Developing a Family Entertainment Center Budget

DEVELOPING A FAMILY ENTERTAINMENT CENTER BUDGETBe Realistic or Be Disappointed

By Peter F. Olesen, P.E. Too often, people start planning a family entertainment facility (herein referred to as FEC) with little or no realistic information concerning the costs involved.  We constantly hear from people with projected budgets under $100,000.00, because they have not obtained any realistic information prior to establishing their concept. There are no good reference books in the library to our knowledge that can realistically prepare newcomers for the enormity of their projects. Land costs for facilities can range from several thousand dollars and acre to more than $15.00 a square foot. The cost of constructing pre- engineered buildings can easily exceed $100.00 a square foot before equipping them with attractions.  Leasing floor space in existing malls or other buildings can easily range upwards from $2.50 a square foot to more than $20.00. A more costly site may be far more profitable, don’t skimp in the selection of your site. Remember, people don’t want their trip to an FEC to become an expedition.  Ease of finding your site is major requirement.  Check out the neighborhood.  Will your site be in an attractive well- lit location or in a rundown industrial park or neighborhood that will drive customers away rather than attract them?  Your site should be well lit from the point of access, in the parking lot and throughout your entire facility.  An important thing to remember is that you are responsible for security in your parking lot as well as within your building or in and around your outdoor attractions. Developing one's own business plan can easily take hundreds of hours or more.  While this is often performed as "sweat- equity", it still is a cost that should be considered.  Don’t forget the costs of design professionals, marketers, lawyers and other business consultants that you may require in order to have your house in order when starting your project. A large number of outdoor family entertainment centers include miniature golf, concession go- karts, bumper boats and relatively small buildings containing arcade/snack bar/office facilities.

Attractions to be included within a facility have a wide range of costs.  Many of these costs can be mitigated by purchasing used equipment, rides or attractions, renting or leasing equipment and other steps that may reduce the total initial fiscal impact, but they all have ongoing costs that must be considered.

There are a number of formats for establishing arcade and redemption game rooms that range from purchase to leasing, renting or revenue sharing.  While each has its advantages and disadvantages, they all result in either up front costs or ongoing expenses.  Proper planning in establishing the financing format, selection of specific equipment and developing a sound ongoing operational plan can result in significant revenues.

 Snack bar installations can range from less than $20,000 to more than $100,000.  They can be self- developed or developed in conjunction with equipment manufacturers, franchisers, food venders or by restaurant consultants.  Sometimes the planned magnitude of the food services may dictate the approach used.  In all situations, however, there are up front and ongoing costs involved.  Care should be taken in planning food operations.  If the site you plan to develop isn't a natural location for a restaurant, don't expect a fun center to create the volume of traffic required for success.  What I'm trying to say is know your market potential before getting carried away.  Most FECs do not generate average stays that result in a high food demand.  A good practice would be to keep it simple until actual experience and customer requests define the need for expanded facilities and menus. Batting cages in many areas are very seasonal in their heavy usage.  Care should be taken when developing projected revenues for a given site.  Should you decide to develop a batting cage facility you should be aware that there are two basic systems available and that each has its supporters.  These are the pitching arm machines and the wheel systems.  Batting Cages can easily cost $170,000 or more when multiple bays and multiple pitching machines are planned. For most locations, a family road course would be the first choice, as they have the largest target market and better serve a total family entertainment center environment.  When the market is large enough and your budget and available space permit, additional specialty tracks can be added to the site mix to further increase revenues.  These can include “adult slick road courses”, High banked ovals or tri- ovals, rookie tracks and kiddie tracks. Concession go- kart tracks can be assumed to cost in the range of $230 to $280 dollars per foot, depending on their length (this includes grading, paving, barrier system, lighting, pit facilities and canopy and perimeter fencing.  Karts can run from slightly under $4,000.00 to more than $5,000 each for gasoline powered karts (depending on the type, style and horsepower) and from $5,000 to more than $7,000 for battery powered karts.  Rookie tracks and kiddie tracks would be less expensive. Electric bumper boats are become the accepted standard because of their clean operation and environmentally friendly design.  Bumper boat ponds will cost from $125,000 and up when equipped with 8 or more boats, fiberglass liners, water filtration and treatment equipment, safety fencing and lighting.   Miniature golf courses can range from small budget courses (costing $90,000 to $200,000) to major adventure golf facilities in the multi- million dollar range.  The more common price range for family entertainment center golf courses is from $220,000 to $500,000, other than in heavy tourism areas where the sky is the limit. Many smaller outdoor attractions can be added to the primary mix that cost in the area of $30,000 to more than $100,000.  These include bounce attractions, WaterWars, shooting galleries, carousels and other flat rides and various other small attractions. 

Indoor attractions can include electric go- karts (for air quality and performance) bumper cars, miniature lane bowling, soft play, laser tag, arcade games, miniature golf courses, flat rides, inflatables, trains, mini- coasters and related attractions.  None of these attractions are inexpensive (other than inflatables), with individual elements costing up to $200,000 and more. In establishing budgets, don’t forget the cost of your land, or rental, the costs for insurance, marketing, salaries, utilities and related costs that have a strong impact on your bottom line. When determining start up costs, these elements must all be taken into consideration. Peter is a registered Professional Engineer in numerous states and President of Entertainment Concepts, Inc., 126 South Bobby Lane, Mount Prospect, Illinois 60056. The firm provides consulting services to Concession Go- Kart and Family Entertainment Center clients.  Projects span 41 states, Angola, Brunei, Canada (Alberta, British Columbia, Ontario  and Quebec), Cuba (Guantanamo Bay), Kazkhstan, Mexico, Puerto Rico and Saudi Arabia.  Services range from preliminary site evaluations, feasibility studies, concept development, master planning, design and construction engineering services for projects that include concession go- kart tracks, miniature golf courses, indoor and outdoor family entertainment centers and theme parks.  These services apply to new facilities as well as renovation or expansion of existing facilities.  Mr. Olesen has written many magazine articles on the industry and has made presentations at numerous industry seminars. For more information on the firm and the services it offers, see their web page at www.fec-design.com, contact them at [email protected] or call at 847-561-7013.© Copyright: Peter F. Olesen

FAMILY ENTERTAINMENT CENTERS

AND THEIR POTENTIAL FOR SUCCESSBy Peter F. Olesen, P.E.

