How to Pick an Arcade Location

Arcades are specialized businesses that require good foot traffic, tolerant neighbors and certain building features. Here's how to pick a good commercial location for an arcade.

1) Consider your clientele for foot traffic

While there are exceptions, most successful arcades are in areas of town where there is plenty of foot traffic. As most of your customers are going to be teens or young adults (unless you are setting up a classic pin ball arcade, or you want more of a family entertainment center), that usually means you'll want to be within a short drive of a school or a large housing development or a suburban area. Being close to a laundrymat or a shopping center is also a good idea. Even a grocery store is enough of a traffic draw. Of course, gyms and sports centers are natural good neighbors.

2) Access is critical

Your location should be easy to get to and be secure (ie, it has good lighting in the parking lot and the occassional visit from a police officer). It must have ample parking.

Another critical factor for access for arcades is door size. While most games will fit through standard doors, some of the larger and more elaborate games will need an extra foot of width beyond the standard door. Make sure your new space can handle this.

3) Zoning is the law

Before you get too enamored of even the most perfect spot, be 100% sure (and get it in writing) that it is zoned for an arcade. Some townships will frown on your business model and be concerned that you could be attracting wayward youths who might wander off to cause trouble nearby. Some of your neighboring businesses might put up a stink with the zoning board, too. Proceed with caution and patience, and get your zoning approval in writing before you buy your machines.

4) Size matters, but small is workable

Arcades can work in anything from 1,000 to 10,000 or more square feet. Many of the huge fanily entertainment centers are 10,000 or more -- they're almost indoor carnivals, complete with simple rides.

But you're probably thinking more of a local arcade, and those do not need a few football fields of space. Anything under 2,500 feet is considered a small arcade, and one of the key benefits to them is that they can be planned and set up in less than 2 months. However, even if your location is barely 500 square feet, you can definitely launch small and then more to a larger location later if your area proves to have a demand for an arcade.

5) Consider ceiling height

The average pin ball machine is nearly seven feet high and weighs about 300 pounds. Some of the larger, more elaborate games (read "fun") are higher. A standard eight or nine foot ceiling is not a deal-killer, but it may restrict your options a bit.

You should also be aware that direct sunlight is extremely bad for games -- the sun will fade the machine colors fast, and it also makes it hard to play the game with sun glare. So if your location has a huge front window that streams bright light in all afternoon, you may have to re-design the floor plan to keep your expensive new machines out of the glare.

6) Consider electrical loads

Most pinball machines use between 2 to 10 amps and 300 to 1000 watts. In non-techie speak that means that you'll probably have to upgrade one or more circuit breakers to accomodate the power needs. Make sure your building's electrical system can handle this. In fact, it is always a fine idea to ask for a building inspection before you sign any commercial lease.

7) Serving food and drink

Selling munchies and soda will certainly increase sales, but it will also give you something else to manage. You'll also have to keep the soda and snacks and whatever else you sell away from your machines. One strategically spilled soda can wreck a $1,000 video game.

Selling food usually means you'll have to hire someone to do it. It also means you'll have to have a food preparation area, and that means you make have to pass a kitchen inspection and get all the relevant certificates and licenses to serve food in your area. Maybe its worth it; maybe its not.

Of course, if you want to keep things simple, you could just put in a few vending machines.