Hypothetically How Much To Start A Pinball Arcade?

[shutyertrap]

In my daily ruminations, I started thinking about what it would take to start up a pinball arcade, what you'd need to have besides pinball, and how long it'd take to before you were turning a profit. I know nothing of leasing a space, setting up a business, nothing. So who wants to play along?

First off, you'd need machines. Let's say you want to start fresh and buy brand new. Top quality condition machines, newest titles, no immediate repair costs, seems like a good place to start, no? Also, I'm gonna say those players want to be playing Premium model and not base in the case of Stern, possibly JJP too. So here's what is currently readily available since they are still being made...

STERN

Black Knight: SoR
The Munsters
Deadpool
Iron Maiden
Guardians of the Galaxy
Star Wars
Batman '66

Call it 9K a pop, and that's $56,000 right there.

Jersey Jack Pinball

Wizard of Oz
The Hobbit
Dialed In
Pirates of the Carribean
Willy Wonka

Again calling it 9K a title, $45,000

Chicago Gaming Company

Medieval Madness Remake
Monster Bash Remake
Attack From Mars Remake

List is 8K per, so $24,000

So for a 15 machine arcade, that's $125,000 just to start. So what else?

I'm guessing a coin machine or two is a must.
Maybe a vending machine for water and sodas? Another for snacks? Seems to me that stuff is easy profit, and if you want someone to spend a long time in your arcade, you're gonna have to address basic thirst and hunger.
So how much is that all going to run?

I also got to thinking about what would a modern pinball arcade need to separate itself from just a regular space while not needing a liquor license.

I'd be impressed with monitors above the backbox displaying the playfield for anyone to see.
Would a merch area for t-shirts and such be a good idea?
Some table tops and stools to sit at with free wi-fi?
Hardwood instead of concrete or carpet?
Would you want all the machines to have a headphone jack available?

I also imagine there'd need to be a backroom space to house a few machines that are in various states of maintenance. So imagine if you had 20 machines on the floor, 5 of which are older titles. All machines go through a regular maintenance routine that would have them pulled from the floor for a bit. So in addition to this closed off area, you'll also need a bevy of parts and tools at the ready, right? I've also just added the cost of 8 more machines to the mix! Or do you just buy new whatever the next Stern and JJP machines are while earning back on the one's you just purchased, and skip the older machines entirely?

In my dream world, I also imagine a space with 5 or so machines that are for sale. So someone wants to sell their machine, they drop it off at the arcade. You service it up if needed, put it on the floor, it's available for play, keep all coin drops as your commission. If it doesn't sell inside a month, you have the option of telling the seller to come and pick it up, or maybe it's earning well and not costing you space, so you keep it longer. Does that scenario have any basis in reality?

What kind of hours would a pinball arcade be expected to keep? Noon to 10? 3 to midnight? Would it make sense to only be open Wed-Sun, just to keep the employee number to a minimum?
Would you do actual coin drops, with all these new tables costing $1 a game, $2 for 3 or would you charge an entry fee and have everything on free play? What would that fee even be? I'm guessing a lot of that would also depend on location, whether you're next to a laundromat or in a strip mall with foot traffic, or are a stand-alone destination.

So many things to consider that spoil the fun of daydreaming! But I really do wonder, what would the initial startup loan need to be for facilities and equipment, what would you as an owner expect to take home in pay per month, and how long would it take to pay off that initial loan and essentially run in the black?

More to the point, is it still pointless to open an arcade in this day and age?

 

[wilbers]

You would think for it to be viable some limited repair skills would be essential, that way could have a few of the latest machines bought new, and much of the lineup reliable older machines at maybe 1/3rd price of new ones - if there are 20 machines and a couple aren't working at any one time not a big problem.

Getting the right location wouldn't be easy - out of the way enough that rent is a lot lower, but not too out of the way that its much harder to get to. Planning restrictions would play a part - small industrial estate where most business close 5-6PM and would have a problem with the noise would make opening hours something like 6-11 on whichever days it proved to be viable (Friday & Saturday are a given, but which others?).

Maybe add a multicade and pool table for those who want a change from pinball.

Anyway, on a larger scale one solution is https://www.arcadeclub.co.uk/ (most recent expansion was in 2017)

 

[Fungi]

Good gawd! I think you answered your own question. Yikes!

 

[shutyertrap]

Oh I agree, someone at the arcade would need some repair skills. Messing with my two machines, I have come to learn that I can take things apart and replace them, but am absolutely clueless when it comes to the electronics. And then you take it a step further, where you start getting into restorations, which is a whole artform in and of itself.

In my little fantasy world, I see it open 5 days a week and can essentially be run by 2 employees. One is the full time always on the floor person, the other is the tech. Wednesday and Thursday evenings would be for league play, the weekend for the crowds.