 This article is written to bankers and other potential investors reviewing an application for financing a proposed family entertainment center (FEC) project.  Our firm has developed feasibility studies for a number of proposed FEC projects over many years.  We have provided design services for many more. As a firm that has been involved with the development of feasibility studies as well as final design for a wide range of family entertainment centers throughout the United States, we have observed first hand the success of well- planned family entertainment centers of all sizes.  The average family entertainment center has proven to be very successful, when properly planned and operated by dedicated owners or professional management staffs that recognize the need for service and quality.  Unfortunately, we have also seen many well- conceived and feasible facilities turned down because of an apparent bias against the industry that is not wholly deserved. People that have researched the industry, obtained valid demographic data, obtained a feasibility study and developed a clear and valid business plan, should not be lumped together with others that failed to effectively research the industry, their market, the competition and their location.  Those who failed, were almost always the ones that did not establish a realistic concept, select a viable site in terms of access and surroundings, did not have a feasibility study or prepare a realistic and comprehensive business plan.  Many of these same people also failed to follow the basic concepts of developing sound attraction mixes, good design, sound hiring practices, staff training, guest relations, cash control, marketing and site upkeep.  Some even developed what they personally liked or wanted to develop without giving first consideration to what their market wanted.  Unfortunately many in the banking industry appear to take a very dim view of the entire family entertainment industry based on some valid but short sighted reasons as a result of specific but not industry representative failures.  The failure rates for certain specific ventures should be of concern to investors and bankers.  Each probably had very obvious reasons for their failure. Most were specific to the location concept, operation or marketing, not due to the industry. Unfortunately this has caused many bankers to lump the entire industry into the same model, with the result that they may not seriously consider many fine investment opportunities, resulting in the demise of a number of excellent projects due to lack of funding. A number of specific industry failures have gained the attention of bankers and other investors. Unfortunately, most if not all are prime examples of poor planning in evaluating a market, selecting specific venues and bad management.  We feel that they should not be considered indicative of an industry that is not successful. These include the following: 

The Discovery Zone Syndrome   

Originally the concept was successful because it offered a new soft- play venue at a time when there were no competitors.  McDonalds originally created a large number of similar facilities called Leaps and Bounds.  They ultimately sold their Leaps and Bounds to Discovery Zone and then began installing free soft play facilities at many of their conventional McDonald’s fast food outlets.  This was accompanied by other similar installations at other fast food operations. As a result, the narrow concept of Discovery Zone became victim of the free alternatives (albeit smaller in size) that sprang up all over.  Being a “one trick pony” so to speak, based on a narrow demographic and basically a single attraction, Discovery Zone was doomed to fail because they had created a single attraction concept and were unable to change their concept to compete. 

Childrens Entertainment Centers Developed on Emotion Many well- meaning entrepreneurs opened independent children’s entertainment centers in large and small communities alike, without thoroughly evaluating their real target markets, the locations they selected and the on- going need for updating programs and attractions.   Wanting to create a better environment for small children and their parents is a worthy intent and motivation.  Unfortunately many have been developed without any realistic analysis of the actual volume of potential business, resulting in many facilities failing because there was never a large enough market to support the facility developed.  The people that developed many of these were totally dedicated to the concept and worked hard to make them succeed.  Their failure was not recognizing that even the best of concepts and programs could fail because the community has too few potential customers to make the project financially valid. 

Targeting “Adult” Market with Family Attractive AttractionsThis mistake has been made a number of times and resulted in failure.  Typical family oriented attraction packages should be conceived, configured and operated in a fashion that can maximize the attendance and thru- put at individual attractions. A good example of this would be the Malibu Worldwide Entertainment Speed Zones in Dallas Texas and City of Industry, California.  These facilities failed to meet their potential because they sought to create an attraction that would attract a large adult business.  They combined a narrow game room mix with a wine and beer bar and full service restaurant and restricting evening attendance after 9:00 PM to adults 18 years of age and older.  A greater emphasis on family attendance could perhaps have made the facilities far more successful. 

“Our town has nothing for the Kids to do!”This lament is heard for almost every community in the land, and it is true in almost every community to one extent or another.  Many communities have well planned and financed programs for team sports, i.e. little league baseball, soccer, midget football and basketball programs.  By and large, they have few if any programs targeted toward the 70 to 80 percent of the children and young people in the community that have no interest in team sports, either because they may not be athletic or do not like the competitive stress in team sports. 

People often feel that their community is the ideal location for facilities that address this lack of activities for young people.  What they often fail to do is thoroughly evaluate the community’s demographics to determine whether there are sufficient numbers of people that could be attracted to their proposed facilities to make them financially feasible. Unfortunately, not every community is large enough or has the right demographic mix to support family entertainment centers.  This reality has been ignored or downplayed in many instances, resulting in facilities that were well intentioned and even excellently operated, but were just the wrong idea in the wrong place. 

“Build It and They Will Come”This concept worked in the movie because it was written into the script.  Without determining the need, the market and the feasibility; as well as the location and the requirement for constant marketing, many facilities were doomed to failure, even prior to opening.  The market is full of establishments seeking to attract the disposable income and time available to the typical member of society. 

Failing to Plan is Planning to FailThis adage is so real and has been proven out time and time again.  Unfortunately many people seem to think that because an idea sounds good, it will succeed.  This applies to almost all endeavors, regardless of industry.  Proper evaluation of the concept, potential market, available financing, market realities and proposed site could greatly reduce if not eliminate the potential for failure in many cases.  Conversely, failing to do so almost certainly dooms many projects with good concepts to failure. 

A sound Business Plan Deserves a fair reviewInvestors should take a realistic look at the specific business plan, master plan and feasibility study presented for consideration with an open mind.  The attractions proposed for family entertainment centers, by and large, are proven to draw significant business from most communities.  If the feasibility study demonstrates a strong potential for success, it should warrant a close and unbiased review.  Don’t automatically discard a proposal as not being realistic because of mistakes made by others.  The industry is alive and well, with many success stories.  Peter is a registered Professional Engineer in numerous states and President of Entertainment Concepts, Inc., 126 South Bobby Lane, Mount Prospect, Illinois 60056. The firm provides consulting services to Concession Go- Kart and Family Entertainment Center clients.  Projects span 41 states, Angola, Brunei, Canada (Alberta, British Columbia, Ontario and Quebec), Cuba (Guantanamo Bay), Kazakhstan, Mexico, Puerto Rico and Saudi Arabia.  Services range from preliminary site evaluations, feasibility studies, concept development, master planning, design and construction engineering services for projects that include concession go- kart tracks, miniature golf courses, indoor and outdoor family entertainment centers and theme parks.  These services apply to new facilities as well as renovation or expansion of existing facilities.  Mr. Olesen has written many magazine articles on the industry and has made presentations at numerous industry

seminars. For more information on the firm and the services it offers, see their web page at www.fec-design.com, contact them at [email protected] or phone them at 847-561-7013.© Copyright 2012: Peter F. Olesen

RECOMMENDED INDOOR AND OUTDOOR

CONCESSION GO-  KART TRACK

INSPECTION PROCEDURES

(Also applicable to indoor "racing " venues)

* Daily Track Inspection Before Opening Track to Public. 

* Daily Track Maintenance Prior to Opening Track to Public.

* Reasons to Shut Down Track Operations. 

* Inspection Prior to Opening Track and Prior to Start of Each Season. 

* Track Maintenance to be performed Prior to Opening Facility.

These recommendations refer to the physical track, barrier and related elements.  They do not contain references to the inspection of the go- karts. 

Prior to developing a complete set of inspection checklists or procedures for use at your facility, please incorporate any additional procedures that may be required or recommended by your State or local agency having jurisdiction over your facility, by your insurance carrier or go- kart manufacturer.

