PlaySmart playgrounds deliver
big value to small markets
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Families
seek the same kinds of entertainment
whether they live in a big metropolitan area or small town America. PlaySmart
Inc. of Sedalia, Mo., recognizes that fact and has developed a business model
particularly suited to smaller FECs.
The
beauty of the model is that it includes all the desired elements, from food to
games, and neatly fits into small fun centers from 6,000 square feet up to
12,000 square feet. The highlight of the model is the PlaySmart playground that
is expandable and can grow along with the facility by the simple addition of new
elements, or "events."
Those
events are activities, such as trolley rides, that set the playground apart from
a traditional tube arrangement play area. PlaySmart events are made of web
strapping for a soft, impact-absorbing surface easy on little feet or bigger
feet (as in adults, who are encouraged to participate with their kids).
Darrell
Weaver, president of PlaySmart, explained the evolution of this model: "We
looked for historical information on what was profitable going back as far in
time as we had statistics. What we found was that games were consistent
performers, as well as food, and that birthday parties seemed to be an
up-and-coming thing that was setting a track record and doing very well."
He
continued, "To get birthday parties, you have to have something the
children really want to do. And that's where our playground comes in. We have
been in business for 10 years and have opened a variety of centers using this
model; the oldest opened four years ago."
Before
going further, we have to ask price, since million-dollar facilities spring to
mind. More is heard about mega FECs than small- to mid-size fun centers. Weaver
assures that opening a center using the PlaySmart business model can be done for
just a little over $300,000.
Weaver
credits the success of the model to PlaySmart's playground that features unique
equipment that focuses on group activities instead of a one-dimensional trail.
"It's a significantly more complex playground than others," he said.
"When you have a trail-oriented playground, after the child has explored it
several times it is the same experience. Our playground focuses on interaction
among the children so they have a different experience every time.
"One
of the primary things is we give children room to play as they normally do,
standing up. Your can easily see the children in our playground. They can play
tag, chase, or make up any number of games. There are large activity areas where
children can congregate and play together."
Weaver
challenges conventional thinking that a town of 40,000 to 70,000 citizens cannot
support a first-class FEC. Good things do come in small packages, according to
Weaver, who has installed successful soft playgrounds from 800 square feet to
1,200 square feet in this business model.
He
added, "We have been finding out for the last several years that smaller
demographic areas are just starving for this kind of entertainment. As word has
spread of the success of this model, we have been opening them at a more rapid
pace and every one is reporting above projected earnings." The proof is in
the long-term performance, which is being proven in facilities like Going
Bonkers, The Great Escape, and Leo's Place.
Going
Bonkers opened Dec. 15, 2000, in time for the Christmas vacation. Proprietor
Rich Houseweart, his wife, and another couple researched the project for about
two years. They attended trade shows and small business courses. The Housewearts
own other small businesses and had a good idea of what was involved in starting
a new venture.
Interactive
events are a highlight of the playground at Going Bonkers.Houseweart said,
"We took a very good look at the demographics, income levels, and the
surrounding area to see what was available for the kids. We found a lot of
sports-related activities but not much for families to do together. That led us
to the design of the facility, which is fun for the entire family." The fun
center is fully handicap-accessible with lifts to the second floor. Wristbands
are used for security reason
The
facility encompasses 12,000 square feet indoors. There is a full-service
restaurant with homemade pizzas, an attached frozen custard shop (Kazooz's),
quiet room for parents and grandparents, extra-clean bathrooms with automatic
faucets and separate changing room for babies, video arcade with 45-50 games (70
percent redemption), and redemption counter with prizes that go from a value of
two points up to 6,000 points. Redemption prizes, which are changed weekly,
range from trinkets and candy to lava lamps and small electronics
The
main attraction is the soft playground that goes from the ground up to the
28-foot-high ceiling and runs around the perimeter of the building on two
levels. Restaurant seating is in the middle, which allows parents to watch the
kids at play. Houseweart said, "We did not want a box design for our
playground. By spreading the playground out it allows the kids to move in a
bigger area. The downside is it added to the cost of the facility."
He
continued, "We were very fortunate. The initial plan has worked better than
expected. We were above all our projections. We were obviously busier the first
three months, but we have a huge draw and are not seeing a slowdown in business,
which surprised us."
Birthday
parties are big at Going Bonkers. There are three individual rooms with
accordion doors that slide back into the wall to accommodate anywhere from 15 to
50 people. Parents can bring in a
cake or the center will get it for them from a local bakery. Something different
at Going Bonkers is the option of birthday cookies, which is less wasteful and
saves money. Party packages include the party room, tokens for the arcade, and
pizza.
What
factors contributed to the success of Going Bonkers? According to Houseweart, in
addition to the facility itself, which is well known to families with children
aged three to 14, college students have discovered the facility and are booking
it for alternative alcohol-free parties. There are three community colleges in
the area and one four-year college.
Houseweart
has just completed an expansion to the playground with an additional bridge and
alternate path. The facility has been so successful that he has been formulating
a franchise plan that he expects to launch in mid- or late summer. "We have
the building design, the model, the manpower requirements, and the computer
system worked out," he said. "We have gone through several phases and
have it well defined now. We plan to make it available in blocks to make it
flexible in size to suit a variety of markets."
How
did Houseweart and his associates pick the name Bonkers? Simple. "We have
five children between us. One day my wife said, 'The kids are driving me bonkers
today!' We took it from there."
