Family Entertainment Center Business Plan Template
If you want to start a family entertainment center business or expand your current family entertainment center business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of business plans for family entertainment centers.
The following family entertainment center business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Family Entertainment Center Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new family entertainment center located in the heart of [Location]. Our center will be the ultimate hub for family-friendly fun offering multiple activities such as arcade games, a small bowling alley, ball pits, and an indoor playground. We also provide a full menu of delectable appetizers and meals from our restaurant as well as a gift shop where customers can either buy or redeem tickets for prizes. We aim to become the most popular family entertainment center in the city by providing something fun for everyone.
Products Served
[Company Name] will provide numerous games and activities to entertain our customers. Some of these include:
- Arcade games
- Bowling alley
- Ball pits
- Air hockey tables
- Foosball tables
- Pool tables
- Indoor playground
We will also offer a wide selection of food and drinks for customers to enjoy while they and their children play around the center. Customers can either redeem their tickets for prizes or purchase prizes and merchandise directly at our gift shop. Large groups can rent out one of our private rooms for special events.
Customer Focus
[Company Name] will serve the residents of [Location] and the surrounding areas. The demographics of these customers are as follows:
- 100,872 residents
- Average income of $65,000
- 42% married
- 35% 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 entertainment centers in the region and is eager to utilize his experience and skills to start a new family entertainment brand. Throughout his extensive career, he gained an in-depth knowledge of all aspects of the family entertainment 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 be invaluable to the company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are very few family entertainment centers 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 family entertainment business.
- The family entertainment business has proven to be successful in the United States.
Financial Highlights
[Company Name] is currently seeking $750,000 to launch. Specifically, these funds will be used as follows:
- Center design/build: $350,000
- Equipment and machinery: $200,000
- Working capital: $200,000 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 family entertainment center located in the heart of [Location]. Our center will be the ultimate hub for family-friendly fun in the city. To accomplish this, we will offer a wide variety of games and activities to choose from including arcade games, ski ball, foosball, bowling, ball pits, and an indoor playground. Families of all kinds will find something they enjoy when they visit [Company Name].
In addition to our activities, we provide a sizable gift shop where customers can either redeem tickets or pay cash to get prizes and merchandise. Families can also enjoy delicious food and drinks from our extensive menu which includes burgers, sandwiches, salads, and alcoholic beverages. Anyone who wants to host a large group or special event can rent one of our private rooms for an hourly or daily fee.
[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 entertainment centers throughout the region. His time managing similar businesses has helped him understand what makes family entertainment centers successful as well as what keeps customers coming back. He also gained an in-depth knowledge of all aspects of an entertainment center 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 his knowledge and skills to build the most popular family entertainment center in [Location].
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-Corporation on [Date of Incorporation] and found a potential center 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 center 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 and activities
- Determined equipment and inventory requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will provide the ultimate family fun experience. Our enormous center will be home to several activities and attractions, including an arcade, bowling alley, ball pits, and indoor playground. We will also offer a wide selection of food and drinks for customers to enjoy while they and their children play around the center. Customers can either redeem their tickets for prizes or purchase prizes and merchandise directly at our gift shop. Large groups can rent out one of our private rooms for special events.
III. Industry Analysis
The family entertainment center market has taken off in recent years. Though people have enjoyed these establishments for decades, they saw a boom in business in recent years. We expect this trend to continue as the entertainment center market continues to expand. According to Allied Market Research, the family entertainment center industry was valued at $30.9 billion last year and is expected to grow at a compound annual growth rate (CAGR) of 11.5% over the next five years. 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 families and community residents living in [Location] and its surrounding areas. All are welcome to play our games and enjoy quality family time at our new family entertainment center.
Customer Segmentation
Though we accept everyone who has a love for family-friendly entertainment, we will specifically target the following customer segments:
- Families: Entertainment centers are a popular location for families to frequent and enjoy themselves after a long week of school and work. We will make sure to market the numerous family-friendly games and activities we have that parents and kids can enjoy together.
- Middle-class residents: We aim to be the ultimate center for middle-class families and workers who need some fun after a hard week. We will keep our pricing moderate and use marketing tactics to specifically target the local middle class.
- Groups And Parties: Entertainment centers are the perfect setting for large groups, parties, and other get-togethers. We will make sure to showcase our large building, private rooms for parties, and the variety of activities we offer to large groups.
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 entertainment center experience for decades. With a plethora of games and activities to choose from, customers 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 as well as great prizes and merchandise to purchase.
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. A family can easily spend hundreds of dollars in a single night. Families who frequent [Company Name] will find all our prices to be much more reasonable.
Funland Extravaganza
Funland Extravaganza is a family entertainment center that is located in a suburban mall about ten miles from [location]. Their games and entertainment include pool tables, basketball hoops, driving console games, popular arcade games, and a snack bar. Funland has something for everyone, which makes it a popular entertainment center in its local suburban area.
While Funland Extravaganza will continue to thrive, its location is inconvenient to many who live in [Location]. Therefore, we expect it to only be a minor competitor for our target market.
Chuck E Cheese
Chuck E Cheese has been a staple for kids and family entertainment for decades. Providing numerous games and activities, Chuck E Cheese is a great place to take your kids for a party, event, or night out. The establishment is well known for being a great host for birthday parties and recently began offering a more inclusive environment for children with sensory sensitivities.
However, Chuck E Cheese’s has lost much of the good reputation it built up decades ago. From low-quality food and prizes to unpleasant staff, the business is no longer the go-to place for families. As such, much of their previous target demographic will be looking for a similar establishment that can provide a much better experience.
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 family entertainment business that will prove invaluable.
- Location: [Company Name]’s location is located 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:
- Great food and drinks at an affordable price
- Premier family entertainment experience
- Wide range of activities to ensure everyone has fun
- 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 entertainment center 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 entertainment center and the activities we have. 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 entertainment center.
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 and visit to see it for themselves.
Pre-Opening Events
Before opening the entertainment center, [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, games, and activities at a moderate price that is competitive with other local and national family entertainment centers. Our goal is to develop a reputation as an affordable family entertainment center where everyone can unwind and have a good time.
VII. Operations Plan
Functional Roles
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
Service Functions
- Provide excellent customer service
- Maintain arcade machines and other activities
- General cleaning and maintenance functions
- Sell merchandise and prizes
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. He received an MBA from [University] and has managed some of the most popular entertainment centers in the region. After years of being on the road, and traveling all over the country to manage his businesses, he has decided to come back to [Location] and open up a local entertainment center for his hometown community.
Throughout his career, he gained an in-depth knowledge of all aspects of the family entertainment center 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’s Name] will serve as the center manager. To launch our entertainment center, we need to hire the following personnel:
- Wait Staff (4 to start)
- Bartenders (2 to start)
- Cooks (2 to start)
- Assistant Managers (2 to start)
- Maintenance Crew (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 fees to play our games and activities.
The major costs for the company will be food and drink costs, staff salaries, and lease. In the initial years, the company’s marketing spending must also be taken into consideration as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $750,000 to launch. The capital will be used for funding capital expenditures, building and design, purchasing equipment and arcade games, labor, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Center design/build: $350,000
- Equipment and machinery: $200,000
- Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
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 |
