Beyond Bowling Winter 2013

INTRO

According To George “

urnabout is fair play,” the saying goes. An interesting phenomenon is occurring in our world of Bowling Entertainment Centers (BECs): for the last five years we have participated in the evolution of the traditional bowling center to the BEC model by adding family entertainment (FEC) elements to the core bowling center.

That model has proved successful as an FEC model helps bowling centers attract additional guests, trade during additional hours, offer alternate pricing schemes, and support better food and beverage, among other synergies.

Now, FECs are approaching this model from the opposite direction. Synergy is synergy, after all. For all of the same reasons discussed above, traditional (non-bowling) family entertainment centers are now adding bowling as an attraction. This month’s lead story features Boondocks, one of the best operated traditional FEC chains in the U.S., which has embraced bowling as an attraction in several of its FECs. Read all about it inside.

Other examples of non-bowling FECs evolving into BECs are popping up all around the world. This market convergence has allowed FEC talent and suppliers to infuse new thinking into the world of the bowling proprietor. Now bowling proprietors can return the favor, sharing their knowledge and experience through industry forums, associations and trade shows.

Rounding out the issue are articles previewing the Amusement Expo trade show and an interview with proprietor David Bardon who shares details and insights on his recent BEC transformation in Milwaukee.

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George McAuliffe

President, Pinnacle Entertainment Advisors

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Chris’ Corner hile it may have been a while since you’ve tried your hand at a crane game in an arcade, we all know it takes a certain level of skill in order to be successful. Like everything in life, there are people that have mastered this game who always seem to walk away with a prize. I’m sure you have seen someone like this, maybe even in your center. The person peruses the inventory inside the glass case, not necessarily finding the item they want the most, but the piece that would give them the best chance at winning.

After popping in the quarters they painstakingly maneuver the claw ever so gently north to south and east to west, maybe taking a few seconds to view things from different angles until they are confident the claw is lined up for “the kill.” Slapping the console button, everyone watch and waits with baited breath as the talon descends and wraps itself around the coveted booty. Once the prize has miraculously been plucked from the pile, a celebration is held until the loot drops into the chamber.

It could be said the same formula can apply for life in business. One must survey the market to determine if an investment is a wise choice. Once the cash has been shelled out, you go to work meticulously guiding your business on the path to greatest victory. Eventually you get to a point of no return where you have to take a plunge to grab what you desire. If your planning was well thought out and timing is right, out of the landscape you can pull your own piece of the pie.

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Chris Holmes

Director of Advertising, International Bowling Industry

PREVIEW

By George McAuliffe

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

musement Expo is right around the corner, at the Las Vegas Convention Center March 20-22. Amusement Expo is Family Entertainment Center (FEC) focused with games and redemption merchandise and other attraction vendors such as laser tag and rides and includes support systems like debit card providers. Its size and exhibitor lineup 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 which were unavailable at this writing). The show floor will be open: Wednesday 12a.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 note for all you basketball fans out there, during March Madness, Vegas is a fun place to mix business with pleasure!

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recommendations: Baytek’s Crank It, in one and two player, and Connect Four; Benchmark’s Monster Drop & Monster Drop Extreme; Elaut’s Wizard of Oz Pusher (its $50k pricetag means high volume locations); and E-Claw Color Glow Cranes. Betson has re-released Spongebob

REDEMPTION GAMES We 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 earnings to study, we now have hard data on the following games which we expect to see at the show and which have earned Pinnacle

Jellyfishing, a great children’s and familycrossover game. Namco’s Dead Storm Pirates is a quality attraction video, and Sega will show its hit merchandiser, Key Master, now available in six new colors. Its Super Monkey Ball is also earning well.

Keep in mind our show philosophy, learned the hard way over many years, that it doesn’t matter much if you like a game, you need to see actual numbers and a track record. Our recommendations for your buying decisions are based on: a) your specific game mix; b) game earnings history; c) game cost; d) payout impact; e) potential resale value; f) mechanical 30

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reliability/operating cost. All of these are measured against the alternative use of your capital. Then toss in intangibles like experience with similar games over time, knowledge of manufacturer’s track records, etc.

