If you want to start an new indoor playground，now it is an excellent chance. Open an indoor playground needs market research, site compliance,equipment purchasing and operation management. Next a guide to the process of opening an indoor playground about preparation, operation and some key points.
Preparatory work
Market research and Positioning
Research’s core is find market gap and avoid homogenization competition.
1. Customer demand analysis
The key is counting family quantity, children’s age distribution, average monthly earnings and parent-child consumption habits.
2. Comprehensive research
You can visit other amusement parks and children's area in the mall.Record some information: positioning, average customer spending, core device configuration, operating model, foot traffic patterns, service gaps.
3. core positioning
Use research result can determine amusement park style and characteristic: if leading low age children, you can focus on safe soft equipment and parent-child interaction scene; if leading older children, you can focus on trendy play sports, AR and so on. if leading high-end oriented, you can add IP theme park and local culture.
Area and compliance
Site selection and area evaluation
Site selection determines visitors flowrate and needs to balance geography location, area condition and operation cost.
1. Preferred location
Priority sequencing: big shopping centre or children's floor>big community>education institutional area. Avoid underground floors, high-rise buildings or poor transportation area.
2. Area hard Requirements
Above 200㎡ area,can enrich functional zoning, but needs enough budget and customer group scale; floor height not less than 2.8 meters; a little of column better; infrastructure needs electric power, drainage, ventilation and air conditioning and so on.
3. Contract negotiation
You need to know lease term, rent payment way. You can completed the opening preparations in the free rent period; If you enter shopping mall, you need know shopping mall firefighting requirements and property management regulations.
license and certificate handing
You should have license and certificate at all, different region have different policy.
1. Business licence
Processing department: Local Market Supervision and Administration Bureau or Administrative Service Center.
Material requested:operator ID card, proof of business premises, name pre approval notice, business description. If this project about catering services or fee party, you need add“food business”and other items，avoid operating beyond the approved business scope. Book an appointment online, improve efficiency.
2. Fire License
Processing department: fire and rescue agency or Housing and Urban-Rural Development Department.
Material requested: venue floor plan, fire fighting equipment list, Interior design document, application for fire inspection. Children's playground park should have fire extinguisher, fire hydrant, emergency lighting, evacuation sign and so on. Floor needs fireproof and anti-slip material,exit passageway unobstructed.
3. Hygiene License
Processing department: Location Health Department
Material requested: venue floor plan, Air Quality Monitoring Report, Health Management System, Health Certificate for Employees. If this project about catering services, needs processing Food Business License. Open the sanitation and disinfection regularly and keep records.
4 .Other licenses
If amusement park have game machine, claw machine. You need apply for Entertainment Business License and provide material requested.
Space design and function zoning
Design needs safety and functionality and thematic perception, based on children’s behavior and age planning the zone.
1. Equipment and Device Area
Area proportion: 40%-50%
Core configuration: slide, climbing frame, trampoline, balance beam.
Safe and Key experience points: floor needs high-density cushioned mat, build Safety
guardrail and based on children’s age zoning the zone.
2. Creative Activity Area
Area proportion: 20%-30%.
Core configuration: building blocks, sand and water play area, graffiti wall, handicraft table
Safe and Key experience points: use friendly and non-toxic materials, rounded corner treatment at all, sand and water play area make waterproof and cleaning.
3. Parent-Child Interaction Area
Area proportion: 15%-20%.
Core configuration: cosplay prop, parent-child game facilities, resting seat
Safe and Key experience points: soft floor, stay a space for parents to look children.
4. Service and rest area
Area proportion: 10%-15%.
Core configuration: Frontend table, locker, restroom, dining area.
Safe and Key experience points: near emergency exit,equipped fire-fighting equipment,keep ventilate.
Playground equipment procurement and manufacturer selection
The park has a core competitiveness which was equipment ,needs balance the safe and quality and cost performance.
1. Equipment selection core
Safety first: all equipment should comply with national relevant safety standards and certified ISO9001, CE; Comply with Environmental Protection Technical Specification for Children's Play Facilities and quality friendly.
Adaptive positioning:the equipment according to the target age group, add one-two distinctive items. Avoid homogenization with competitors; Use interesting and educational to satisfy parents and children’s demands.
Be vigilant low price trap:bad equipment repair has high cost and safe questions.
2. Manufacturer selection
According to the items size and positioning, choose manufacturer. And you should check manufacturer qualification, going the other similar projects to study equipment operational status, ask some partner’s feedback what can help avoid fraud.
Operation management
Opening and team
1. Opening preparation
Material preparation: Procurement Cash Register System, Membership Card,
Medical consumables, office supplies. Dining area needs food and utensils.
Formulate rules: make a hygiene and disinfection procedures, equipment’s daily inspection/weekly check/monthly inspection, safe plan, member management rules.
Preheating marketing: before the opening, you can release some activity information, launch pre-sale package and planning opening activity.
2. Team and training
Core position: security officer, guide, cleaner and cashier. You can choose staff who has compassion, patience and responsibility and open system training can help the team has profession ability.
Daily operation
1. Operation management
Hygiene management: put up a system of“three days cleaning, one week disinfection, one month checking”, some equipment often be touched should be two hour cleaning，keep the space not has peculiar smell、sundries and airiness.
