Just exactly what is a Family Entertainment Center (FEC)? The term serves to designate an industry as a whole, as well as to define a specific segment within that industry. The FEC industry consists of for-profit leisure centers that range from 10,000 S.F. indoor children’s play centers to outdoor Fun Centers, large category-killer indoor family entertainment centers to multi-acre outdoor mega-centers, and encompasses centers that target families with children, teenagers and/or adults.
The term “industry” didn’t really apply to the FEC market until about 1990. Before then most FECs were mainly outdoor miniature golf-anchored family Fun Centers. Today’s rapidly growing FEC industry now encompasses many new and different categories of centers in both outdoor and indoor configurations, including children’s entertainment centers (CECs), children’s edutainment centers (CEdCs), FECs, adult entertainment centers (AECs), and urban-based location-based entertainment (LBEs) centers.
Although many pioneering and early generation indoor FECs, such as the Discovery Zone chain (not technically an FEC), experienced difficulty or failed, the industry has matured with successful formulas and with the entry of many corporate players. A number of indoor FECs have now stood the test of time with long term, successful operation. Examples include Sports & Games in Hanover, NJ; American Adventures in Atlanta, GA and probably the oldest operating indoor FEC, Enchanted Castle in Chicago, IL.
Family entertainment centers generally have these characteristics:
- Unlike theme and amusement parks, their markets are community-based.
- Locations are in or near residential areas rather than in downtown or tourist locations (urban and tourist equivalents of FECs are often referred to as urban entertainment centers, UECs, or location-based entertainment centers. LBE’s).
- Success depends on repeat visits of six or more times per year.
- Length of stay averages two to two and one-half hours.
- Per-capita expenditure per visit is in the $11.00 – $18.00 range.
- FECs have multiple anchor attractions. This is what differentiates FECs from single anchored leisure attractions such as bowling centers, skating centers, laser tag facilities, miniature golf only facilities and pay-for-play centers using soft contained play equipment such as Discovery Zone. It is the multiple anchors that create an FEC’s image and critical mass and create its appeal and draw.
- Although not considered an anchor draw to FECs, a significant percentage of income (25± percent) comes from token-operated games.
- A significant percentage of income also comes from food and beverages, birthday parties and other celebrations.
FECs range in size from 10,000 to 200,000 square feet for indoor facilities and up to 15 acres for outdoor facilities. Types of anchor attractions often found in indoor FECs include soft-contained play, laser tag, children’s edutainment events and skating; and for the outdoors facilities: miniature golf, go-karts, bumper boats, children’s adventure play gardens and batting cages.
Based on research and materials from the International Association of Amusement Parks and Attractions (IAAPA), International Association for the Leisure and Entertainment Industry (IALEI), and consultation provided by the FEC Directory, as well as our professional Consultant, we know the following:
- Average number of visits per paying person per year is 3.2
- Average time spent within a family fun center is 2.3 hours
- Average per capita spending per paying guest is $11 – $24 total
- Average distance traveled is 32 miles
- 90.6% of facilities offer concessions, which average 21% of revenues
- Party revenues run on average 33% of gross sales
Family Entertainment is a highly profitable industry that has been growing rapidly over the past decade. This is due largely to a trend within the country to return to family values. Family entertainment has always been a popular industry that continues to grow and evolve in exciting ways. Providing a venue for family and friends to gather and enjoy themselves has always proven beneficial and profitable. Even in slow economies, families seek activity and fun, often closer to home.
The family entertainment center industry is currently growing as a result of a stronger economy and increased spending by families on entertainment (see Trends section below). In the entire Northern Virginia area, Dreamers Playland & Indoor Miniature Golf facility that caters to families, children, teens, adults and senior and unlike other facilities, Dreamers is the only one offering a strong mix of entertainment, birthday parties and educational value.
The growth of outside-of-the-home birthday parties has taken off over the past several years to the point where some smaller indoor play facilities can host up to 150 birthday parties a month, while larger facilities can host approximately 400 birthday parties a month. Even with an existing play center in the area the demand usually outpaces the availability. With these parties generating, on average, $250 – $350 each the business can add $20,000 – $35,000 to its monthly revenue.
TRENDS
Current trends in the market place that support Dreamers Playland & Indoor Miniature Golf:
- Significant increase in Birthday Parties outside the home.
- Busy double income families that spend much time taking children from one lesson to another leaving little non-structured quality time.
- Parent and tot groups seeking regular outings.
- Planned family outings an important event due to busy family schedules.
- Need for safe, comfortable family-friendly environments.
Entertainment spending has grown since 2001. The average household spent $1,953 on entertainment in 2007, up from $1,868 in 2001, after adjusting for inflation—a 4.6 percent increase. Overall, Americans devoted 4.9 percent of their spending dollars to entertainment in 2007, down slightly from 5.0 percent in 2001. The average American household now spends substantially more on entertainment than on clothes.
Married couples with school-aged children at home spend the most on entertainment among household types—69 % more than the average household. They are especially big spenders on fees for recreational lessons, cultural subscriptions and educational spending, adding up to more than three times as much as the average household.
