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International Karting Industry Buyer's Guide |
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| CONCESSION CORNER | |||||||||||||
| THE
REAL WORLD AND FECs – FULFILLING YOUR DREAM
By Peter F. Olesen P.E. Part Two of Two DEVELOPMENT OF SOUND FEC ELEMENTS AND MORE. The development of a sound Family Entertainment Center involves many elements, not the least of which are the following: 1. Location
The items discussed in this article are important. We do not pretend to have covered every element you will ultimately deal with, but hope that we have identified the major elements you will face. Address them properly and you will be off to a good start. It is definitely true that “failing to plan is actually planning to fail”. Development of an FEC that could also include a go-kart track, miniature golf course, bumper boats, softplay, arcade or other attractions, requires the consideration of many issues that may have an impact on the ultimate success of the facility. Resolve to make your decisions
based on sound judgment, using as much specific information as possible.
Wanting to do something is not an assurance of success. In most instances,
time and money spent at the start will pay enormous dividends in terms
of increasing your personal potential for success.
KNOW YOUR MARKET
Remember that the two most important requirements for a successful operation are a good site location with easy access and sound management. A good location will aid in the generation of initial and repeat business and impulse patronage. Being visible is not enough, unless new patrons can easily locate and reach your facility, the number of potential customers drops rapidly. Sound management will assure that when the patrons reach the site, they will be well treated and will enjoy their visit. Be certain your site can accommodate those attractions you wish to incorporate. Your concept plan must consider not only the attractions you plan, but must also meet your parking needs. Storage of maintenance equipment and those units (bumper boats, go-karts, etc.) that must be stored inside overnight. Conventional zoning ordinance parking requirements were not developed to accommodate the parking you will most likely require. Determine the number of spaces that will be required to serve the number and type of attractions you plan to incorporate in your facility, including spaces required by your staff as well as your guest. In your planning, consider the potential for expansion once you have established your operation. Lack of sufficient space for expansion in the future will limit your future potential but will not prevent success at the level you can develop. Each facility requires a well-designed entrance, not only in terms of signage, but also in terms of driveway geometrics. You will also have to incorporate walkways, maintenance and office space, compliance with codes, access for servicing the individual attractions and space for expansion, if planned. Review the applicable local zoning, environmental, noise, traffic, drainage, and related agency regulations, policies, ordinances, etc. to be certain that you can develop the project under consideration. Establish whether you can obtain zoning or other variations that may be required for you to develop the property, as you desire. The above review and determination of the site suitability should be completed prior to your decision to purchase or lease a property for development. If you are not familiar with this process, consider the use of a consultant. Resolve all questions concerning underlying soils, possible environmental contamination, site drainage, wetlands, flood-plain encroachments or extensive tree cover that could influence the acceptability of the site before you commit to the purchase or development of a site. Know where you can obtain the required utilities such as water, sanitary sewers, natural gas and electricity. If they are not available, determine local requirement for water wells and septic fields or other waste systems. Also, be aware of requirement for drainage and storm detention. Study your neighbors and your neighborhood. Identify possible negative forces in the local and adjacent communities that may delay or block your project. Anticipate problems in advance and have solutions ready before confrontations occur. This is especially important prior to attending planning commission or zoning board meetings. Establish good relationships with neighbors, nearby businesses, etc. Residential neighbors will have a natural concern that any entertainment facility will draw the wrong clientele, result in heavy traffic and generated a lot of noise and light. The more information you can provide them with in early stages, the less opposition they will generate with the agency having approval control over your project. Business neighbors also have similar concerns with respect to potential clientele, traffic and related issues. Be up front. Let them know what you propose to do. You will not bring in the wrong clientele. Your facility will have a positive impact on the surrounding area. You will be bringing potential patrons for the adjacent business community at the same time that they are patronizing your facility. You, in effect, are creating a facility that will be a focal point for clean, economical family recreation and entertainment. Determine whether there are potential competitors in the area that could reduce your potential revenues. Of first concern would be the other facilities that offer similar attractions. The mere presence of competition may not be as detrimental as it may appear. This is certainly true if the competition is “behind the times” in terms of facilities, equipment, marketing and management attitudes. Study their operation carefully and learn from them. They have a following, unless their facilities are really bad or the market is not there. Having competitors within the same community can be a positive factor in your success. This will be true where the existing operation is unable to expand, has a poor location, lacks management commitment in remaining current, does not police guest created problems, fails to maintain an attractive site and lacks safe equipment, demonstrates an unwillingness to upgrade or replace mediocre facilities and does not have a sound marketing program. Identify noncompetitive recreational, entertainment facilities in the surrounding area that may be agreeable to cross-marketing, thereby increasing market penetration. This approach can be further extended to non-entertainment organizations and business firms. Recognize the possibility that some industry advisors or “experts” may be biased when advising against construction of facilities in certain locations due to existing competition. Such advice could reflect a wish to protect existing franchises developed by the party expressing the opinion. In such a situation, the opinion may be subject to discussion. Make your decision based on as much factual data as you can obtain. Resolve to be better than your competition in marketing, developing attractions, hiring of personnel, customer relations, etc. Know your competitor at all times. Respond to customer comments, suggestions and complaints. Advise your personnel to do the same. In developing your concept plans, maximize your guests’ exposure