beyond bowling winter 2013

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The quarterly magazine devitoed to the business of Bowling Family Entertainment Centers.

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28 IBI February 2013

urnabout is fair play,” the saying goes. An interestingphenomenon is occurring in our world of BowlingEntertainment Centers (BECs): for the last five years

we have participated in the evolution of the traditionalbowling center to the BEC model by adding familyentertainment (FEC) elements to the core bowling center.That model has proved successful as an FEC model helpsbowling centers attract additional guests, trade duringadditional hours, offer alternate pricing schemes, andsupport better food and beverage, among other synergies.

Now, FECs are approaching this model from the oppositedirection. Synergy is synergy, after all. For all of the samereasons discussed above, traditional (non-bowling) familyentertainment centers are now adding bowling as anattraction. This month’s lead story features Boondocks, oneof the best operated traditional FEC chains in the U.S.,which has embraced bowling as an attraction in several ofits FECs. Read all about it inside.

Other examples of non-bowling FECs evolving intoBECs are popping up all around the world. This marketconvergence has allowed FEC talent and suppliers to infusenew thinking into the world of the bowling proprietor. Nowbowling proprietors can return the favor, sharing theirknowledge and experience through industry forums,associations and trade shows.

Rounding out the issue are articles previewing theAmusement Expo trade show and an interview withproprietor David Bardon who shares details and insights onhis recent BEC transformation in Milwaukee.

According To George Chris’ Corner

INTRO

T hile it may have been a while since you’ve triedyour hand at a crane game in an arcade, we allknow it takes a certain level of skill in order to

be successful. Like everything in life, there are people thathave mastered this game who always seem to walk awaywith a prize. I’m sure you have seen someone like this,maybe even in your center. The person peruses theinventory inside the glass case, not necessarily finding theitem they want the most, but the piece that would give themthe best chance at winning.

After popping in the quarters they painstakingly maneuverthe claw ever so gently north to south and east to west,maybe taking a few seconds to view things from differentangles until they are confident the claw is lined up for “thekill.” Slapping the console button, everyone watch andwaits with baited breath as the talon descends and wrapsitself around the coveted booty. Once the prize hasmiraculously been plucked from the pile, a celebration is helduntil the loot drops into the chamber.

It could be said the same formula can apply for life inbusiness. One must survey the market to determine if aninvestment is a wise choice. Once the cash has been shelledout, you go to work meticulously guiding your business onthe path to greatest victory. Eventually you get to a pointof no return where you have to take a plunge to grabwhat you desire. If your planning was well thought outand timing is right, out of the landscape you can pull yourown piece of the pie.

W

Chris HolmesDirector of Advertising,International BowlingIndustry

George McAuliffePresident, PinnacleEntertainment Advisors

30 IBI February 2013

musement Expo is right around the corner, at the Las VegasConvention Center March 20-22. Amusement Expo is FamilyEntertainment Center (FEC) focused with games and redemption

merchandise and other attraction vendors such as laser tag and rides andincludes support systems like debit card providers. Its size and exhibitorlineup means it can be a valuable stop for Bowling Entertainment Center(BEC) owners and those thinking of adding games and FEC attractions.

The show includes a lineup of educational sessions on Wednesday,March 20, from 8-11:30a.m. (go to amusementexpo.org for details whichwere unavailable at this writing). The show floor will be open: Wednesday12a.m. - 6p.m.; Thursday 10a.m. - 5p.m.; and Friday from 9a.m. -1p.m.I’ll be in the Redemption Plus booth, so stop by and say hello. A notefor all you basketball fans out there, during March Madness, Vegas is afun place to mix business with pleasure!

REDEMPTION GAMESWe saw a lot of great looking new games at IAAPA, most of which will

be on display at Amusement Expo. Having had a few months of earningsto study, we now have hard data on the following games which weexpect to see at the show and which have earned Pinnacle

Amusement Expo

PREVIEW By George McAuliffe

The latest look at redemption games and cranes and merchandiser games.

