’t want to commute far to have a fun night.
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 bowling and family entertainment business that will prove invaluable.
- Location: [Company Name]’s location is in a safe area easily accessible by car, foot, or public transportation. It is also located in the heart of downtown [location], which has few other bowling alleys or entertainment centers to compete with.
- Pricing: [Company Name] will aim to price its bowling lanes, food, and arcade games 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:
- Offering a premier bowling experience as well as other activities to enjoy
- Offering the best food and drinks at an affordable price
- Providing an environment suitable for both individuals and families
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be residents living within a 10-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 bowling alley and arcade 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 bowling alley and the other fun activities we offer. 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 provide other enticements for people to frequent the bowling alley.
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 bowling alley, [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 our large bowling center and affordable rates 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]’s pricing will be moderate so that all families and groups can frequent our establishment without breaking the bank.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Service Functions
- Providing customer service
- Renting out shoes and bowling lanes
- Preparing snacks and drinks
- Selling arcade tokens and merchandise
- Janitorial functions
Maintenance Functions
- Repairing and maintaining bowling alley equipment and technology
- Repairing and maintaining arcade equipment
Administrative Functions
- Bookkeeping
- Marketing
- General & administrative functions
- Hiring and training staff
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 by [Founder’s Name], who has been in the bowling alley and family entertainment industries for [X] years. He has worked at bowling alleys, arcades, and similar venues for his entire career, starting as a cashier and working his way up into management. Though he has never run a business of his own, he has worked in the industry long enough to gain in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Hiring Plan
[Founder’s Name] will serve as the Manager of the establishment. In order to launch the bowling alley, we need to hire the following personnel:
- Bowling Alley Team Members (3 to start)
- Arcade Team Members (2 to start)
- Maintenance Crew (2 to start)
- Assistant Managers (2 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from bowling lane rentals, shoe rentals, food purchases, and arcade purchases.
The major costs for the company will include labor expenses, technology purchasing and upkeep, food costs, and salaries. In the initial years, the company’s marketing cost is expected to be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $650,000 to launch. The capital will be used for funding capital expenditures, labor, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Bowling alley design/build: $400,000
- Equipment and technology: $100,000
- 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 | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease (per location) | $50,000 |
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 |
