Considering an ambitious arcade location in San Francisco, would love feedback

[electramax]

Hi guys --

I posted this same topic over at CoinOpSpace.com and am seeking feedback from the CoinOp community, especially the classic arcade community.

A couple partners and I have been lamenting for some time about the lack of a true arcade destination in CA anymore. I can only think of a handful, even in larger areas like Los Angeles. Recently we have been  considering putting together a sizeable arcade in San Francisco (yes, we're aware of commercial space rates!) We are thinking about installing 50-75 machines (that includes some pinball too).

Knowing coin-op would struggle to sustain itself, we'd surely consider other aspects of the business model like some modern-game integration, table-top gaming, and probably some kind of nightlife elements.

The closest thing I can compare it to would be Ground Kontrol in Portland, who seem to do pretty well and have a number of participants in their routine tournaments etc. To give you an idea of the SCOPE of the idea, here are some ideas we're kicking around:

What we have in mind would have to be more than an arcade - it would almost have to be an 80s cultural center. We sort of envision it with two key sections: A classic arcade, with some newer games sprinkled in (for example, the Japanese dance machines are very popular even among the younger demographic and SF offers a massive Asian market.) Decore and mood would be critical -- poster-sized Atari box art posters, a large working robot (my friend in Berkeley is an incredible artist and makes them), some space for table-top RPG/Magic card playing, 2-4 PCs for online play and LAN use (gamer cafe rates), maybe a pool table and dart board etc. Lastly, we would rent out classic home systems (for in-house use), such as Atari 2600/5200/7800, Colecovision, Genesis, NES, SNES and N64. These rates would be similar to the PC rental use.

We would also serve coffee and make all the drink names relative to classic arcade terminology. Small snack bar, lounge area. A TV running Starcade episodes and other vintage 80s TV, music videos and movies. A jukebox that only plays 80s music (maybe some late 70s stuff too.) We could also do rentals for parties and special events, maybe attract some families and bring out some of the gaming community. Think of this as the G-rated part of the business.

The second section would be a bar or club. This would open in the evening sometime and depending on location, should draw the "hipster" weekend market. We would present DJs and 8-bit music artists. Sell liquor, have a couple sit down table arcade games, a dance area. Do routine theme nights (80s, new wave, post-disco, etc.) We would also reach out to the artistic community and offer contests to design our menus, or bathrooms, or rotating wall pieces, all in the spirit of the 80s or vintage gaming.

One thing we want to emphasize is competitive gaming. We would have routine tournaments of all types, feature an LED that shows the high scores on the in-house games with the players name next to it, hoping to inspire others to beat them and get their name on the board. We have strong web development backgrounds, and a web component would be critical for promotion and sustained visibility. Perhaps a web show that covers recent tournaments, as well as modern game reviews and things that are more relative to the modern gaming market.

We have good funds at our disposal, but we would likely want to reach out to the hardcore gaming people and organizations for sponsorships and cross marketing efforts.

In terms of employees, we have the ability to run the business side, the coffee side and the liquor side. We do NOT have access to a tech, which I agree, is critical. One partner and I have strong computer hardware backgrounds so we would likely buy a machine for the sole purpose of gutting it and understanding all of it. We would also have to have access to old pros and reach out to volunteers, exchanging their help with free access to our services, which extend beyond the arcade (web consulting, etc.) But I agree, this is a huge void at the moment.

We're looking at sometime next year if we can get a solid business plan in place. We are going to CA Extreme in July and hope to talk to a lot of people there, network, and get a feel for the pulse of this kind of idea.

Do you think a business like this would thrive in the bay area?

There seems to be a lot of fringe interest groups, etc. but I wonder if such a place would bring people out of the woodwork. We have a slew of ideas but again, are a bit concerned about what the true level of interest in a place like this would be.

Thanks for any and all feedback!

[U.K Jon]

I'm sure there isn't a guy here who wouldn't like to see such a venue.
It's a massive task to undertake, one that has taken the others (Funspot, Barcade, Richies etc) a long time to accomplish and sustain.
Don't get me wrong, I'm not putting a 'downer' on your idea, but with the likes of CRT gone now (just 1 example) amongst many, you'd need a vast amount of additional research and cash to pull this off.
If you do though, I'll fly from the UK to visit for sure !!

Very best of luck in the venture. 

[JustinKnucklez]

I think you can definetly make this work. Especially if your prices are fair, people are always looking for something knew and unique to do. The more entertainment you have the more you can entertain. Like U.K said if you can go through with this I will fly out to Cal to see the arcade. Good luck to you.

[SanTe]

I would think that in the Bay Area, a place that hosts California Extreme every year where scores of collectors bring hundreds of classic coin-op video games, you could pull this off as long as your rent and utilities don't eat you alive.  Does the city have an amusement device tax, and if so how much is it per device per year?  Some cities charge as little as $25, and some charge $100 or $200, effectively putting arcades out of business before they can even start.

I think the key to Barcade's and Ground Kontrol's success in their respective major urban centers was to realize that the games weren't the primary draw and cannot sustain the business by themselves.  They realized the bar was the real moneymaker, and the games are a natural part of that environment.

You have lots of great ideas that are very ambitious.  I'd say focus on the core moneymaking aspect first.  Make sure you make your rent and utilities the first month, and then the second month.  Then expand into other things as you are able.  It took Ground Kontrol (Portland, OR) about five years to become self-sustainable.  GK is an arcade with a bar.  Barcade (Brooklyn, NY) is a bar with an arcade.  I don't know about Barcade's finances but since they have a heavier bar focus and they are in a higher density, higher income area I'd suspect they started making money a lot sooner.  1984 (Springfield, MO) does alright as well and they don't even sell alcohol.  When I met two of 1984's owners in September 2008 I asked if they had trouble making rent when they started and they said, "Not at all."  They had all these anxieties that it would be a money pit for a while and they'd have trouble paying the bills, but that didn't happen.  They took in more than they spent the first month and every month since then.  Helps that they are down the street from a college.

To my knowledge we don't have any active members here who live in the Bay Area except maybe Jonathan Koolpe, who is one of the Cal Extreme organizers.  Definitely network with those guys if you need tech help.  If nothing else it'll help get the word out that you're starting something up.

[electramax]

Rock on, thanks for all the feedback and support guys. Well I am 100% into this idea but I imagine it will take months to do the necessary research, find a location and possibly secure funding (or at least some if it).

My friend and I are flying to LA tomorrow to case some joints and maybe run over to this place:

http://www.vintagearcade.net/

We would probably be looking online at eBay or the like to get some of the machines (much cheaper than retail), but I'd like to see what this guy has to offer and see what we can learn.

Anymore feedback is greatly appreciated and I will keep you guys posted!