The Ultimate Guide to Opening an Arcade in Retail Street

What is an arcade?

An arcade, often known as an video game city or arcade game center, is a venue where patrons can driving games machine, claw machines, and other arcade games for a fee. Typically located in bustling areas like shopping centers or dedicated retail streets, arcades offer a social gaming experience that goes beyond the confines of home gaming setups. These venues thrive on providing a unique atmosphere filled with vibrant lights, sounds, and a community vibe that attracts both casual players and serious gamers alike.

In this guide, we’ll explore what it takes to establish such a vibrant arcade store and how to cater to a diverse crowd of enthusiasts.

The development history of arcades

The history of arcades dates back to the early 20th century when nickelodeons and penny arcades were popular entertainment spots, but the modern arcade as we know it began to take shape in the late 1970s with the rise of video games. Pioneering titles like Space Invaders sparked a revolution, transforming arcades into vibrant centers of digital entertainment. By the 1980s, during the golden age of arcade video games, iconic machines like Pac-Man and Donkey Kong could be found in nearly every corner of urban life, from dedicated game centers to local diners and malls. This era was characterized by a surge in popularity and cultural significance, embedding arcade games deeply into the fabric of popular culture.

As technology advanced, so did the complexity and appeal of arcade games. The 1990s saw the introduction of more sophisticated graphics and gameplay mechanics, including fighting games and driving simulators, which kept the arcade scene relevant despite the growing popularity of home consoles. Today, while the traditional arcade may have evolved, it continues to adapt, integrating modern elements like virtual reality experiences and interactive attractions to remain a beloved part of the entertainment landscape.

Location selection for opening an arcade

When selecting a location for your arcade store, prioritizing high foot traffic areas is crucial. Areas frequented by young adults and teenagers, who form a significant portion of the arcade’s target audience, should be at the top of your list. Look for locations near colleges, schools, or popular hangout spots that naturally draw in these demographics. Additionally, being situated in a bustling retail street can significantly boost visibility and accessibility, ensuring a steady stream of potential customers.

Within retail streets, aim for central locations, ideally at intersections, as these spots benefit from exposure to multiple streams of pedestrian traffic. Having an arcade storefront with entrances facing different streets can attract visitors coming from various directions, enhancing the venue’s reach and appeal. Such strategic positioning not only maximizes the arcade’s visibility but also leverages the synergy created by neighboring businesses, making it an integral part of a vibrant commercial district.

Cost of opening an arcade

Opening an arcade involves a variety of upfront and ongoing expenses. One of the primary costs is the lease or purchase of the premises. Rent for a prime location in a busy retail street can be substantial, depending on the size and visibility of the space. It’s essential to budget for utilities such as water, electricity, and broadband internet, which are necessary for operations and to ensure a seamless gaming experience for patrons. Additionally, consider the cost of marketing and promotion, which includes distributing flyers, collaborating with influencers for content creation, and promoting your arcade through videos and social media platforms.

Another significant expense is staffing. Hiring skilled employees to manage the facility, maintain equipment, and provide customer service is crucial. Besides salaries, you’ll need to account for employee benefits, which can include health insurance, retirement plans, and paid time off. Ensuring a fair compensation package will help attract and retain talented staff, contributing to the overall success of your business. Moreover, as a business owner, you must set aside funds for taxes, both operational taxes and any sales tax collected from customers.

Lastly, maintenance and repair costs are inevitable, even though new arcade machines typically come with a one-year warranty. Beyond this period, or for issues not covered under warranty, there will be additional expenses such as logistics fees for parts delivery, installation costs for new equipment, and labor charges for repairs. Planning for these expenses and setting up a reserve fund can help manage unexpected financial burdens, ensuring continuous operation without compromising the quality of service provided to customers.

3 reliable channels for purchasing arcade equipment

Alibaba.com

Alibaba.com is one of the best options as it is a global online marketplace that connects buyers with suppliers from all over the world. The advantage of buying through Alibaba is that you have access to a wide range of products and competitive prices due to direct contact with suppliers. However, dealing with international suppliers requires careful consideration of costs, product quality and after-sales service systems, as there is an old Chinese saying: “A big forest has all kinds of birds”, and some suppliers provide customers with the lowest quality products at the lowest price in order to obtain customer orders, and after-sales problems are endless.

In summary, while Alibaba.com provides a wide and potentially cost-effective solution for purchasing arcade equipment, it is important to thoroughly research suppliers, visit factories, and possibly order samples before making large purchases. Ensuring clear communication and understanding of the terms of sale can reduce risks and make the purchasing process successful.

Amusement exhibition

Trade shows such as the GTI Amusement Expo, IAAPA Expo, and the Asian Amusement & Attractions Expo are excellent places to source arcade equipment. Held twice a year (May, September), the GTI Amusement Expo showcases a wide variety of gaming machines and technologies, providing direct interaction with manufacturers. Similarly, the IAAPA Expo is the leading event for the attractions industry, showcasing the latest innovations in amusement equipment from around the world. Finally, the Asian Amusement & Attractions Expo focuses on the Asian market, showcasing a diverse range of gaming solutions tailored to regional preferences.

Attending these shows offers arcade owners several advantages. They provide an opportunity to see and test equipment in person, network with suppliers, and negotiate deals directly. Additionally, the expos can be a valuable learning experience, keeping you up to date on the latest trends and technologies in the industry. Overall, attending these trade shows can streamline the purchasing process and ensure that you choose the best equipment for your arcade.

Amusement equipment production base

Currently the arcade is popular all over the world, loved by young people, this is a very large consumer market, is a worthwhile investment in the industry. While purchasing arcade equipment, we expect that we will be able to add eye-catching arcade equipment to our own arcade store, and more player will love the arcade game machine.

Arcade organizers with free time can plan a trip to China’s largest amusement equipment manufacturing base (Panyu, Guangzhou, China), where there is a wide variety of arcade equipment, and surprisingly, you may find a brand new way of playing arcade game machines that are unavailable on the market, which will make your business plan one step faster compared to the arcade industry, and gain the love of players!

MAKER ARCADE as an arcade equipment manufacturer, our headquarter is in Panyu, Guangzhou, China, if you are interested in our manufacturing base, you can make an appointment to visit.

Conclusion

Opening an arcade in a retail street requires strategic planning. Choose a high-traffic area, preferably at a central intersection, to maximize visibility. Consider costs such as rent, utilities, marketing, staffing, taxes, and maintenance. Effective marketing includes both traditional methods and digital promotions. For arcade equipment, explore options like Alibaba International for competitive pricing or attend industry trade shows such as GTI Amusement Expo, IAAPA Expo, and Asia Amusement & Attractions Expo for hands-on product evaluation and direct supplier connections.

Lastly, by carefully selecting your location, managing expenses wisely, and sourcing quality equipment through reliable channels, you can lay a strong foundation for a thriving arcade business in a bustling retail environment.