A recommendations: Baytek’s Crank It, in one andtwo player, and Connect Four; Benchmark’sMonster Drop & Monster Drop Extreme; Elaut’sWizard of Oz Pusher (its $50k pricetag meanshigh volume locations); and E-Claw Color GlowCranes. Betson has re-released Spongebob

Jellyfishing, a great children’s and family-crossover game. Namco’s Dead Storm Pirates isa quality attraction video, and Sega will show itshit merchandiser, Key Master, now available insix new colors. Its Super Monkey Ball is alsoearning well.

Keep in mind our show philosophy, learnedthe hard way over many years, that it doesn’tmatter much if you like a game, you need to seeactual numbers and a track record. Ourrecommendations for your buying decisions arebased on: a) your specific game mix; b) gameearnings history; c) game cost; d) payout impact;e) potential resale value; f) mechanical

32 IBI February 2013

reliability/operating cost. All of these are measuredagainst the alternative use of your capital. Then tossin intangibles like experience with similar games overtime, knowledge of manufacturer’s track records, etc.

New games that we liked at IAAPA and arewatching include: Baytek’s Prize Zone, a newautomated redemption center; Betson/Raw Thrills’ SnoCros; and ICE’s Doodle Jump Arcade, Milk Jug Toss,and Harpoon Lagoon. Namco’s Pac Man Smash AirHockey, 4 player, attracted a lot of attention, as didSega’s Bejeweled. We expect Coastal to show TempleRun, Simpson Soccer, and Sea Wolf 55 DLX. LAI’sBalloon Buster, Mega Stacker Lite (the ticket versionof its hit Mega Stacker) will also show its three newchildren’s redemption games: Pirate Battle, PrincessCastle, and Choo Choo Train. Rounding out thegames we like are: Fruit Mania and Pirates Hook,and Adrenaline’s Black Out, a merchandiser withhologram-like play features.

CRANES AND MERCHANDISERS (C&M)I’m in bowling centers every week all over the

country. If there is one area that stands out as needingimprovement, it is the crane and merchandiser lineup.Many centers are leaving money on the table.

34 IBI February 2013

Amusement Expo is a good show for improving yourC&M program, both machines and merchandise.

C&M should be terrific earners in almost any bowlingcenter. There are three main areas where most C&Mprograms fail: machine lineup, merchandising practices,and value equation. Think of your crane and merchandiserlineup as walking through the mall. You have menswear,womenswear, shoes, jewelry, toys, etc. There is a varietyof merchandise to appeal to a wide demographic, and soit should be with C&M.

C&M Lineup: Many people think that if they have onecrane, adding a second crane will seriously impact therevenues of the first. When done properly, with the rightvariety of machine and merchandise, the opposite is true:the total category can add sales. That is the reason retailersgather in shopping centers: the whole is greater than theparts. C&M is viable in a redemption game room, becauseit is a different purchase/play decision for the player. Withthe prospect of winning a nice prize instantly, redemptiongame players are often motivated to dig into their pocketsfor that extra play.

Merchandising: The key principles include cleanliness(inside and out), lights all working, good merchandise mixesfrequently changed and properly displayed in the game, anda well-managed payout. Our objective is to get the customerto STOP, LOOK, and PLAY, and sequencing or changing themix regularly is a big weapon in the arsenal. Do cinemas playthe same movies month after month or year after year? Themerchandise mix not only has to change, it has to be anoticeable change. A merchandise mix should stand forsomething! Working in monthly cycles in high repeat locationsto change the mix of games frequently increases thelikelihood that the client will keep playing.

Value Equation: price per play, cost of prize, and win ratio

are interrelated and together to constitute your value propositionfor the customer. Most cranes today are still operated at .50cents/play. We recommend a 25% payout percentage on C&M.The following table illustrates the interrelationship:

In a repeat visitation environment, and certainly in bowlingcenters, “Winners Make Players.” Our guests/players aren’tstupid, and if they don’t get a fair shot at winning, they willnot keep playing. Operators who lock in near the 25% payouthave happy customers who keep playing. Remember, theyhand us $1.00, and we hand them back .25 cents. Don’t wewant to make that transaction as often as possible? ❖

George McAuliffe is a 30 year family entertainmentcenter operator and president of Pinnacle EntertainmentAdvisors by Redemption Plus. Pinnacle is an industryconsulting firm www.grouppinnacle.com. George hasoperated entertainment centers from 2,000 to 150,000square feet including redemption and merchandise gamessince 1983 and has assisted numerous BowlingEntertainment Center owners develop their FEC side. Heis a regular speaker at industry conventions worldwide andwrites for RePlay and International Bowling IndustryMagazine. He can be reached at 913-563-4370 or email [email protected].