Go- Kart Track Inspection Procedures 

A safe concession go- kart track facility requires not only the daily and weekly inspection of the go- karts and electronic kart control systems but

also an inspection of the track, pit area and barrier systems as well.  We recommend the following procedures be instituted at all tracks on any concession go- kart facility. 

DAILY TRACK ISPECTION BEFORE OPENING TRACK TO THE PUBLIC:

Walk the entire length of the track and pit area. Pick up any debris lying on the track, including behind the barrier rail.

Check for broken rail elements, including butt welds and backing plates.

Check for loose or broken tire anchors on rail, curb or anchor brackets. Check for loose or missing bolts and nuts on track barrier system.

Not kinks in barrier rail, failed tires or other damage. Inspect track surface for broken pavement, new cracks, etc.

Check spinner tires for correct air pressure (5 psi Maximum) and proper spin.

Check pit area track gates for condition and functioning gate locks. Check queue line gates, turnstiles, fence and rails for condition.

Check all "D" rubbers or other non- tire offsets for cracks or failures. Inspect all drainage openings.

Check perimeter fence. Check steel rods anchoring tires for bent rods and/or cracked concrete.

Check any audio system used to provide instructions to drivers. Check Track safety lights, track and pit lighting.

Check that all fire extinguishers are properly charged and in correct locations.

Check electronic kart shut- off units and operator controller for proper operation.

Check each kart for leaks, functioning controls, brakes, bumpers, tires, seat belts, etc.                     

Karts, remote shut- off systems and audio systems shall be checked and maintained in accordance with manufacturer's recommendations.

A check sheet containing the above elements should be filled out each day. This is to assure due care in maintaining a safe facility and, being prepared in the event of future litigation.

For tracks equipped with battery powered go-karts all of the above items apply.  In addition all battery charger should be checked to see they are functioning in accordance with manufacturers specifications and instructions. Individual batteries shall be checked for proper charge and those found to be deficient, removed and replaced with properly charged units.  Also check all controllers,  track charging plates, cable units, kart pickup contacts and related  elements in accordance with kart manufacturer's specifications. 

DAILY TRACK MAINTENANCE PRIOR TO OPENING TRACK TO THE PUBLIC:

The following steps should be taken each day, prior to opening the track for operation.

Blow, sweep or vacuum the track surface and barrier area to remove debris, etc.

Remove any water on the surface of the track and pit area. Repair broken items found in the above daily inspection

Straighten serious kinks in the barrier plate and replace any failed tire units.

Tighten loose nuts and replace missing bolts or nuts on the track barrier system. 

REASONS TO SHUT DOWN TRACK OPERATIONS

Guest and staff safety on the track should be paramount.  An operator must be committed to maintaining as safe a facility as possible.  Under no circumstances should he/she operate a track with the following existing conditions.

Broken barrier rail joints and failed sections of barrier anchorage Failure of lighting system during evening and night time operations

Serious incidents on the track Any pavement failures or chuck holes developed on the driving surface

Fuel spills Rain

Standing water on the track Heavy deposits of dirt, leaves or other debris that may affect control of

karts Unsafe go-karts

INSPECTION PRIOR TO OPENING TRACK AND AT START OF EACH SEASON 

Inspect all welds, anchor bolts, hinges, pivot pins, gate elements and anchors, tires, fence and any other physical elements associated with the track barriers, queue lines and fencing. 

Inspect pavement surface for cracks, open joints, potential or existing chuckholes and surface raveling along the edge of pavement joints. 

Inspect all exposed wiring for frays or cuts in insulation.

Check all instructional and safety signs for visibility and correctness of placement. 

TRACK MAINTENANCE TO BE PERFORMED PRIOR TO OPENING FACILITY 

Repair all weld problems. Tighten all bolted connections.

Repair all anchor problems. Remove all broken pavement and replace with sound Portland cement

concrete patch. Remove and replace all torn, overly weathered or defective tires from

the barrier system. Replace any missing safety elements.

Clean and repaint any spalled painted elements. Clean and update all track signs.

Clean out all drainage elements on the track and in the pits.

 It is also important to determine whether your specific state, county or local agency agency having jurisdiction over the facility has any specific documentation requirements.  If so, these must also be addressed in your inspection and maintenance procedures. It must be understood that all problems identified during the initial inspection and maintenance procedures must be corrected prior to opening the facility. Any items identified during the daily track inspection that could result in a hazard to the patrons or the staff, riding on the track or standing nearby must be remedied prior to the daily opening. NOTE:The above listed elements are what we consider to be the minimum recommended procedures to be followed in concession go- kart operations. Your insurance carrier may recommend or require additional steps to provide maximum protection against injury claims. It is important that each track owner/operator have written policies for the track staff to follow in terms of site and equipment inspection.  These coupled with check sheets signed by each employee responsible   for specific maintenance inspection or maintenance operation.  Many track owners involved with litigation have benefited from having the proper "paper trail" in litigation situations.  Many who did not maintain and record their procedures have suffered the consequences. 

Check with your insurance carrier(s) to see if there are additional preventative maintenance type actions that can help reduce injuries and possible litigation. Peter is a registered Professional Engineer in numerous states and President of Entertainment Concepts, Inc., 126 South Bobby Lane, Mount Prospect, Illinois 60056.  The firm provides consulting services to Concession Go- K art and Family Entertainment Center clients.  Projects span 41 states, Angola, Brunei, Canada (Alberta, British Columbia, Ontario and Quebec), Cuba (Guantanamo Bay), Kazakhstan, Mexico, Puerto Rico and Saudi Arabia.  Services range from preliminary site evaluations, feasibility studies, concept development, master planning, design and construction engineering services for projects that include concession go-kart tracks,  miniature golf courses, indoor and outdoor family entertainment centers and theme parks.  These services apply to new facilities as well as renovation or expansion of existing facilities.  Mr. Olesen has written many magazine articles on the industry and has made presentations at numerous industry seminars. For more information on the firm and the services it offers, see their web page at www.fec-design.com, contact them at [email protected] or phone them at 847-561-7013.© Copyright 2012: Peter F. Olesen

INDOOR CONCESSION GO- KARTING 2012 PERSPECTIVEBy Peter F. Olesen, P.E.