New games that we liked at IAAPA and are watching include: Baytek’s Prize Zone, a new automated redemption center; Betson/Raw Thrills’ Sno Cros; and ICE’s Doodle Jump Arcade, Milk Jug Toss, and Harpoon Lagoon. Namco’s Pac Man Smash Air Hockey, 4 player, attracted a lot of attention, as did Sega’s Bejeweled. We expect Coastal to show Temple Run, Simpson Soccer, and Sea Wolf 55 DLX. LAI’s Balloon Buster, Mega Stacker Lite (the ticket version of its hit Mega Stacker) will also show its three new children’s redemption games: Pirate Battle, Princess Castle, and Choo Choo Train. Rounding out the games we like are: Fruit Mania and Pirates Hook, and Adrenaline’s Black Out, a merchandiser with hologram-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 needing improvement, it is the crane and merchandiser lineup.

Many centers are leaving money on the table.

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

C&M should be terrific earners in almost any bowling center. There are three main areas where most C&M programs fail: machine lineup, merchandising practices, and value equation. Think of your crane and merchandiser lineup as walking through the mall. You have menswear, womenswear, shoes, jewelry, toys, etc. There is a variety of merchandise to appeal to a wide demographic, and so it should be with C&M. C&M Lineup: Many people think that if they have one crane, adding a second crane will seriously impact the revenues of the first. When done properly, with the right variety of machine and merchandise, the opposite is true: the total category can add sales. That is the reason retailers gather in shopping centers: the whole is greater than the parts. C&M is viable in a redemption game room, because it is a different purchase/play decision for the player. With the prospect of winning a nice prize instantly, redemption game players are often motivated to dig into their pockets for that extra play.

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

Value Equation: price per play, cost of prize, and win ratio 34

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

CRANE PRICING TABLE Price per Play Win Rate/Ratio Payout % Cost of Sales Gross Sales per Prize Avg. Cost per Item Gross Profit Avg. Size of Item

0.50 1:10 25% 25% $5.00 $1.25 $3.75 5-7"

0.50 1:20 25% 25% $10.00 $2.50 $7.50 9-12"

$1.00 1:15 26% 26% $15.00 $4.00 $11.00 14-20"

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

George McAuliffe is a 30 year family entertainment center operator and president of Pinnacle Entertainment Advisors by Redemption Plus. Pinnacle is an industry consulting firm www.grouppinnacle.com. George has operated entertainment centers from 2,000 to 150,000 square feet including redemption and merchandise games since 1983 and has assisted numerous Bowling Entertainment Center owners develop their FEC side. He is a regular speaker at industry conventions worldwide and writes for RePlay and International Bowling Industry Magazine. He can be reached at 913-563-4370 or email at gmcauliffe@redemptionplus.com.

BEYOND BOWLING FEATURE

By Robert Sax

Having Fun In The Boondocks Boondocks Family Entertainment Centers in Utah and Colorado are some of the many successful FECs that have added bowling to their attractions.

eople love bowling at Boondocks Fun Centers, but it didn’t start that way.

Many family entertainment centers began as bowling centers that expanded to include other popular activities like arcade games, laser tag and live sports on TV. Boondocks took a different approach, developing a successful mix of other indoor and outdoor family attractions first and then adding bowling to complement it.

Boondocks didn’t begin with bowling because the company’s initial expertise was in constructing such outdoor attractions as batting cages, go-kart tracks and miniature golf courses for FECs. Since its inception in 1986, the company has built more than 200 projects at FECs across the country.

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In 1993 Boondocks diversified into FEC operations, opening its first center in southern Utah. They followed it with a second FEC in Meridian, Idaho in 1998. The company became known for its comprehensive mix of indoor and outdoor family activities, ranging from go-karts and bumper boats to laser tag, arcades and soft play areas. Boondocks subsequently sold its first properties and by 2009 had evolved into three 10-acre FECs; two in Utah and one in Colorado.