Where I live, SoCal suburbs, there is no rural area and the industrial areas seem the last place you'd want an arcade. There's plenty of small strip malls of 5 or 6 shops, most of which do close by early evening. Right by my house there's a corner strip that used to be anchored by a video store that is no longer there. Plenty of space inside, plenty of parking, on a main street, surrounded by homes and even 2 high schools, with a laundromat 2 doors down and a music store next door. There is also not a single arcade or place for pinball within 20 minutes, and the nearest true pinball arcade is a good half hour away. That's where I question the viability of this sort of business, because either it's a market that is untapped once more, or its time has passed and there's no hope to bring it back.

I hate driving to a pinball venue only to find 6 machines, 3 of which are in terrible shape and the other 3 just being okay. When I went to Portland, which has a lot of pinball, there was one location that treated it's machines amazingly, which really made me think that'd be the place I'd go all the time if I lived there. We have places dedicated to pool around me, and I've seen places with a lot of video games and few pinball, but other than the place in Banning with 500+ machines, never a place solely dedicated to pinball near me. There are a lot of pinball collectors in SoCal, just not a lot of pin on location. People drive quite a ways to visit one of 2 locations for the latest release, which is also why I think having nothing but new would be a huge plus. They all already own all the older machines!

 

[shutyertrap]

Good gawd! I think you answered your own question. Yikes!

Oh I know, right?

Here's the thing though, I was watching Ninja Warrior long before there was an American Ninja Warrior show. My wife used to joke that we needed to open a Ninja gym, as people were only building this stuff in their backyards to get any sort of practice. Around season 3 of ANW, suddenly these gyms started popping up and they are quite successful when compared to a typical martial arts studio. In other words, good idea, never jumped on it.

I'm just starting to see on Twitter certain people showing off the pinball arcades they are about to open in various parts of the country. Not barcades either, but straight up pinball only. Makes me wonder.

 

[Fungi]

Oh I know, right?

Here's the thing though, I was watching Ninja Warrior long before there was an American Ninja Warrior show. My wife used to joke that we needed to open a Ninja gym, as people were only building this stuff in their backyards to get any sort of practice. Around season 3 of ANW, suddenly these gyms started popping up and they are quite successful when compared to a typical martial arts studio. In other words, good idea, never jumped on it.

I'm just starting to see on Twitter certain people showing off the pinball arcades they are about to open in various parts of the country. Not barcades either, but straight up pinball only. Makes me wonder.

I think your theoretical pre-ANW time space for your arcade was in the 80's. When 4-bits a credit was an easy spend for customers and that was enough to cover overhead without a bar.

 

[Naildriver74]

Sounds like you need a Kickstarter

 

[wilbers]

Lots of pinball collectors in the area would open up a different much lower risk possibility. Get machines from collectors on loan and split the proceeds - third to the loaner, 35-45% on running costs/maintenance/rent, remainder (hopefully) profit.

 

[shutyertrap]

Sounds like you need a Kickstarter

Ha! I was thinking I need a GoFundMe to send me to Budapest to report on a Zen Studios visit.

 

[Blkthorne]

The closest arcade to me is in Eau Claire, WI and they have about 20-30 arcade machines and 8-10 pinball machines. Open 7 days a week, noon to 10pm weekdays and weekends til midnight I think the times are. It costs $15 for a day pass which you can leave and come back the same day if you have to go somewhere plus specials like 1/2 off certain days or special events, they actually got the pricing from the owner of the Galloping Ghost who told them what to charge. They have an upstairs area to play Magic and Pokémon etc, or DnD or board games. They have refreshment area with soda/candy/hot dogs and they have a deal with a local pizza place where you can order the pizza and have it come to the arcade. Small area to buy/sell used videogames and systems. They have birthday parties held at the arcade as well. Only negative to me is the parking is 2 hours outside the streets by the place, can park in the bank parking lot next door but has to be on weekends and after hours to do that, there is a ramp a block or two over that you can have them validate for you.

 

[Naildriver74]

Ha! I was thinking I need a GoFundMe to send me to Budapest to report on a Zen Studios visit.

I’ve got the first $100.00

 

[Fungi]

The closest arcade to me is in Eau Claire, WI and they have about 20-30 arcade machines and 8-10 pinball machines. Open 7 days a week, noon to 10pm weekdays and weekends til midnight I think the times are. It costs $15 for a day pass which you can leave and come back the same day if you have to go somewhere plus specials like 1/2 off certain days or special events, they actually got the pricing from the owner of the Galloping Ghost who told them what to charge. They have an upstairs area to play Magic and Pokémon etc, or DnD or board games. They have refreshment area with soda/candy/hot dogs and they have a deal with a local pizza place where you can order the pizza and have it come to the arcade. Small area to buy/sell used videogames and systems. They have birthday parties held at the arcade as well. Only negative to me is the parking is 2 hours outside the streets by the place, can park in the bank parking lot next door but has to be on weekends and after hours to do that, there is a ramp a block or two over that you can have them validate for you.

Damn. I need to move to WI.