 The picture for indoor go- karting continues to grow brighter as electric (battery powered) karts continue to evolve and better batteries come on the market.  These karts offer the ability to be flexible in speed ranges and seating adjustments.  This permits the karts to serve multiple experience and age groups with a single set of karts.   Adjustable seats, thick seatback cushions and the ability to set lower speeds, enables the facility to address birthday party groups (a fantastic market), family groups and the testosterone groups all on the same equipment and track.  This has opened up the potential for profitability in many markets where the adult market could never support the concept. Understanding Financial Realities:The first issue any person planning to develop a go- kart/family entertainment center facility is how much will it cost and how will you get the money.  I will briefly state some of the realities that must be faced prior to your embarking on a very challenging journey. The cost of constructing a building can easily run from $60.00 to $100.00 per square foot (or more), excluding the attractions and amenities that will be installed in it.  This is excluding the cost of the underlying real estate.  Leasing rates can run from $2.50 to more than $20.00 per square foot, depending on the location of the building.  Again this does not include the cost for the attractions and amenities to be installed in it. Each situation is different, but for the vast majority of the projects that will be undertaken, outside capital infusion is absolutely necessary.  This can be done in many different ways, including banks, venture capital, investors or partners.  Each of these sources comes with specific requirements, advantages and disadvantages.  It is important that whichever avenue you follow, you be knowledgeable of the personal commitments and requirements you will be required to address.  If financing is not your specialty, don’t hesitate to get help; there is too much riding on your making certain you are making the most advantageous choice in borrowing money.  This article is not written to tell you how to find your financing, as I am not a financial advisor. 

Establishing a Facility Concept:The first thing everyone should consider is the fact that you are not your customer or guest. Not everyone thinks like you.  To be successful you must present to your potential market an attraction that will appeal to them and bring them back again and again.  Failure to do this has resulted in many projects failing, because too little attention was given to how to attract the maximum number of guests and resulting revenues. Over the years I’ve talked to many people who want to create the indoor racing facility of their dreams.  This usually involved an “adults only” environment and high- speed karts.  This is great when there is a very large market and the program is marketed correctly.  In reality, most communities have a limited number of individuals that are committed to indoor competition

karting for “adults only”.  Even worse, many of those abandon the indoor facilities once the outdoor competition tracks open for business.  I am not saying there won’t be individuals that will want to run indoors throughout the year. The problem is, experience has shown, that in many cases the attendance during the summer periods drops off to the point where the facilities cannot survive.  This is true except in areas where prevailing weather conditions prevent the outdoor activities.

Starting a new venture is not inexpensive, even if you are only planning a single attraction facility.  The reality of working with a single attraction is that you will immediately define a smaller target market.  For many communities, this would doom most single attraction facilities to failure once the initial excitement and attendance passes. There are many failed indoor go- kart tracks around the country.  Many were in markets that were too small and the facilities never had a chance.  In other instances, had the planning recognized the benefits of expanding the concept to include added attractions and a different marketing program, the projects could have succeeded. Everyone planning to start a facility should give serious consideration to the benefits that can be gained by broadening the facility concept to incorporate additional attractions that can draw from a much wider age demographic and bring sufficient numbers of guests to the facility year after year. The advent of electric (battery powered) concession go- karts has opened a number of possibilities for expanding the operations of indoor facilities.  These karts can be operated at a number of set speeds that can be changed by the push of a button on the track supervisor’s controller.  This permits the use of the karts for league operations for the “testosterone crowd” as well as for family operation and even rookie drivers in the birthday party market (which has proven to be one of the most successful marketing programs in the family entertainment industry). Schedules can be established whereby all the different market groups can be served.  This is not a new concept.  It has been proven in many indoor facilities as well as outdoors. By expanding the concept to include more attractions, your target market can be greatly expanded and result in greatly increased revenues and ultimate success.  Lack of a varied mix of attractions can result in long periods of the day with little or no action within the facility. This doesn’t do your overhead any good, as you require staffing when you are open, even when there are no guests present. Determining Space Requirements:Each attraction requires a certain amount of space, not only for its own occupancy, but also for walkways, point of sales and redemption, food services, offices, maintenance, storage and restroom facilities.  When considering the space requirements of your proposed facility, the support elements are of as much importance as the attractions themselves. 

Proper location of the individual attractions within the facility can result in significant increases in impulse sales, which again impact on the bottom line. It is important for most facilities to recognize the potential benefits of having a proper location and sufficient space to accommodate more than a basic oval track.  Too simple a track configuration can result in low repeat rides and visits.   We highly recommend that a minimum of 18,000 square feet of floor space be provided for an indoor concession go- kart track.  This permits creation of a more realistic road course design with challenging geometrics, rather than an oval which will not result in a high number of repeat rides from adult riders. At the present time our firm is finishing indoor road course track designs in areas of more than 20,000 square feet for several indoor facilities.   The clients at these facilities have done their homework and recognize that indoor electric go- karts can serve as a magnet for their facilities and generate sound revenues.  They also recognize that within each of their specific markets, there is a desire for facilities that are multi- faceted and can draw a larger audience with a combined mix of attractions. Each of the above facilities has a very different mix of attractions and a different approach to food service. They are carefully laid out to address birthday parties, corporate team building and other group events.   Existing Building Vs. New Building:It costs more to construct a new building, and many developers of concession go- karting and family entertainment centers have a difficult time obtaining sufficient financing to build a new building.  The costs of new construction can easily surpass $100.00 per square foot, excluding the underlying cost of the land. On the positive side, a new building can be designed to more efficiently accommodate the proposed track and related attractions, can result in lower energy costs and be designed in a way to permit an easy change to a new use (exit strategy), in the event the project does not go as planned. Constructing a new building provides the opportunity to create a facility at locations that do not have existing buildings available.

For most new developments to-date, the process has been to find existing buildings and to accomodate the attraction design to the realities of the specific building being renovated.  There are many issues to be considered when looking at existing buildings, including existing zoning, possible building code issues, available usable space, dimensions of usable space, column spacing, condition of floors, restrooms, existing HVAC, electrical service, parking lot capacity and condition, exterior lighting and related issues.

We recommend that you obtain legal advice on any leases you enter into, especially in terms of the termination of the lease in the event you cannot get proper zoning or in the event the facility does ont perform as intended. This applies to your financing arrangements as well.

Creating an Image and Marketing:You never get a second chance to make a first impression.  This starts with the exterior of your building, signage and parking lot.  Be ready before opening up.  This applies to your indoor attractions and amenities as well. The cleanliness and appearance of your facility and the appearance and behavior of your staff (they represent you in the eyes of your guests) become part of the first impression guests have of your facility.  Staff members should always treat people as guests, not customers.

Each employee must be made aware of the importance of their appearance and the fact that they are an important part of your operation.  They should be trained in how to interact with your guests and the rest of your staff, as well as how they treat your equipment.  Remember that it is important to reinforce your staff training with periodic updates to assure that they retain the information that is important to their success as employees

Develop an efficient marketing plan that gets your message to the people you wish to attract to your facility.  This doesn’t mean creating a gigantic marketing program, but rather using sound judgment in how you seek to encourage people to visit your facility.  Observe how others attract their guests and emulate their efforts if you think their methods work

Electric (battery powered) Concession Go- karts:The past few years have seen the development of a large number of battery powered concession go- karts in the American market.  The manufacturers are beginning to see the value of floor pick- ups for recharging karts in the pits.  There have also been advances in the motors, controllers and related system elements.  More importantly for many, the prices of the karts are dropping closer to the cost of gasoline- powered karts

When discussing karts with their manufacturers, keep in mind the fact that they are in the business of selling karts.  For that reason, it is important to have a bunch of questions ready for them to assure yourself that the information they give you is factual.  Find out the names of a number of existing track operations that are using their equipment and don’t hesitate to contact them.  Find out how the equipment works, are there any maintenance or safety issues that have not been effectively dealt with, have they had any problems in obtaining insurance and other questions that you personally want to have answered. 