Price per Play 0.50 0.50 $1.00 Win Rate/Ratio 1:10 1:20 1:15Payout % 25% 25% 26%Cost of Sales 25% 25% 26%Gross Sales per Prize $5.00 $10.00 $15.00Avg. Cost per Item $1.25 $2.50 $4.00 Gross Profit $3.75 $7.50 $11.00 Avg. Size of Item 5-7" 9-12" 14-20"

CRANE PRICING TABLE

36 IBI February 2013

In 1993 Boondocks diversifiedinto FEC operations, opening itsfirst center in southern Utah. Theyfollowed it with a second FEC inMeridian, Idaho in 1998. Thecompany became known for itscomprehensive mix of indoor andoutdoor family activities, rangingfrom go-karts and bumper boats tolaser tag, arcades and soft playareas. Boondocks subsequently soldits first properties and by 2009 hadevolved into three 10-acre FECs;two in Utah and one in Colorado.

Bowling entered the picture in2009, when the company built itsKaysville, Utah FEC and wanted toadd an attraction to boost revenuesduring colder weather. “Bowlingbecomes busy when our outdoorattractions slow down,” saysBoondocks partner Damon Day, “andit’s a good anchor for our indoorattractions.” The Kaysville center has20 full-size lanes.

In 2012 Boondocks installed 20lanes at its Northglenn, Coloradolocation as part of an extensiverenovation. Day says they will addbowling to their Draper, Idaholocation in the future, but haven’t seta date yet.

The bowling facilities are state-of-the-art and feature Brunswickequipment including the Vector

eople love bowling at Boondocks Fun Centers, but it didn’t start that way.Many family entertainment centers began as bowling centers that expandedto include other popular activities like arcade games, laser tag and live

sports on TV. Boondocks took a different approach, developing a successful mix ofother indoor and outdoor family attractions first and then adding bowling tocomplement it.

Boondocks didn’t begin with bowling because the company’s initial expertise wasin constructing such outdoor attractions as batting cages, go-kart tracks and miniaturegolf courses for FECs. Since its inception in 1986, the company has built more than200 projects at FECs across the country.

Having Fun In The Boondocks

BEYOND BOWLING FEATURE

Boondocks Family Entertainment Centers in Utah and Colorado are someof the many successful FECs that have added bowling to their attractions.

P

By Robert Sax

37IBI February 2013

scoring system. Bowlers can relax incontemporary couch seating and enjoylaneside food and beverage service.There’s glow bowling of course, andmulti-mask media screens that displaymusic videos and sporting events inhigh-definition.

Boondocks’ guests have respondedenthusiastically to bowling. Many guestsinclude bowling as part of one ofBoondocks’ package deals, some ofwhich allow unlimited bowling. While it’sstrictly casual play at Boondocks, a “FunClub” program offers regular groups aten-week “season” capped with anawards banquet.

Day takes a sophisticated approachto managing and building business atBoondocks. The Boondocks philosophyis based on creating a great guestexperience, and great care is taken togive them the attractions they wantand the exemplary service theydeserve. As the attractions becamemore diverse, Day realized the need for

38 IBI February 2013

an IT system that would support the operations and allow them toperform as well as he and his partner wanted.

Birthday parties are a prime example of what they wanted todo better. “With the traditional point-of-sale system we had,” saysDay, “folks would check in and we would charge their credit cardand send them off to have their party. It prevented the upsellopportunities that exist in providing them with additional[services.]”

In 1997 Day began researching software vendors to the

attractions industry. He ultimately chose Ideal Software because heliked their product and because they were willing to add featuresas Boondocks’ needs grew. David Goldman, CEO of Ideal and apioneer of software for FEC management, welcomed the challenge.“Damon has tremendous understanding on how best to run hisfacility,” says Goldman. “Ideal was proud to work with him tobring his vision to life.”