Bowling entered the picture in 2009, when the company built its Kaysville, Utah FEC and wanted to add an attraction to boost revenues during colder weather. “Bowling becomes busy when our outdoor attractions slow down,” says Boondocks partner Damon Day, “and it’s a good anchor for our indoor attractions.” The Kaysville center has 20 full-size lanes.

In 2012 Boondocks installed 20 lanes at its Northglenn, Colorado location as part of an extensive renovation. Day says they will add bowling to their Draper, Idaho location in the future, but haven’t set a date yet.

The bowling facilities are stateof-the-art and feature Brunswick equipment including the Vector

scoring system. Bowlers can relax in contemporary couch seating and enjoy laneside food and beverage service.

There’s glow bowling of course, and multi-mask media screens that display music videos and sporting events in high-definition.

Boondocks’ guests have responded enthusiastically to bowling. Many guests include bowling as part of one of Boondocks’ package deals, some of which allow unlimited bowling. While it’s strictly casual play at Boondocks, a “Fun Club” program offers regular groups a ten-week “season” capped with an awards banquet.

Day takes a sophisticated approach to managing and building business at Boondocks. The Boondocks philosophy is based on creating a great guest experience, and great care is taken to give them the attractions they want and the exemplary service they deserve. As the attractions became more diverse, Day realized the need for IBI

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

Birthday parties are a prime example of what they wanted to do better. “With the traditional point-of-sale system we had,” says Day, “folks would check in and we would charge their credit card and send them off to have their party. It prevented the upsell opportunities 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 he liked their product and because they were willing to add features as Boondocks’ needs grew. David Goldman, CEO of Ideal and a pioneer of software for FEC management, welcomed the challenge.

“Damon has tremendous understanding on how best to run his facility,” says Goldman. “Ideal was proud to work with him to bring 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 38

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that its own customers or employees can get with a special promo code. Charities can offer discounted tickets as a fundraiser, with Boondocks rebating a portion of the proceeds to them.

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

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

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

The system also handles online sales of discounted tickets, a promotion that is popular with local businesses. The business arranges a discount 40

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experience at an FEC. More and better interactive attractions are also a big part of that trend, notes Day. Given the large menu of exciting choices they offer, Boondocks can expect to remain the center of fun for many families for years to come. â?–

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

By George McAuliffe

ENGAGING INTERVIEW

Interview with David Bardon With a successful modernization of one of his centers, David reflects on his business.

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

We operate four bowling centers in Wisconsin. The company started in 1993 when my Dad built a center in Elkhart Lake, which I later bought as an investment. My degree was in chemistry with a Master’s in Environmental Science, so I got in the business by accident. Once I did, I was having fun and started adding centers.

2. You recently modernized Olympic Lanes, tell us about that center.

Olympic was a traditional 36-lane center built in the 1950s in Milwaukee. We purchased it in 2002. Over the years, revenue was going the wrong way as leagues declined from about 35% of sales to 20%. It became clear that if this was going to be a significant center, then we had to do a serious modernization. As the process moved forward, we ran into design and cost issues which took us into 2011. That’s when JB’s on 41, the new Olympic Lanes, was born on paper. It physically 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 and Grill and modernized our game room. We removed one lane, created Suite 41, our 10 lane private boutique. We upgraded our remaining 25 regular lanes with new masking units featuring the Milwaukee cityscape, a new ceiling, ball returns, the latest Brunswick Vector Plus scoring system, flat screen monitors, and new Galactic (Cosmic) Bowling with a sound and lighting system 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 sound system and comfortable furniture. It is targeted to corporate groups and private parties. When not booked, it is used for open play for an hourly fee.

5. How important is the food and beverage piece?

Extremely important. The old Olympic Lanes offered a bar with frozen pizza and snack bar food presentation. A key step was recruiting our GM, Dave Kash, from the restaurant industry. The Junction has similarities to an Applebee’s, Bennigan’s, or Chili’s model with some of our own twists.

David Barden We now have a full kitchen to serve our 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 family entertainment attractions?

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

7. Any other wisdom you care to share for our readers thinking of modernizing or adding other attractions to their business?

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

David, thanks for sharing your time and thoughts with our readers. ❖ IBI

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