 

[Citizen]

Sounds like this would easily be at least a quarter million dollar investment overall for year 1, with the cost of machines, paying the part time tech, upkeep, rent, etc. If you sold $15 day passes, that'd be about 17,000 you'd have to sell before making a profit. So about 45 people per day wanting a full day of pinball. And that's factoring in a 7 day work week.

I can see now why people pair pinball with bars. You definitely need more than just pinball fueling the initial revenue stream while you're trying to crawl out of debt. Also gives me respect for the places that have managed to open full on pinball arcades without needing to piggyback it on anything else. That's seriously an achievement.

 

[trash80]

As some other posts have mentioned, a pinball arcade without a successful anchor (cafe, coffee shop, brewpub, etc.) is never going to make any money. Also, you need to go into this realizing that the tables will be destroyed and/or need constant service to keep them at 100% operation. This is why a place that caters to (not drunk) adults is much preferred so as to lessen the wear and tear on the machines.

Once you have a location in mind, there is no reason to put more than a couple brand new Sterns in the place. Buy all of the other pins used and have a total of 10 to 15 pins with another 5 or so upright arcade games. Make sure to have drink tables located near each machine and contrary to popular belief, have the establishment well lit and fitted with generous acoustic treatment. Remember, the other part of your business is the part actually turning a profit so make sure the customers that will never pay to play a pin are always comfortable no matter how many people are playing in the arcade portion. You have a real business to run, and while the pinball is a really fun gimmick, it can also be quite annoying to patrons and employees alike.

JJP tables should only ever be considered for home use. I won't get into the specifics (think old e-machines level all-in-one computer) of the hardware, but they tend to break very quickly and I have seen some be down for ages while trying to source a no longer manufactured MSI motherboard due to the currently available models having various chipset and bios revisions causing the game to not operate properly. They are stunning games that can quite fun, but I don't see them standing up to the abuse of constant stranger plays.

Anyway... I'd suggest that you first purchase a handful of pins and find an already established location you can negotiate a placement for. After a few months, reevaluate where your heart is. Some passions and hobbies can become soul-crushing and wallet emptying businesses.

Whatever you choose to do, Good luck and extra credit.

 

[shutyertrap]

Oh this is pure pipe dream. I get on various daydream kicks and let them run their course. This one I just was having a hard time plugging in semi realistic outcomes with the wild success story I wanted. It’s like when you watch a movie and suddenly see something that completely spoils the illusion, even if it’s already fantastical.

This all started with me sitting at the intersection waiting for the light, eyeballing the former vid store that’s been empty now for over a year. I thought, “I wonder how many pinball machines could fit in there?” which is a thought I often have. And then of course it morphed into what specific machines, which in turn became how much for pristine machines. After that it made me wonder how long and what would it take to make it work. I’ll let this stuff play out right up to the point of going “I wonder if I should take this up with my wife?” and then it’ll fizzle away into the ether. Cause there’s no way in hell I’m putting my house up as collateral!

 

[Blkthorne]

Damn. I need to move to WI.

heh, more near Milwaukee and Madison(Garcade) than the other side of the state.

 

[ZREXMike2]

Yep, internet ruined the world, instead of being a communications device that brought people together, it has separated them. No need to go to an arcade (or anywhere) if you can do it or watch it online.

I remember the big arcade at the mall, gone long time ago. I wonder how a console arcade would do, with Xboxs and Playstations. Just think of the legal troubles you'd get into.

 

[Jeff Strong]

My local barcade (oh wait, can’t use that word, heh) seems to be doing pretty well, but sadly the pinball machines don’t see nearly as much play as the arcade games. Often times when my friends and I are there, we have the pins all to ourselves. So I think it’d be really hard to maintain a pinball-only establishment, especially without booze.

As a sidenote, I think they make a big mistake by charging a dollar for a game on the new pins, while the older stuff like AFM, TAF, or even GoT are only 50 cents. My friends who aren’t pinheads have commented on this saying stuff like, “why should I pay a dollar for Batman when I can just play Game of Thrones for 50 cents”. It seems they’re actually losing money on their new pins by charging more.

 

[Kolchak357]

Definitely a jukebox of some kind and a pool table or two. Maybe some digital dart boards. I also wouldn't start with all brand new high end machines. Sprinkle in some older DMD and system 11 at least. Keep the start up costs down. Classic arcade always a hit too. Ms Pac Man, Donkey Kong, Street Fighter, etc.

Fun to dream about something like this, but you'd really have to find the perfect location to get it to fly.

 

[vikingerik]

As some other posts have mentioned, a pinball arcade without a successful anchor (cafe, coffee shop, brewpub, etc.) is never going to make any money.

It's not quite impossible. Modern Pinball in NYC has none of that, nothing but pinball (just a few tiny souvenir items like t-shirts) and seems to be doing fine. Of course NYC is an outlier in terms of available audience and foot traffic.

It uses the pay-per-time model (1 hour / 3 hours / all day), which I think seems to be more successful than pay-per-game for a place with enough machines (20+). Silverball Museum in NJ is also like that, with only the games (video along with pinball, but no food service), and has been in business for quite a while.