August 2005-THE CONCESSION GO-KART BOOM: A PRIMER
By Steve Hix
Internationally, all cultures exhibit a competitive nature of some form. Since the dawn of the 20th Century, humankind has been fascinated with the automobile. As early as the 1920s, the rich and wealthy have been building miniature form of automobile for both amusement and utility. The excitement of motorsport racing has long held the public’s popular imagination.
In the 1950s, world-class race car engineer Art Ingels and a small group of hot rod enthusiasts and racing professionals invented the “modern go-kart” from surplus lawn mower engines and salvage metal tubing. The new invention allowed them, in an economical and entertaining way, to practice their driving skills and experience the thrill of auto racing. From this meager beginning, the sport of go-karting has grown into a huge international business serving the professional go-kart racing circuit, the consumer fun kart market, and the concession go-karting amusement industry. This article will examine some of the basic fundamentals of concession go-kart tracks as attractions in family entertainment centers (FECs).
In recent years, the growth and success of the FEC industry has attracted international attention and financial opportunity for a growing number of private investors and corporate entities. FECs usually incorporate a combination of activities like miniature golf, arcade games and concession go-karting to attract a wide range of family members, and to extend the length of stay by patrons. Today, concession go-kart track are undoubtedly one of the fastest growing and most profitable attractions in the FEC industry.
Go-karting’s popularity is fueled by the public’s need or desire to feel “the wind in their face; the smell of gasoline and oil; the sound of screaming engines; the squeal of tires; and the sensation of speed and competition”. But today, the nature of the business and products are, by necessity, far different than those of the 1960s, 1970’s or even the 1990’s. Gone ate the days of the “if we build it they will come” business philosophy in concession go-karting and the FEC industry. Today, successful businesses must spend far more time and money on research and development prior to building a concession go-kart track or FEC.
Today’s concession go-kart tracks incorporate a much higher level of safety, efficiency and professionalism. A successful track is the result of a combination of elements including, but not limited to: 1) track design, remote control and other electronic safety equipment, 2) the type of go-karts and compatibility, with both the track design and market demographics and 3) effective management and employee training for efficient operations.
The types of go-kart tracks to be considered during the development process include: a) the traditional road course track with a series of short straight-aways and winding curves, where drivers compete simultaneously or race “wheel-to-wheel”, b) slick track ovals with drivers racing “wheel-to-wheel”, or c) the Indy-style course in which drivers compete “against the clock” instead of one another. In the United States, outdoor road course concession tracks have been the most financially successful. However, recently there has been substantial growth in the number and success of slick oval NASKART or mini-outlaw sprint-style tracks and indoor go-kart tracks. Of course, the type and design of the track must be able to deliver the type of experience compatible with the demands of market demographics. A specific type of track or kart that is popular in the southern United States may not be successful or acceptable in the Midwestern US, England or France. Popularity and acceptance may also be dependent upon governmental regulations.
Today’s concession go-karts offer a higher degree of durability, aesthetic appeal and greater safety features. To be financially successful, concession go-kart operators must incorporate go-kart equipment designed to withstand continual abuse by patrons and deliver long operating hours with minimum maintenance. The range of styles of concession go-karts includes: the traditional “open frame” style; the “Indy” style bodied kart with a partially- closed drivers compartment; the “NASCAR or “racing stockcar” with a completely enclosed drivers compartment; the “mini-outlaw sprint” style; the “Formula One” style; and the relatively new “Mini-Funny Car” or “Mini-Dragster” style. In addition, many go-karts are available as: single seat karts or two-seat karts (for a driver and passenger); kiddie karts for children; family karts for all ages’ or go-karts designed specifically for licensed drivers and adults. Safety features designed into most concession go-karts today include: restraint systems such as seat belts or harnesses; rollover protection; padded steering wheels and shafts; protective covers or guards for moving or heated parts; and bumper systems.
Recently, a growing number of concession go-kart and FEC facilities have been opening throughout the world. Novices to the concession go-kart industry will frequently say ‘if you throw enough money at it, it will work. After all, you look at a go-kart track and what could be easier? All you need is a track, a ticket booth, some go-karts and a few employees.” Unfortunately, many of those looking for a fast buck find out quickly that to operate a successful concession go-kart track operation requires special attention and management skills.
In spite of the overall success of the FEC industry, there are hundreds of business people who enter the concession go-kart and FEC industry every years and do not achieve reasonable profitability. Those considering entering the business would do well to review a number of existing successful operations. There are companies like the Huish Family Fun Centers of California, who have been successfully managing concession go-kart tracks and FEC operations for almost 40 years. It may be far better if you can learn from others’ mistakes, instead of making them on your own.
There are a number of existing FEC companies that offer franchise opportunities including: Putt Putt Golf, The Huish Family Fun Centers and Mountasia Enterprises. In addition, there are a number of trade associations such as the IRGA and IAAPA who offer a wealth of research, educational materials, reference resources and management training materials for those entering the business.
The FEC and concession go-karting industry will continue to experience tremendous growth. It is the commitment to family values and professionalism which allows even small facility operators to successfully compete with the larger corporations. Those interested in entering the field of concession go-karting should be prepared to do their homework and background research. The concession go-karting business does offer tremendous financial potential, but only those who spend the time and money in research, planning and design, and maintain a commitment to family values as well as effective and efficient operations management can expect to be successful.
ABOUT THE AUTHOR: Steven W. Hix is a noted amusement industry speaker, writer and market analyst, and is the Executive Director of the IRGA.
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