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INDOOR KART RACING
A Report From Europe
By Bob Cycon

The United States is ripe for an explosion of Indoor Kart Racing (IKR) facilities and here are the key reasons why:
A. The rapidly growing popularity of motorsports, fueled largely by the marketing success of NASCAR.
B. A desire by consumers to cost-effectively experience the thrills of motor racing in a safe, controlled environment.
C. Families seek alternative forms of entertainment in which all mature members of the family can participate.
D. Corporations seek group activities in which employees at all skill levels can participate
E. Not-for-profit groups, charities, schools, etc. seek an attractive fund-raising alternative to stale traditional activities
F. A need for motorsports “learning centers” where young children can start driving at an early age under strict supervision.
G. A trend towards “complete” entertainment centers that can provide a full day of activities including meals.
H. A desire to make go kart racing a year round sport.
I. Entrepreneurs seeking new niche markets in which to invest.

For the past ten years, IKR facilities have been springing up throughout Europe with great success. At this point in time, the Europeans are the undisputed leaders in IKR. They have perfected the science… the business of IKR.

In America, there has been a huge need for information concerning the reasons why European centers have been so successful. To help fill this void, I accepted an invitation from two European indoor kart racing suppliers, FKP (Fun Kart Products) and ETC (Euro Tap Control) to visit Europe and tour some of the major IKR facilities in four countries – The Netherlands, Belgium, Germany and France.

Before delving into my report, it is important to define IKR and correct some of the misconceptions held by some of those involved in karting.

INDOOR KART RACING IS NOT CONCESSION KARTING BROUGHT INDOORS
IKR is completely different from traditional concession karting. Let’s define the two.

CONCESSION KARTING is a recreational activity with easy-to-handle karts for inexperienced drivers to enjoy at low speeds (22-28 MPH). The karts are built for maximum consumer safety, ease of maintenance and longevity required by constant use. People can “show up and ride” a concession kart and it is an activity that can be safely enjoyed by young people.

INDOOR KART RACING is a competitive activity that utilizes strengthened versions of actual racing chassis. Though speeds are restricted, they are variable (average is in the 35-45 MPH range). Participants must be educated in kart operation, track conduct and safety aspect of motorsports. It is an activity for mature drivers.

OFF TO EUROPE

I departed Chicago late afternoon on Thursday and arrived in Amsterdam at 8:30 AM on Friday. I just could not sleep on the plane so my game plan was to rely on adrenaline and coffee to get through the day. I was met at the airport by my host and guide for the trip, Philippe Van Elst, sales manager for ETC, a manufacturer of software and timing systems for indoor centers. We wasted no time heading for our first track visit. Our first stop was Coronel Kartracing in Havenstraat, The Netherlands. What an awesome beginning to the tour.

Coronel showcases two indoor race tracks, covering two levels and 70,000 square feet. The tracks featured an elaborate barrier system, racing chex along the perimeter, plenty of colorful sponsor signage and electronic timing and scoring systems. Like most European facilities, Coronel is a complete entertainment center.

Here are some of the key characteristics of the facility:
A) Richly appointed lounge and full-service restaurant overlooking the race tracks.
B) Reasonably-priced snack bar
C) Numerous private corporate meeting rooms
D) Numerous private entertainment and banquet rooms
E) A variety of coin-operated video games
F) A dazzling virtual reality ride (separate admission fee)
G) An accommodating staff of 80 people, anxious to serve guests.

Owner Ray Coronel estimates that approximately 80% of his karting business comes from corporate outings. “We’re popular with companies because we stress safety and high level treatment of our guests,” Coronel said. “We thoroughly train all of our competitors before they go out on the track and a personal guide is assigned to each group.”

Coronel Kartracing is well-equipped to handle a full day of corporate activities. It is typical for a company to hold a private meeting from 10 AM to Noon, break for lunch, meet from 1 PM to 3 PM, then hit the track for 2-3 hours of racing and friendly competition. The day ends with a cocktail hour, bench racing and a full dinner in a private room.

Weekends are reserved for consumers and public outings, and they experience the same high standards and services accorded to corporate functions. Coronel estimates that about 30% of his guests are female and the number is growing.

I asked Coronel about a subject that is somewhat touchy in the United States, the serving of alcohol at IKR facilities. Has it caused problems for him? “None whatsoever”, he emphasized. “In fact, we sell more soft drinks than beer.” He said that the serving of liquor is necessary for hosting end-of-the-day corporate functions, and the bar is a revenue producer from non-racers who visit the track for social reasons. His staff will not allow anyone on the track who has been observed consuming liquor.

My visit to Coronel clearly highlighted the core reason why European IKR centers are successful. They present a complete entertainment package, not just kart racing. They offer a variety of activities that keeps guests at the track and keep them spending money. In fact, go-karting accounts for only about 50% of Coronel’s total revenues.

