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CONCESSION CORNER

DOING IT RIGHT THE FIRST TIME – PART II
By Peter F. Olesen, P.E.

KNOW WHAT’S AHEAD OF YOU—
Planning, constructing and operating a go-kart track, miniature golf course, family entertainment center (FEC) or similar attraction is far from a no-brainer. There may have been a time when almost anything constructed had a chance for success. But, in today’s marketplace, there are many competitors for the public’s available disposable income. Therefore, more than ever, it is important to be well informed prior to starting a project of such magnitude.

During the initial stages of developing a project, there are a number of issues that a prospective developer should consider. This is true whether the course is a stand-alone facility or part of an FEC. These issues vary in their importance in some instances because of the individual expertise of the prospective developer. We’ve written this article assuming the reader to be relatively inexperienced in this particular industry. The items that will be discussed prior to the section on determining which approach to use in the actual design and construction of a miniature golf course facility apply regardless of the ultimate decision whether to build it yourself, have a consultant design the facility and local contractors build it, or to have the facility designed and constructive by a design/build firm.

(Note: Part I can be found in Concession Corner ARCHIVES for May, 2003)

Landscaping—
Landscaping involves dealing with a number of site-specific elements. These span the impact of the local climate, growing seasons, rainfall and other weather-related issues; soil types, track design, availability of specific plants, their ability to survive with a minimum of care and other issues unique to the specific site. It is advisable to establish whether a supplemental watering system is required. Doing this before construction obviously saves costly revisions later.

Planning for the Operation of the Facility—
An important element in developing your facility is designing ease of maintenance and operation into the facility. This will be an ongoing benefit. His applies to the movement of guests from the parking lot, access to the track and other attractions, handling of merchandise and premiums, consumables and related items within your main building as well as ease of cleaning. It includes easy access for deliveries and maintenance equipment; storage of karts and equipment; and easy access to control panels for lighting and other operational items.

Project Timetable—
Often people proceed with the planning and development of a go-kart track and other associated facilities without establishing a realistic timetable for each step in the process. This has led to many disappointments, disputes and, in some cases, failed projects. Each step in the evolution from the dream to reality has a time increment. Some may occur during the same period of time, but others do not. Take time to review the various stages that your project will experience. Verify the elements that can be identified. This includes your initial planning, establishing financing, plan commission and zoning board approval procedures, regulatory agency review and approvals, negotiations with contractors, construction schedules, weather delays, staff training period and associated elements that will impact on the time it will take to get your project constructed.

Don’t assume that submissions to reviewing and approval bodies will be perfect the first time. This is far from normal in the bureaucratic maze that exists in a great majority of jurisdictions around the country. Allow for extra time, over and above what public servants estimate for approvals. It would be great if you reduce your anticipated timetable. If you don’t, however, complete your project within the timetable you have established, it could have a serious impact on your ultimate success. Being realistic is important, as it involves money, effort and commitment.

Financial Capabilities—
To be certain you are prepared to build and open your facility, it is important to be prepared for the cost of construction, start-up and operating costs for a portion of your first season. Revenues are never instantaneous. It is also prudent to anticipate reduced attendance and revenues due to conditions beyond your control. This could include economic downturns, cold or wet weather, changes in school vacation periods due to ‘weather days’ and related factors that may occur at inopportune moments. This should involve assuring yourself that you have sufficient reserves or funding sources that could enable you to survive reduced revenues in not only you initial year, but in subsequent years as well.

Selection of Consultants—
It is usually advisable to employ the services of a professional consultant familiar with the karting industry, unless the owner is an experienced general contractor or has owned and operated a similar facility. There are many reasons for suggesting that the owner/developer engage the services of a consultant. These include:

1. Magnitude of investment warrants having a professional develop the plans to avoid as many potential pitfalls as possible.

2. Having the outside set of eyes and independent viewpoints.

3. Involving someone who can be realistic and unbiased in reviewing both technical and political concerns.

4. The old adage – ‘Pay now or pay later’ – applies to almost any decision made in the development of any project. Be certain of your actions early. Saving money during the planning stage can often result in losing much more in the construction or operating phases.

Selection of Contractors—
Not only do most, if not all of the items listed above for selection of consultants, apply in the selection of contractors. Many different approaches can be taken in developing a go-kart track including the following:

1. ‘Do-it-Yourself’ from planning to construction — There are people who have taken this approach and have been quite successful. Unfortunately, that has not always been the case. For experienced contractors or others with extensive construction expertise, it may be a reasonable approach. But, for those not experienced in the industry, it could be a major disaster.

2. Select a consulting engineering firm for design and put the project out for bids by general and specialty contractors — This method assumes selecting a firm with extensive experience in the industry to develop ideas and designs that suit your needs both in concept and within financial parameters. It provides the opportunity to create an entire site concept that addresses not only design and integration of the attractions but complete site engineering concerns as well. This includes storm water management, parking, site grading, traffic engineering and related issues.

Under this concept, the owner is afforded greater latitude in making decisions about what, when and by whom the project will be constructed. It allows the use of specialty firms such as design/build firms or general construction firms to construct specific attractions designed by your consultant and local construction firms to construct the remainder of the facility (it does not prevent the use of design/build firms for specific elements of the overall facility). The flexibility under this option provides more opportunities to achieve economy in cost and timing.

3. Contract with a design-build (turn-key) firm — Under this format, the project is awarded to a firm that designs and constructs the facility, turning the facility over to the owner, ready to open for business. A number of firms in the industry work under this concept. Many do not provide complete site development, but specialize in constructions certain portions of the project, leaving lighting, landscaping and/or irrigation to be completed by local firms. Selecting a design/build firm allows an owner to rely on a single source for design and construction, including the use of the contractor’s own specific methods and materials. Should an owner choose this format, the specific elements to be constructed by the design/build firm should be identified at the start, to permit the owner to obtain other specialty firms, should such be necessary.

4. Select a local architect and engineer — Selection of a local architect and engineer to carry out the entire project is an option taken by many individuals. While often a successful option, this approach may result in unanticipated costs, problems or delays due to a lack of familiarity with the industry and the design of the course.

Selecting local firms to work within a team concept, along with an experienced consultant, is an entirely different situation and can produce outstanding results. Care should be taken to be certain that the various parties understand their individual roles and are committed to the success of the project.

Operating the Facility—
We will leave discussions on the operation of kart tracks and family entertainment centers (FECs) to those more experienced, except for the following general comments:

1. Train all staff members to recognize that the customer is a GUEST and should be treated as such. They must understand that they represent you and the facility in each instance when they interact with the guests.

2. The appearance of your facility and staff is as important in the impression given to guests, as is the quality of the attractions.

3. Allowing unruly or intoxicated guests on your facility is a sure way to drive away families. They should not be tolerated. Losing bad customers is good business.

4. The adage ‘Build it and they will come’ works in the movies, but don’t count on it if you want to be successful. Develop a sound marketing plan and stick to it. Use cross marketing and target as many different age groups as possible.

5. Listen to your ‘guests’ and employees. They can be a very valuable source of ways to improve your facility, its services and image.

Remember— sound planning, hard work, fair prices, dedication to quality and friendly service for the foundation for success. Good Luck!

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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