Pay close attention to evasive answers and non-answer.  There may be some undesirable information out there that a given manufacturer doe not want known.  This does not imply to deep dark secrets. but rather to poor customer service, long delays in shipping parts, reluctance to accept responsibility for faulty parts and related issues.   

Building a Project Team:Before anyone proceeds too far along the path toward developing an indoor facility it is important to recognize the importance of having an experienced project team that can provide advice and guidance in bringing your dream to reality. Your team should consist of advisors or consultants with experience in the design, financial and legal aspect of the project you wish to undertake.  Using professionals can result in extensive cost savings in terms of avoiding costly mistakes that can rage from selecting a market that can’t support your project, choosing a site that is in the wrong location or is not suitable for construction, getting involved with unscrupulous financial partners, selecting the wrong attractions and purchasing the wrong equipment.

 Experienced consultants should be able to save you money, not cost money.  For most projects, the use of good consultants will result in savings that far outweigh their fees.  Check out whomever you use just as you would the karts and equipment you plan to install. Be judicious in whatever decisions you make.  Remember, real estate agents, kart manufacturers and suppliers of other entertainment equipment, as well as consultant’s all have certain personal interests that may not be quite the same as yours.  Check out your options, develop your own criteria, check references, visit facilities that have operated for a number of years and ask questions as to why some are successful while others fail.  Most important, try to step back from your proposed project and be as honest as possible in making your choices.  Remember, dreams can turn into nightmares and failing to plan is planning to fail.  Make sound, realistic decisions, you will be living with the results.  Good luck and may you be successful.

 Peter is a Licensed Professional Engineer in numerous states and President of Entertainment Concepts, Inc., 126 South Bobby Lane, Mount Prospect, Illinois 60056. The firm provides consulting services to Concession Go- Kart and Family Entertainment Center clients.  The firm has completed more than 420 projects in the family entertainment field, spanning 41 states, Angola, Brunei, Canada (Alberta, British Columbia, Ontario and Quebec), Cuba (Guantanamo Bay), Kazakhstan, Mexico, Puerto Rico andSaudi Arabia. Services range from preliminary site evaluations, feasibility studies, concept development, master planning, design and construction engineering services for projects that include concession go- kart tracks, miniature golf courses, indoor and outdoor family entertainment centers and theme parks.    These services apply to new facilities as well as renovation or expansion of existing facilities.  Mr. Olesen has written many magazine articles on the industry and has made presentations at numerous industry seminars.   For

more information you can contact him by phone at 847-561-7013, e- mail him at [email protected] or visit the firm’s web site at www.fec-design.com

Copyright 2012: Peter F. Olesen

IT TAKES TIME

You won’t be open next week!!

By Peter F. Olesen, P.E.

 Too often we encounter people that have a project they wish to develop and feel that they can be up and running in several months.  Having provided consulting services to clients on more than 420 projects in the family entertainment sector alone, we have found this to be unattainable in almost every situation.  To take a project from initial concept to construction requires a number of specific steps that may vary slightly from community to community, but all have specific time requirements that stretch out the total time required to

get to the point of breaking ground and completing the project.

Important steps in moving from Dream to Reality:

Each project will face individual challenges that may vary from project to project.  There are, however, many situations that must be addressed in most situations.  These include the following:

1.      Defining your dream

2.      Establishing personal commitment

3.      Becoming familiar with the industry

4.      Building a project team

5.      Identifying a project site

6.      Preliminary investigations

7.      Determining the suitability of the site

8.      Developing Concept Plan and Finalizing Proposed Attraction Mix

9.      Quantifying project space requirements and costs

10.   Establishing feasibility

11.   Developing Business Plan

12.   Determining financial capability

13.   Verify local codes and ordinance compatibility

14.   Developing community support

15.   Commencing review and approval process

16.   Final design

17.   Selection of specific equipment

18.   Hiring and training staff

19.   Establishing security program

20.   Selection of Contractors

21.   Controlling construction

22.   Preparing for opening day 

Depending on the results of the above elements, there are several additional steps that may occur at any point in the above process.  These may include one or more of the following:

       Revising original concepts

       Seeking a second location

       Overcoming agency or community objections

       Finding alternate financial support

       Rebuilding or revising project team 

1.  Defining your Dream:

Before you move from a starting point, you should have a clear picture of what you are seeking to undertake.  The overall process in moving from concept to operation can be a long and daunting experience

if an individual doesn’t get organized in the beginning. 

2.  Establishing Personal Commitment:

Anyone entering into the family entertainment industry must recognize that it takes a lot of time.  Most facilities are open 10 AM until 9 or 10 PM during the week and until 12 PM or later on Friday and

Saturday during the busy season.  For outdoor facilities this can range from 6 to 8 months a year, while indoor facilities may have those operating hours year around.  If you are planning to operate a small

facility, you may be pulling those hours yourself.  Obviously having more than one senior management person in the organization can dilute those hours into a conventional workweek, but don’t count on it.

 This is an industry that thrives on personal commitment, as this is the only way a facility can provide an entertaining experience.  Without management commitment there will be no employee commitment and the

resulting lower morale and performance results will be very disappointing.

3.  Becoming Familiar with the Industry:

Before venturing into the industry and committing yourself and your finances to it, make a strong effort to really know what you are going into.  It’s more than collecting revenue.  It requires strong ownership

and/or management effort in order to succeed.   It includes visiting existing facilities and talking with their staff and management.  You should attend tradeshows and seminars to become more aware of what is

available in the industry.  Take every opportunity to meet other individuals in the industry in order to get to know the individuals with whom you can network.  Join the International Association of Amusement Parks

and Attractions (IAAPA), which is the major active organization associated with the industry.  They hold annual an trade show with accompanying seminar programs and have publications that can be useful as

resources. 

For a detailed introduction to the industry and the various issues you will face, this writer also recommends attendance at Foundations Entertainment University (www.foundationsuniversity.com), which is a 2 1/2

day seminar covering the family entertainment industry in terms of a concentrated program spanning concepts, feasibility, financing, design, operations, staffing and cash control. It is held three times a year in different cities.  Attendees receive a 200+ page manual and a CD, which will serve as your guide for years

to come.

It would also be informative to subscribe to Tourist Attractions and Parks magazine.  It presents a broad range of family entertainment industry articles each month.  IAAPA publishes a monthly magazine, Fun

World.  For game room and vending information there are Play Meter, RePlay and Vending Times magazines.

4.  Building a Project Team:

It is important to surround yourself with the best project team available.  This includes design consultants, financial advisors, attorneys and related specialists that can guide your project in the right direction.