Dewayne
Williams, who owns the 21,000-square-foot Athens Skate Center in nearby Athens,
Tenn., recognized the need for an FEC in neighboring Cleveland and opened his
6,000-square-foot fun center in time for Thanksgiving 2001. The Great Escape is
in a unique location, in the Bradley Square Mall, which Williams describes as
"a community place where everyone goes on a somewhat regular basis."
There
are additional advantages to being in a mall. As Williams explained: "We
looked at other locations. What attracted us to the mall are the convenience (no
complex directions needed), free advertising to mall traffic, the flexibility of
hours, and especially being in the nucleus of where everything is. Some people
say they want to be off the beaten path; I believe in being right in the
mix."
He
said he is asked all the time, "Don't you wish you could have a bigger
space?" "Of course, you could always use more space," he said.
"The trade-off is, we could have obtained bigger space elsewhere but we
would not have seen the traffic. "
Williams
will take the traffic anytime. Here's what keeps customers coming back: The
Great Escape 's 18-foot high by 20-foot wide PlaySmart playground,
1,000-square-foot party room (called The Party Escape), 10 redemption games, and
a food court area that features pizzas made in-house using the Pizzas of Eight
program.
Williams
said, "We chose Pizzas of Eight for our pizza vendor through research. The
flexibility of what we could do and the package put together for us was the
final selling point."
The
most popular events on the playground are the slides. Williams said, "PlaySmart
makes the best slide in the industry--very quick, with no tubes to go through.
We prefer an open-air play space where the children can be seen. Plus, the
temperature factor inside those tubes is hot and humid and you don't know what's
going on inside. Parents like it because it's soft on the knees and everything
is very play-friendly, so friendly that parents often go inside, too. Parents
can stand up straight on the second level of our playground."
Right
away Williams saw the need for more party space, which is located on the side of
the playground. Presently two parties can be hosted in an hour on a Saturday; he
would like to be able to do three or four, depending on the day of the week.
Williams
is about to get that much-needed extra space soon. The mall has noticed an
increase in its flow of traffic this past season and has given him approval to
make a renovation and add more space by building outward.
The
Great Escape offers a safe and secure play space and something extra: a
child-sitting service for children aged seven to 12. A playground monitor
watches the children while they play; tokens and a snack are part of the
service. Parents get a pager that makes them accessible anywhere in the mall.
"Parents can go shopping or have an adult dinner while we take care of the
children for a few hours," said Williams.
Williams
did extensive research while planning The Great Escape. Having been in the
roller skating business since 1982 as management, then owner, he was able to
convert his knowledge of operating that facility over to the FEC side. He had a
good working relationship with the local coin machine operator and traveled to
amusement facilities within a 200-mile radius to get a feel for what kids were
playing the most. Williams said, "We
have good games, and they all are expected to make a certain amount per week to
stay there."
The
Great Escape and the Athens Skate Center are 35 miles apart but the opportunity
to promote the two has not escaped Williams, who plans to have cups made bearing
the names of both centers. "We want to let customers know that if they like
the service at one location, they will like it at the next facility," he
said.
There
is nothing else like Leo's Place in Idaho Falls. The 12,000-square-foot indoor
fun center features a 1,400-square-foot playground that runs 16 feet high and
offers three levels of fun. In addition, 1,000 square feet of space is set aside
for games (70 percent redemption); a well-stocked redemption counter with prizes
ranging from one ticket value up to 6,000 tickets; and a restaurant that serves
pizza, salads, specialty sandwiches, and more, and provides a spot where parents
can view their children at play.
Owner
Leo O'Ryan said Leo's Place cam from "a desire to provide something for the
kids to do so the parents can relax." He accomplished that goal when he
opened Leo's Place July 10, 1999. He went heavy with redemption games because,
as he put it, "There's something about winning. With redemption, everyone
gets something."
What
make this place special? "The playground is my calling chard," said
O'Ryan. He points to its amenities: slides and crossover bridges, bungee horses,
and the knarly forest (all elastic and a hoot to play in). It's interactive and
parents can play with their children. O'Ryan said, "It's a lot of fun. I've
gone in there with my kids and played games. It's a really good
playground." There's also a bonus when parents tag along. "If you see
a parent in there you are more apt to behave," he said.
O'Ryan
liked the PlaySmart playground because it was not set up to be tubular.
"It's enclosed in a net, and it's sturdy," he said. "With tubes,
as a business owner, I would not know what kids were doing inside a tube. I like
the idea that it's open so I can control the environment. Plus, it's good for
the kids because they use their muscles; they are not just crawling on their
hands and knees."
"Seventy
percent of my customers have children and come in for the playground and to have
a little entertainment," said O'Ryan. "They want an affordable fun
experience." That also translates to the birthday parties, which include a
playland pass, 10 tokens, two slices of pizza, and soda for a bargain: $4.95 per
child. An ice cream parlor offers 50-cent sundaes.
O'Ryan
knew he would have to offer more than one attraction to keep customers happy.
"One other place had games only and did not last," he said. "Much
of the success of the business is built around the playland. If I had not gone
in with a playground, I don't think I would be as successful as I am."
That
success meant adding on to the playland area six months ago. O'Ryan is looking
into putting another Leo's Place in Pocatello, 50 miles north, with a larger
playland.
O'Ryan
summed up his philosophy: "You have to be fair to the consumer all the
time.
Families,
whether they are minimum wage or wealthy, all want their kids to have fun. It
doesn't have to cost a fortune. When the kids have fun, mom and dad are heroes
for a couple of days."
For
more information on PlaySmart playgrounds, call (800)940-7529 or (660)829-0523;
fax (660)829-0526; Web site (www.playsmart.com).