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CONCESSION CORNER

CONCESSION TRACK PLANNING & DESIGN – PART 2
By Peter F. Olesen

The concession go-kart industry is growing, not only in terms of stand-alone go-kart tracks, but also in terms of go-kart tracks being key components of many new outdoor family entertainment centers (FECs). The idea of riding go karts appeals to young and old alike. While not as exciting as competition karting, it is far more accessible and a lot less expensive. The casual driver can enjoy the feeling of moving around a road-type course in a low-slung, racy-looking kart. This can be accomplished without the need for the same level of expertise, commitment and investment as a competition karter. This two-part article is directed to the family-oriented go-kart track and family entertainment center facility. See Part One in Concession Corner ‘Archives’ for December 2003.

PART 2

Identify possible competition in the area that could reduce potential revenues. Of first concern would be other facilities that offer similar attractions. The presence of competition may not always be detrimental. This is certainly true if the competition is “behind the times” in terms of facilities, equipment, marketing and management attitudes. Evaluate their operations carefully and learn from them. They have a following, unless their facilities are bad or the market isn’t there.

Having competition within the same community can actually be a positive factor in success. This is especially true where the existing operation is unable to expand, has a poor location, does not police patron-generated problems, has an unattractive site or demonstrates an unwillingness to upgrade or replace mediocre equipment.

Look for non-competitive recreational and entertainment facilities in the area that may be agreeable to cross-marketing, thereby increasing market penetration.

Consider the possibility that some industry advisors or “experts” may be biased when advising against construction of facilities in certain locations due to existing competition. This could perhaps be intended to protect existing franchises developed by the party expressing the opinion. If such is the case, the opinion may be subject to discussion. Make decisions based on as much factual information that can be obtained.

Resolve to be better than the competition in marketing, attractions, personnel, customer relations, etc. Know your competitors at all times. Respond to customer comments, suggestions and complaint. Advise personnel to do the same.

Plan a facility to maximize the exposure of each attraction to the patron. The use of a consultant can be beneficial in establishing the placement of attractions and flow of pedestrian traffic on site.

Many locations will require an assessment of traffic flow and development of modified entrance designs to address the added impact of traffic. Know constraints beforehand.

Be certain that a site is designed to address customer safety at all times. Discuss concerns with design consultants and potential insurance carriers. Have site plans and specifications prepared by competent professional engineers who have knowledge and experience in the design of similar family entertainment facilities. Many aspects of individual sites cannot effectively be addressed by “stock” plans. This applies to site grading, geometrics, storm water detention, drainage, material specifications, constructions methods and related features of the overall project, as well as the arrangement of individual site elements to maximize exposure to individual attractions and to create a suitable comfort level for site patrons.

Visit as many operating facilities as possible. Take notes and photographs of the attractions, site configurations or operating practices that you like or don’t like. Talk to their patrons and take note of their opinions. It is also wise to discuss preferences with your design consultant.

Try to establish a site concept that addresses your specific market. If possible, include attractions that provide entertainment for all age groups. This must be considered in the context of an available site configuration, capacity and financial budget.

Do not skimp on individual attractions in the initial development. It is far better to develop each attraction properly, reducing the number that can be initially constructed. People form their opinions based on first impressions, and repeat visits are necessary. Initial construction of one or two attractions, properly done, can better generate repeat visits than will more attractions.

A facility that either adds or revises attractions from one season to the next generates additional interest to return to see what is new. If everything stays the same, many people become bored because they’ve been there and would rather try something new.

Discuss a planned attraction mix with possible insurance carriers. Evaluate the possible impacts of specific attractions on a facility. Determine the impact of special attractions on potential premium costs or possibly the number of carriers willing o provide coverage.

Plan to purchase quality equipment from reputable manufacturers. It is important to purchase products that will last, from manufacturers that can provide support and/or parts when maintenance or repairs are needed.

Be cautious of construction proposals that do not define the materials to be used or how the construction work will be done. It is advisable to work with a consultant experienced in preparing construction plans and specifications for family entertainment centers.

Review data presented in the various trade magazines and newsletters to gain as much knowledge as possible about the industry. There are many articles written on the various attractions that can be incorporated into good family entertainment complexes. Realize that the vast majority are written to extol the benefits of the given attraction. Recognize that different locations, market mixes and operating styles can create very different results.

Success is not automatic. It will only occur as the result of sound planning, commitment to excellence, awareness of the needs of patrons, and continued efforts to improve safety and the quality of patrons’ experiences. It also requires recognition that sound marketing and management procedures are absolutely necessary. Establish and enforce effective safety, operating and management procedures. These should be incorporated in company policy and employee handbooks. Make certain that employees are aware of their individual responsibilities. Make certain that each employee is properly trained and understands not only what the job requires, but that he or she represents you in all actions on the job.

Develop and utilize work assignments, maintenance checklists and specific instruction procedures to avoid operational problems. Establish emergency first aid and incident documentation procedures to help patrons and employees, and to reduce the risk of possible litigation. An insurance carrier can be of great assistance in this area.

Make each employee a part of the team operation. Encourage suggestions and comments on ways to improve customer satisfaction and employee morale and performance. They have direct contact with the patrons as operators of the attractions. As a result, they may have suggestions with respect to making their work easier, improving safety or improving public relations. Remember, they hear many comments from customers.

Solicit responses from patrons. Find out what they like or do not like about your facility. The information should be included not only the attractions themselves, but should also include opinions with respect to staff appearance and performance as well as truth-in-advertising. Satisfied customers are the best form of advertising. Without a positive image, a facility is on barrowed time.

From the planning process through the operation of your facility, consider the impact of new attractions on the total mix of entertainment. This applies not only to a facility that contains more than one attraction, but to a stand-alone go-kart track as well. The theme, the appearance of the staff, signage, equipment and facilities all can serve to increase business or destroy it.

Know your limits. Can you afford the initial investment, delays in construction, equipment failures, staff problems and related issues? Be prepared for circumstances beyond your control that can influence attendance and revenue. Mother Nature and the economy are both noted for their unpredictability where the enterprising entrepreneur is concerned.

In this two part series, we have addressed only a few of the many elements that can affect the potential for success. Remember, each project, owner and community is unique. Plan for both the good and bad times. This industry can be the source of much success and satisfaction for those who have commitment, understand the industry and know their market.

ABOUT THE AUTHOR: Peter Olesen is a Licensed Professional Engineer in eight states and President of Peter F. Olesen and Associates, Inc. 500 West Central Road, Suite 205, Mount Prospect, Illinois 60056 USA. The firm provides consulting services to concession go-kart and Family Entertainment Center clients. Project span 35 states, Puerto Rico, Canada, Mexico and Brunei. Services range from preliminary site evaluations, feasibility studies, concept development, master planning, design and construction engineering services for project 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, see www.olesen.com or call 847-253-1515.

END

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