In 1998 Boondocks installed its first Ideal point-of-sale software,which has evolved into a comprehensive and powerful system that

40 IBI November 2012

integrates all aspects of running its FECs. Everything from ticket and foodsales to the Vector scoring system to employee timecards and access ishandled by one platform with a single point for generating a variety offinancial and management reports.

Another valuable feature is support for online reservations. Withbirthday parties, for example, guests can log on to the Boondocks siteto schedule date and time, select a package deal, make a deposit andeven order a custom cake.

The system also handles online sales of discounted tickets, a promotionthat is popular with local businesses. The business arranges a discount

that its own customers or employees can getwith a special promo code. Charities can offerdiscounted tickets as a fundraiser, withBoondocks rebating a portion of the proceedsto them.

It’s all a part of embracing the trend ofcustomers’ seeking a better, more convenient

experience at an FEC. More and betterinteractive attractions are also a big part of thattrend, notes Day. Given the large menu ofexciting choices they offer, Boondocks canexpect to remain the center of fun for manyfamilies for years to come. ❖

Robert Sax is a writer and PR consultant inLos Angeles. He grew up in Toronto, Canada,the home of five-pin bowling.

41IBI February 2013

ENGAGING INTERVIEW

With a successful modernization of one of his centers, David reflectson his business.

Interview with David Bardon

1. David, let’s get started by telling us about yourselfand Bardon Bowling Centers.

We operate four bowling centers in Wisconsin. Thecompany started in 1993 when my Dad built a center inElkhart Lake, which I later bought as an investment. Mydegree was in chemistry with a Master’s in EnvironmentalScience, so I got in the business by accident. Once I did, I washaving fun and started adding centers.

2. You recently modernized Olympic Lanes, tell us aboutthat center.

Olympic was a traditional 36-lane center built in the 1950sin Milwaukee. We purchased it in 2002. Over the years,revenue was going the wrong way as leagues declined fromabout 35% of sales to 20%. It became clear that if this wasgoing to be a significant center, then we had to do a seriousmodernization. As the process moved forward, we ran intodesign and cost issues which took us into 2011. That’s whenJB’s on 41, the new Olympic Lanes, was born on paper. Itphysically came to life in November, 2012.

3. What did the remodel entail?We started the process with the type of customer

experience we wanted to sell. We added The Junction Bar andGrill and modernized our game room. We removed one lane,created Suite 41, our 10 lane private boutique. We upgradedour remaining 25 regular lanes with new masking units featuringthe Milwaukee cityscape, a new ceiling, ball returns, the latestBrunswick Vector Plus scoring system, flat screen monitors, andnew Galactic (Cosmic) Bowling with a sound and lightingsystem across all 25 lanes. We put couches across all 25 lanes,using different styles for the main 25 and in Suite 41.

4. Describe Suite 41 a bit more if you would.It’s a different atmosphere. We added projection video

across all ten lanes as well as a great lighting and soundsystem and comfortable furniture. It is targeted to corporategroups and private parties. When not booked, it is used foropen play for an hourly fee.

5. How important is the foodand beverage piece?

Extremely important. The oldOlympic Lanes offered a bar withfrozen pizza and snack bar foodpresentation. A key step wasrecruiting our GM, Dave Kash, fromthe restaurant industry. TheJunction has similarities to anApplebee’s, Bennigan’s, or Chili’smodel with some of our own twists.We now have a full kitchen to serveour destination patrons, bowlers,and our corporate and group sales events, plus 126 seats.Reviews have been great on the food and sales are up nicely.

6. You added a game room. Why no other familyentertainment attractions?

Space constraints. We had a game room prior but with verydated games and a small redemption center. As you know(editor’s note: Pinnacle consulted on the project) we totallyupdated the game mix, added a state of the art redemptioncenter, and re-themed the room as The Speed Zone.

7. Any other wisdom you care to share for our readersthinking of modernizing or adding other attractions totheir business?

Ask me six months from now, once we get all of ourtraining and marketing programs in place. I will say this: doyour homework and work with people who have theexpertise you need. Brunswick was our lead vendor on theproject. They brought far more than just the bowlingequipment. They were there to help with demographics,market study, design, and introduced us to the experts weneeded. We’re very happy with the outcome and ready forthe hard work ahead.

David, thanks for sharing your time and thoughtswith our readers. ❖

David Barden

By George McAuliffe