to each attraction. This is an area where the use of a consultant can be quite beneficial. The placement of attractions and the flow of pedestrian traffic on site are definitely related in the generation of impulse sales. Traffic flow adjacent to and on your site should be analyzed to determine whether modified entrance designs will be required to address the added impact of traffic. Know your constraints beforehand. Be certain that your site is designed to address guest and staff safety at all times. Discuss your concerns with your design consultants and potential insurance carriers. It is important to have your site plans and specifications prepared by competent professional engineers having knowledge and experience in the design of similar FECs. Many aspects of individual sites cannot effectively be addressed by “stock” plans. This applies to site grading, geometrics, storm water detention, drainage, material specifications, entrance design, construction 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 guests. If at all possible, visit as many operating facilities as you can. Take notes and photos of the attractions, site configurations or operating practices that you do and do not like. Talk to their patrons and take note of their opinions. It is also wise to discuss your 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 your available site configuration, capacity and financial budget. Do not skimp on your individual attractions in the initial development. It is far better to develop each attraction properly, reducing the number that can be constructed initially. People formulate their opinions based on first impressions and your market depends on repeat visits. 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 will become bored because they have been there and would rather try something new. Review you proposed attraction mix with potential insurance carriers. Consider carefully the possible impact of specific attractions on your facility. Determine the impact of specific attractions on your potential premium costs or possibly the number of carriers willing to provide coverage. Plan to purchase quality equipment from reputable manufacturers. It is important you purchase products that will last, from manufacturers that can provide support and/or parts when maintenance or repairs are needed. Be extremely cautious of construction proposals that do not define the materials to be used or how the construction work will be done. This does not apply if you are your own contractor and know what you are doing. For those readers that are not in the construction industry or related businesses, we strongly recommend that you work with a consultant experienced in preparing construction plans and specification for FECs. There are a number of organizations that can provide information pertaining to the development of FECs. These include the International Association of Amusement Parks and Attractions (IAAPA), the International Recreational Go-Kart Association (IRGA) and the International Association for the Leisure and Entertainment Industry (IALEI). Each has a slightly different approach to the manner in which they present their information to their membership. All are worthwhile to belong to if you are seeking to develop or operate an FEC. There are a number of other organizations that can provide information pertaining to specialized area of the family entertainment industry, such as the World Waterparks Association (WWA) and the Miniature Golf Association (MGAUS). Review as many trade magazines, newsletters and web sites as you can to gain as much knowledge as possible about the industry. There are many articles 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 result in vary different results. Success will only occur as the result of sound planning, commitment to excellence, awareness of the needs of guests and continued effort to improve the quality of their experience and safety. Success is not automatic. It also requires recognition that sound marketing and management procedures are absolutely necessary. Establish and enforce safety, operating and management procedures. These should be incorporated in company policies and employee handbooks. Make certain that your employees are aware of their individual responsibilities. Make certain that each employee is properly trained and understands not only what his/her job requires, but that he or she represents you in all of their actions on the job. Develop and utilize work assignments, maintenance checklists and specific instruction procedures to avoid operational problems. Establish proper emergency first aid and incident documentation procedures to help patrons and employees and to reduce the risk of possible litigation. Your insurance carrier can be of great assistance in the area. Each employee is a member of your team operation. Encourage suggestions and comments on ways to improve customer satisfaction and employee morale and performance. They have direct contact with your patrons as operators of the attractions. As a result, they may have suggestions with respect to making their work easier and improving safety or public relations. Remember, they hear many comments from your customers. Solicit response from your guests. Ask what they do and do not like about your facility. The information sought should include not only opinions of the attractions, but should also include opinions with respect to appearance and performance of your staff and the truth of your advertising. Without a positive image, the facility is on borrowed time. Starting with your planning process through the operation of your facility, give consideration to the impact of new attractions on your total mix of entertainment. Each element should be evaluated in terms of how many new visitors it will draw to the facility and how it may increase the per capita spending of the visitors you already attract. While the above referred to multiple attractions, any modifications or additions to a stand-alone attraction, such as a go-kart facility or miniature gold course can also have a positive impact. The appearance of the staff, signage, theming, equipment and facilities can all increase or destroy a business. 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 your attendance and revenue. Mother Nature and the economy are both noted for their unpredictability where the enterprising entrepreneur is concerned. The above are only a few
of the elements that can affect your 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 the commitment, understand the industry and know their
market.
About the author: Peter
F. Olesen P.E. is president of Peter F. Olesen and Associates, Inc. Consulting
Engineer. His background in the study and design of theme parks and family
entertainment centers spans more than 22 years. The firm provides a wide
range of services that include preliminary site evaluation, feasibility
studies, concept design and development of final plans and specifications
and construction methods for projects ranging from stand alone go-kart
tracks to family entertainment centers and full size theme parks.
END
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Kart Marketing Group, Inc. Post Office Box 101 Wheaton, IL 60189 USA Telephone: 630-653-7368 Fax: 630-653-2637 Email: karting@msn.com |
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