Selection of Feasibility Consultants:

There are firms that specialize in feasibility studies for a wide range of projects and there are firms that specialize in family entertainment center (FEC) projects.  The FEC industry is a “cottage industry” in that it

is small and is comprised of many very specific and diverse concepts.  It is important that the consultant you select be versed in the FEC industry, in order to make a realistic projection in terms of market

penetration, selection of attractions and capital costs.  This is acquired information based on experience.  There are no detailed handbooks to use for reference in developing feasibility studies.  Because of the

variability of attraction mixes, demographics, transportation networks, construction costs and operating philosophies, feasibility studies are subject to many judgment calls that rely on the experience and expertise

of the people performing the work.  This is not meant to imply that there aren’t firms with sound track records in making projections for FECs.

In performing feasibility studies, the people making the projections must weigh all of the above mentioned elements as well as making a determination of the skills, commitments and judgment of the client in

determining how well the project will be marketed, the quality of the attractions that will be developed, the selection of staff and the training and operating philosophy that will be followed.  Without a sound

background in the industry, the persons making feasibility analyses would be seriously handicapped.  When selecting a feasibility consultant, make certain they have a background in the FEC industry.  Don’t be

afraid of asking for references.

The last thing a client needs is a consultant that never met a bad project.  If your project isn’t feasible, the consultant must make you aware of that fact.  It is easy to anticipate that everything will go right and that

there won’t be pitfalls along the way, in terms of weather, economic down turns or other unexpected incidents that can impact on your bottom line.  It is important that any long-range projections give consideration to possible reductions in attendance and resulting reductions in projected revenues.

Selection of Design Consultants:

A good design consultant is absolutely necessary to assure maximizing attraction entertainment value.  Just as excellent design can assure maximum return visits, poor or mediocre design can result in lower guest

satisfaction and reduced return visits.

A stunning appearance may draw the first time guests, but repeat visits depend on the entertainment value of the attractions and the relative satisfaction the guest feels with his experience.  A guest that is satisfied with his/her experience is likely to tell a few friends, while a person that has had a bad experience (be it

because of poor customer service, mediocre or poor attractions or other reasons that weren’t satisfactory) tells everyone that will listen.

There is no “one design fits all” solution to creating entertaining facilities.  Nothing has to be the highest, fastest, longest or most challenging in order to provide a good experience.  It is important to create designs

that are entertaining and/or exciting in order to trigger the positive guest response. 

Good designers can incorporate sound design concepts into a project and still work within reasonable budgets.  Unfortunately, some elect to keep using designs that may have been satisfactory twenty years ago,

but have become boring in comparison with modern design.  Modern guests are far more experienced in what constitutes a good experience as opposed to a boring one.  As a result their expectations are high.

 Good design firms will have worked on a variety of concepts and facility configurations.  They have the benefit of experience and a thorough knowledge of the industry, trends and equipment, as well as reality

checks as a result of the projects they’ve already designed.

In selecting a consultant, check their references and if possible visit one or more of their completed projects. Discuss your concepts and ideas to determine if you communicate well with each other.  Discuss how they propose to assist you in reaching your goal(s). Establish a comfort factor, as being compatible is

very important to the overall success of your project.

A good design consultant will benefit you in several ways.  In terms of design and construction, they can provide better designs and realistic budgets that will result in construction cost savings and increased

revenues. 

Additional team members:

In addition to the consultants that can guide you through the industry specific elements of your project, you will need an attorney for business element legalities; a local engineering/survey firm to obtain the site topography and coordinate work with local highway, drainage and public works agencies and related

general civil engineering services and possibly a financial advisor to assist in developing a business plan, contacting potential investors and in general, assisting in the financial elements of the project.

5.  Identifying a Project Site:

If you don’t already own the property you plan to develop, the selection of a site is of prime importance.  It must be in a market that can support it, in a location where people can easily access it in terms of local

roads and area highway systems.  People will not search for a facility; they want the route to be easy and uncongested.  The site must be visible from the access route and access onto the site should be easy and

safe.

One of the most critical elements of a successful project is the location of the facility.  Failure to locate the site on a buildable site in a location that is easily reached from your target market can result in complete failure, even if the concept is feasible.  Visibility from a freeway may not mean that people can leave the freeway and find your site.  A site may be suitable from a construction standpoint, but local regulations (drainage concerns, easements, neighbors and access restrictions) may well create stumbling blocks or

complete barriers against obtaining approvals.

The site must have the proper zoning or be easily rezoned.  It must be large enough to accommodate your concept, with room for expansion.  It must not be a wetland, be located in a floodway or floodplain or have

unsuitable soils.  Many jurisdictions have very restrictive regulations regarding stormwater detention, sanitary systems, removal of trees, noise and light “pollution”, hours of operation and related local

concerns.

Much of the above site related information can be obtained from the local jurisdiction planning or engineering staff.  Don’t purchase land without having done your homework regarding the impacts the

above concerns may have on your site’s suitability.

For many rural or suburban sites the availability of potable water and the ability to construct septic fields may be a serious concern.  In other areas, fire department regulations may dictate the size and type of

facilities permitted on the site.

6.  Preliminary Investigations:

Depending on your own expertise and experience, selecting a site for consideration may only involve your seeking out a realtor with knowledge of the area you plan to develop your project in.  For many it will also involve a financial advisor, partners and your design consultant.  Once you have reached a point where you

wish to establish an option to purchase pending feasibility and engineering studies, you would be well advised to have experienced legal counsel prior to executing any options or purchases of real estate.

7.  Determining Suitability of Site:

In addition to the concerns expressed in the previous section, a site must be able to contain the proposed parking, buildings, attractions and related facilities that may be a part of the overall master plan.  An irregular site configuration may make effective use of the available space impossible.  Your design consultant can advise you of the capability of the site to accommodate your desired attractions and

associated facilities.

8.  Developing Concept Plan and Finalizing Proposed Attraction Mix:

The mix of attractions will determine the draw from the target market.  There are attractions that can draw guests from long distances, while others have a far more local draw.  Proper mixing of attractions to

include the most attractive mix for the general target market will assure the best draw.  It is important that the concept addresses the range of age groups it is intended to attract.  Remember, “the 16-year old may determine where the family group will go, but the 3-year old will determine when you leave”.  Far too

many facilities fail to provide sufficient attractions and/or amenities to keep the toddlers happy.  This can result in shorter family group stays and a resulting decrease in the per-capita spending.

The design of each specific attraction is very important.  Not all designs are equal.  Many go-kart tracks, miniature golf courses and other attractions are still being constructed using outdated designs, yesterday’s construction methods, boring experiences and related concepts and therefore failing to meet their potential.

Be certain your design consultant is aware of the most recent construction methods and products currently available and has a demonstrated ability to create new and challenging designs.

9.  Quantifying project space requirements and costs:

In the initial phases of the project it is important to have developed enough of a project concept to be able to define site needs in terms of interior floor space, exterior space, initial attraction requirements and

related information in order to determine early on whether or not the facility you have in mind will be large enough.  At the same time it is very important that you have some concept as to how you will be able to finance the project.  This will include knowing what the project will cost at least in general terms and a

realistic concept as to how you will finance it.