HOLLAND INDOOR KART CENTERS

The next two visits were to Holland Indoor Karting Centers, owned and managed by Fun Kart Products (FKP). FKP is also a manufacturer of indoor racing karts and indoor track systems, and is actively engaged in pursuing the U.S. market.

A distinguishing feature of both facilities was strategically placed reception areas next to the restaurant overlooking the track. This way, patrons waiting to take their turn on the track could relax in the restaurant (and spending their money), and follow race results on the huge scoreboard facing the tables.

Both centers put a focus on consumer marketing, with about a 50-50 split between public guests and corporate outings. According to the owner Leo Bekkers, promotional themes center around safety, fun, and entertainment. Radio advertising has provided the greatest return, with newspaper advertising and posters included in the marketing mix. Additionally, FKP produces a slick monthly magazine titled “Holland Indoor Karting News”. The publication keeps current and potential customers abreast of what’s going on at the centers, upcoming events and stories of interest. Bekkers feels this is an excellent way to keep in touch with racers.

BRING ON THE KIDS

Though drivers at IKR facilities must have driver’s licenses, there is a place for kids at many centers. The Indoor SportCentrum in Maasmechelen, Belgium has a wonderful program called Junior Karting. On Saturday mornings, karting instruction programs are held for kids beginning at age six. Each child receives personalized instruction and learns every aspect of kart operation, safety and driving techniques. Parents watch eagerly as their kids have a great time.

American IKR facilities would be well advised to implement such programs for a number of reasons:
1) Kids learn driving and karting skills at an early age.
2) If offers kids an alternative in sport on a level playing field; not every child has the talent to excel at such traditional sports as baseball, basketball, football or hockey; karting can help build self-esteem in the formative years.
3) It’s a family activity and keep kids off the streets.
4) It’s an extra source of revenue that produces future revenue producers!

Another popular feature of European IKR facilities are fully equipped playrooms for kids, with adult supervision. The play areas allow Mom and Dad to have a fun escape on the track while their young ones have a grand old time. For older kids, auto racing video games keep them happy and also keeps cash flowing into the center.

JOS VERSTAPPEN KARTCENTER

This Netherlands-based center was my favorite. New, clean, modern, it featured all of the usual European characteristics: huge and challenging track, full-service lounge and restaurant overlooking the track, corporate meeting rooms, electronic scoring and timing system, video games, etc. But there were additional features that set this facility apart from others.

A founder and partner in the facility is Jos Verstrappen, a Formula One driver who is a national hero in Holland. Not only does his name attract visitors, but the facility has done an outstanding job of merchandising his image. One of the banquet rooms is a Verstappen Hall of Fame, featuring his driving suits, news clipping, trophies, and memorabilia from his racing career. There’s also a Verstappen Gift Shop, offering a wide variety of licensed apparel, novelty items and souvenirs… a great add-on revenue producer.

On weekends, the lounge features a band and live entertainment. According to manager Peter van den Hevval, the lounge is a weekend revenue center that is unrelated to participation in go-kart racing. In effect, it is a stand-alone night club.

Finally, attached to the Kartcenter is a state-of-the-art fitness and training center. Again, another revenue producer unrelated to, but under the umbrella of, the kart racing track.

FINAL OBSERVATIONS

A common characteristic of European IKR tracks is that they are dimly lit. I questioned four operators on why and each replied the same: it adds to the atmosphere and ambiance. I question if this technique will fly in America… we like everything bright and shiny!

In my view, the success of European IKR Centers boils down to this: Create multiple activities and sources of revenue within an IKR facility to keep patrons entertained and keep them spending money!

Case in point: At mid-afternoon on Sunday during my visit to Joost Boxoen’s Kart Center in Belgium, there was a five hour wait for guests to take their turn on the track. Imagine… a five-hour wait to race for 10 minutes! But I looked around and the restaurant was jammed, there were long lines playing video games, the spectator stands were packed with guests chugging sodas, wolfing down food and watching the racing action.

I believe it is essential for any current or potential American IKR operator to visit Europe and learn the techniques that have made the Europeans successful. They have been through the trials and error of operating facilities, and have perfected the science and business of IKR. An American operator can get from Point A to Point B much quicker by tapping into European experience. These days, it really doesn’t cost that much to fly to Europe. My round trip airfare from Chicago to Amsterdam was just over $400.

If a trip to Europe isn’t possible, I would suggest hiring an IKR manager with European experience as a paid consultant. Some of the operators I met indicated they are available to come to the U.S. to work on projects.

What a trip it was! Arrive in Amsterdam Friday morning, back in Chicago late Monday afternoon. In between 10 track visits and three factory tours in four different countries. I wish to thank Philippe Van Elst and Peter Bekkers for making the European visit possible.

About the author: Bob Cycon was the editor and CO-publisher of KMI from 1993-1999.

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