10.  Establishing Feasibility:

Unless you have a location that has a million people living within 10 to 15 miles of your site, you will in most likelihood require a feasibility study to present to the bank or potential investors.  They will not want to make a commitment based on your dreams and concepts without some assurance that there is a strong

potential that the project will be very successful.  You should want the same reassurances if the investment capital is all yours. 

Don’t rely on local demographics developed by chambers of commerce, etc.  The distribution is usually too general to apply to a specific site.  A firm specializing in the development of feasibility studies for the

family entertainment center industry should be used in order to establish creditable attendance and revenue projections.

11.  Developing Business Plan:

A well thought out business plan is an absolute necessity if you are to be successful, not only in properly planning out your project, but in the process of obtaining funding to construct your project.  Many people

develop their own business plans.  Some are very well done and meet with the approvals of banks and other potential investors.  Unfortunately many are not well prepared and do not contain valid information,

realistic projections or enough total package information for bankers to make realistic evaluations.  The local Small Business Administration may be able to provide valuable guidance in the process.  There are

software packages that establish business plan outlines for people to follow.  Experienced feasibility consultants can provide plan preparation services or assistance as well.  This becomes more important as

the magnitude of a project increases.

12.  Determining Financial Capability:

As you develop your project concepts, determine the potential feasibility and begin your business plan, you must have a moment of truth with yourself, where you get serious in terms of how well you can address the financial needs of the project.  This will help you identify the amount of funding you will be seeking from

banks or private investors.  You will need to know this as part of the financial support you will seek.

13. Verifying Local Codes and Ordinance Compatibility:

Each community has its own set of zoning ordinances that set out what can be constructed in each zoning district.  The ordinances also regulate front, side and rear yard setbacks that can restrict the available space for development.  There are also rules regulating noise, hours of operation and lighting.  Make certain you

have checked out the regulations that govern your site before you finalize any master plans, site engineering or other work that may be affected by these rules.  There are also other local or state

regulations that may impact on drainage sanitary sewers, water   mains and related issues. Highway departments often have specific restrictions on driveways, left turns and related issue.  Don’t forget to

check them out carefully.

14.  Developing Community Support:

Prior to submitting plans for approval by planning and zoning boards, it would be very wise to “meet the neighbors” and to cultivate business and political leaders to better understand what you are and what you are not.  Once people receive notices that there is a new project proposed in the neighborhood, the rumor

mills start grinding.  It is far better to have laid your cards out on the table, so to speak, with the people that can either hurt you or help you; than it is to have people coming to the meeting already seething, because they were not aware of the idea ahead of time.  Many people don’t know how to reverse themselves once

they’ve taken a position.  This is especially true of community leaders, commission or board members and elected officials.

The more you can reinforce positive thinking up front, the better the ultimate results will be.  Don’t be afraid of arming your opposition, real opposition will be able to get all the ammunition without resorting to the facts of your plans. You don’t want to create enemies out of people who aren’t familiar with your type

of facility.

There are information packages available that can be of great value in helping people feel comfortable with your proposed facility.

15.  Commencing review and approval process:

In almost every jurisdiction, there are certain requirements that must be met prior to actually starting construction.  These include initial concept reviews with planning or zoning authorities, multiple reviewing agencies, departmental reviews within each agency, possible public hearings, development of construction plans and specifications and their agency reviews, plus final approvals.  Depending on the magnitude of the project and the complexity of the review process in the given community, projects can take anywhere from

three months to more than a year from initial submission until final approval.  This does not include the time required for your design team to prepare the concept, preliminary and final plans.

16.  Final Design:

It is important that the consultants you select to prepare your final plans and specifications (presumably the ones that developed your master plan) are fully qualified, have a track record of designing modern,

entertaining and exciting attractions and understand the construction industry.  We strongly advise against the use of go-kart track plans prepared by go-kart manufacturers, as they do not have the broad experience in modern concrete design, site drainage, lighting and complete FEC design, which should all be part of a

coordinated facility design.

Final design plans and specifications should be extensive enough to insure that all elements of the design are presented clearly, with construction details that clearly illustrate the assembly of unique safety

elements, barrier systems, curb and curb and gutter details and related elements. 

 17. Selection of Equipment:

Once the attractions have been determined, it is important to select the proper equipment for the attractions.  This includes the specific go-karts, bumper boats, bumper cars, mini-lane bowling lanes,

arcade games, inflatables, soft play, laser tag and related elements.

Not all products are equal in quality, suitability, safety and entertainment value.  Make careful selections, as they will determine the success or failure of your endeavors.  Your design consultant should be able to

provide guidance in terms of the specific equipment selected.

18. Hiring and Training Staff:

You never get a second chance to make a first impression.  The staff you select to serve your guests and to operate the attractions represents the image of your facility that is seen by your guests.  Select the wrong ones and you may lose your repeat market, which is vital to your ultimate success.  The people you employ

must genuinely like working with people, have a positive approach to each day, are honest, trustworthy team players and willing to take whatever assignment you may give them. 

Each employee must be given an employee’s manual that presents the organizations mission, specific goals and its expectations of each employee’s performance and appearance.  It must emphasize the importance of each employee having a positive attitude at all times.  The employee must be told that he is a key member

of the facility team and that he represents the organization each time he/she interacts with any guests or other parties having business with the site.

The manual must stress the importance of each employee being aware of all safety regulations, the location of emergency kits (first aid and accident reporting), fire extinguishers, emergency lighting and exit routes for exiting the attractions and buildings in the event of fire or weather emergencies and related issues.  All

employees should be aware of the proper method of using fire extinguishers and other emergency equipment.  Specific job descriptions should also be included.

The nature of the industry causes wide fluctuations in attraction usage.  This can easily require that employees be trained to multi-task during slow times or when other employees may not show up for work. 

A wise operator will train as many of his staff to multi-task as possible.

People tend to get complacent, resulting in a need for management to reinforce initial employee training with periodic supplemental training to assure their best possible performance. 

19.  Establishing Security Program:

You must plan your safety program before your facility is completed and open for business.  This can be a combination of your own concepts, your design consultant’s and your insurance carrier’s.  Additional

suggestions may be available in the various industry publications. 

Responsibility for your guests’ safety and well-being begins when they pull off the road and onto your driveway and remains your responsibility until they leave your premises.  We champion a facility having a single entrance, which is also the single exit for the facility (exclusive of fire exits and locked gates.  We

also recommend that the entire site be fenced with a security fence to prevent unwanted people from entering and/or leaving the facility indiscriminately.  It is advisable to utilize security cameras at critical

locations throughout your facility, including outdoor attractions.

Security includes adequately lighting the entire facility, including the parking lot, avoiding creation of any secluded areas anywhere on the site, installing safety fences where required, providing safe, well

maintained equipment and training your staff to be security conscious at all times

Safety also means having procedures in place for minor accidents, fires, weather related issues and social unrest.  This includes being prepared in the event of a serious weather incident, staff or guest injury, fights, theft or other incidents? Employees must receive on-going instruction in how to deal with many different situations.  This includes 911 calls, first aid, accident recording, dealing with the media, personal injury

attorneys, belligerent guests, competitors and related situations.

21. Selection of Contractors:

Just as in any venture, the proper selection of contractors is very important.  The selection must include the ability to construct your project within a reasonable time schedule, demonstrated ability to deliver a quality

product and a commitment to constructing the project in accordance with the design plans and specifications.

The Contractor (s) you select must be properly licensed to perform the work, must have the required permits and must have all required insurance and performance bond as established by your community and

as set forth in your “Agreement”.  Never work with an unlicensed or uninsured Contractor.

If you have had your plans developed by an experienced design consultant, the plans and specifications will incorporate proven design elements and construction requirements that will result in a project that meets the

specific requirements of the attraction.  Twenty years of a firm performing construction work within a

given industry may well demonstrate proven expertise in general, but the firm may not have established the specific expertise and techniques required for the attraction being developed, to reach its desired potential.

The low bid proposal may well be the best, given the circumstances of a specific project.  This, however, is often not the case, especially when a number of trades are involved.  Where a specific element, such as

miniature golf is involved, a number of specialty contractors have excellent performance records.  This has often not been the case for go-kart track builders.  Many choose to build the tracks the way they have for

the past twenty years, which is far from what can be achieved today. This writer prefers that tracks designed by our firm be constructed by reputable local contractors that commit to following our specific

plans and specifications (our firm has informed clients that we would not provide track plans and specifications for a given project if the client chose to use traveling construction crews).  Our reputation is damaged whenever poor construction methods and failure to adequately follow plans and specifications occur, even when the unsatisfactory construction was not our fault.  Our client and his guests are also

subject to the impact of such unsatisfactory work.                       

22. Controlling Construction:

Assuming you have employed a general contractor to construct the facility, you will have selected one party to control the work on your site.  It is important that you establish a review process with him in order to clearly understand the progress on the work.   If your agreement has a time schedule, make certain he is

meeting the schedule.

Do not allow the contractor to make materiel substitutions without a sound reason for it. Many changes Contractors seek; revolve around the cost savings they are seeking to realize.  If he saves money, so should you.  Only accept changes that do not result in lessening the quality of the work or decreasing the safety of

the finished product.  Double-check any proposed changes with your design consultant. If you approve changes and any liability issues occur later, you will have assumed the responsibility and resulting

liability. 

23. Preparing for Opening Day:

There are many additional steps that must still be taken to assure that you are ready to open.  This includes establishing banking relationships, established contact with paramedic, fire fighting and police agencies that serve your site, public relations contacts, obtaining all the required insurance coverage, establishing

utility agreements, fuel delivery and storage, food services and related work.

Prior to opening your facility to the general public, it is advisable to first have a “soft” pre-opening where your employees and their families run through the operation to help discover possible glitches in your

operation, areas where staff may need more training or operating procedures may need fine tuning.

Once the soft pre-opening has been held, have a public agency day where you invite all the community public safety and public works personnel to a special agency day.  This will help establish a closer link with

agencies that may have to provide services to the facility at some time in the future.  It also makes the various agency personnel more aware of your layout in the event they have to make an emergency call.

Now you should be ready for the general public.  Good luck and continued success.

Additional Steps That May Also Occur at Any Point in the Process:

No project can be assumed to flow perfectly.  It is important to be prepared for bumps in the road, which can occur at any point in the process.  The following are situations that may occur on any project.

Revising Original Concept :

Almost every project goes through a “massaging” process where individual elements may be added, deleted or modified.  This is a normal progression from concept to reality.

What some projects undergo, however, is a complete change in the overall concept.  Some examples are changing from an all-indoor operation to a combined indoor-outdoor operation, going from a seasonal

outdoor operation to a year around operation and a significant change in the site size and/or configuration. Others could be an unanticipated resistance by the approving agencies to a particular

attraction, site plan or interpretation of zoning ordinances.

Seeking a Second Location:

We have seen situations where a project was moving smoothly toward final design, when the property owner reneged on contractual commitments; a change in concept or other issues resulted in the need to seek

an alternate site, financial realities dictated a reduced concept or in some situations unexpected neighborhood resistance resulted in a serious need to seek a second site.

Overcoming Agency or Community Objections:

When the initial or secondary introduction of the project master plan to the agencies having review and approval authority or even the community at large meet with objections.  There is a serious need to make

proper responses in order to overcome objections and changing objectors into supporters.  When the original presentations and up front introduction of the project are not open and clearly presented, serious

damage control efforts may well be needed.  

To avoid serious problems later in the course of your project, it is very important to establish a sound initial presentation to the community that can build positive support based on knowledge. Failing to do so invites suspicion and mistrust that can occur if the project is kept secret until a proverbial “hitting the community over the head” with a full blown project is announced just prior to seeking planning and zoning approval.

While the fast track approach may work, it can also result in serious delays and the imposition of restrictions that could have been avoided.

Finding Alternate Financial Support:

Private investors, banks and venture capitalists have been known to back out of projects.  Make certain the party that develops your financial arrangements is experienced in developing solid commitments, while still

having a fall back plan in the event the original financial backing disappears.  We have seen extremely positive projects fall by the wayside because the project finances were based on loose commitments or even fraudulent commitments.  Most of these events would not have occurred had the project team included an

experienced financial representative.

It would wise to have a fall back position that could result in alternate financing, rather than having the project fail for lack of funding.

Rebuilding or Revising Project Team:

This situation could occur when a given member of the project team obviously isn’t performing in accordance with the needs of the project.  It could involve any member of the team.  Typical problems could include failure to be responsive or communicate, indication of lack of required expertise for the

specific project, inability to meet specific responsibilities; unwillingness to work with other team members and similar situations.

Failing to Plan is Planning to Fail:

This statement is critical.  If you fail to plan out your project in the beginning, you are almost certainly planning to fail.  It is imperative that you undertake your project in a realistic and positive manner.  Most projects that have not been thoroughly planned out in advance are doomed to failure or at least to suffer

many delays along the path toward opening a facility and ultimately reaching profitability.

Saving money by not building a sound team early in the process is one of the most serious mistakes that the average developer of family entertainment facilities can make.  You need unbiased and experienced

advisors to allow you to take the proper steps toward success.

Peter F. Olesen, P.E. is president of Entertainment Concepts, Inc (formerly Peter F. Olesen and Associates, Inc.), a firm with more than 28 years of experience in the design of family entertainment

facilities, including more than 420 projects spanning 41states, Angola, Brunei, Canada(Alberta, British Columbia, Ontario and Quebec), Cuba (Guantanamo Bay), Kazakhstan, Mexico, Puerto Rico and Saudi

Arabia.  These services have included site selection, concept development, feasibility studies, master plans, final design, construction engineering and the renovation and upgrading of existing facilities for family entertainment centers, outdoor and indoor go-kart tracks, miniature golf courses, theme parks and other

entertainment industry projects.  You can get more information at www.fec-design.com, [email protected] or 847-561-7013.

Copyright Entertainment Concepts, Inc. 2012