Equipment maintenance: execute daily inspection,weekly check, monthly inspection strictly, if find some questions, you need deactivate and maintenance immediately.
Safe management: security officer should patrol in the whole process, avoid dangerous behavior, parents can know safety points to note before entering,equipped with first-aid kit and emergency exit sign.
2. Ticketing and member
Pricing strategy:according to the cost and competitor's price,make tiered fare ,like single ticket, Subsequent Card, Monthly Card、Season Pass、Annual Card and Family Two-person Ticket or Three-person ticket.
Member benefits: put up member system, provide recharge bonus amount, birthday benefits, participate in the activity first, member discount and so on, it can improve customer stickiness and repurchase rate.
How much to open an indoor playground?
Indoor playground cost has the difference depend on site, city level is significant. Following the market conditions, analysis the core cost.
Main Amusement items is foundation, simple renovation, and equipment not has power, need money about $120000-$300000.
Rent and cash pledge: approximately $30,000-$80,000; Rent cost $15-$30 per square meter and per month; Property cost $3-$8 per month and per square meter.
Decoration work: approximately $25000-$50,000; often the decoration cost $120-$180 per square meter,contain fire and slip prevention floor, wall surface decoration, airiness.
Equipment procurement: approximately $50,000-$1200,00.
Core equipment: basic naughty castle（$30000-$60,000）, soft slide combination（$10000-$20,000).
Assist equipment: locker、parents rest seats、simple Interactive Projection equipment（$10000-$40,000.
Certificates compliance: approximately $10,000-$250,00, contain business License, fire acceptance inspection, hygiene permit and so on.
Marketing and opening： approximately $50,000-$1200,00, location social media promotion and opening experience activity.
Medium park（500-800㎡）
Have diverse experience, add trampoline, AR interactive and other items, need money approximately $500000-$1000000.
Rent and cash pledge:a pproximately$150000-$300000, second-line city shopping mall children’s floor, rent is approximately $40-$80 per month and per square meter; First-tier city rent is approximately $80-$150 per month and per square meter, CAM cost approximately $8-$15 per month and per square meter，some store need pay $5000-$20000 admission fee.
Decoration work: approximately $80000-$180000,decoration $180-$280 per square meter,contain simple theme, room of mother and infant remake, supervisory control and fire system upgrade, shopping mall decoration need pay extra cost.
Equipment procurement: approximately $100000-$150000
Core equipment: theme naughty castle（$80000-$150,000）, profession trampoline area（$10000-$40,000）, AR interactive climbing wall（$10000-$40,000）.
Assist equipment: 10-15 children's video games, handicraft area props, intelligent cash register system（$40000-$90,000, equipment installation and commissioning fee.
Certificates compliance: approximately $30000-$60000, contain license for entertainment business, special equipment inspection, air quality, fire safety inspection and advice fee for compliance.
Marketing and opening: approximately $30000-$80000,location life media promotion, opening showtime activity and open to booking set meal design.
Large-scale theme park（more than 1000㎡）
Main IP custom made and immersion experience, most high income family, need money approximately $2000000.
Rent and cash pledge: approximately$600000-$1200000, core high-end shopping mall, rent approximately$120-$200 per month and per square meter, need pay $50000-$200000 admission fee.
Decoration work: approximately$400000-$800000,decoration $400-$600 per square meter,contain IP custom made, high-end room of mother and infant, Light dining area decoration, intelligent ventilation and temperature control system, have LEED environmental standards.
Equipment procurement: approximately$800000-$1500000,
Core equipment: IP custom naughty castle（$200000-$400,000, Large-scale interaction amusement system（$150000-$300,000）, VR parent-child equipment（$100000-$200,000.
Assist equipment: high-end video game area, early education equipment, intelligent management system（$250000-$500,000.
Certificates compliance: approximately$100000-$200000,contain IP licensing fee（$50000-$100,000, food business license, multiple special equipment inspections.
Marketing and opening: approximately$200000-$400000, media disseminate, high-end opening party and build brand awareness.
Profit Analysis of Indoor Playground
According to the scale measurement operation stable period（suppose opening after six months ）profit situation.
Small park（200-300㎡）
Average per month income: approximately$18000-$350000
Entrance ticket income:single ticket $15-$25 one people，average daily passenger flow 40-80 people.
Member fee:one month card $80-$120, one annual card $350-$500.
Value added service: snacks sell、simple handwork.
Monthly operating cost: $8000-$15000,contain rent and property management fee（40%-50%）、human cost（30%-40%）、maintenance of equipment（10%-15%）、insurance and water and electricity（5%-10%）.
Monthly net profit: $10000-$25000，net profit rate 28%-45%，prime（first 3 months）passenger flow not enough, net profit maybe down 30%-50%.
Repayment period: 6-30 months,second-line city repayment period 12-18 months,best city repayment period 18-24 months.
Medium park（500-800㎡）
Average per month income: approximately$60000-$120000
Entrance ticket income: single ticket $25-$40 one people, average daily passenger flow 100-180people.
Member fee:one month card $150-$220,one annual card $600-$850.
Value added service:birthday party ($300-$800), video game income, parent-child course income.
Monthly operating cost: $40000-$80000,contain rent and property management fee (35%-45%), human cost (30%-35%), maintenance of equipment (10%-15%), marketing promotion(5%-8%), insurance and water and electricity and expense of taxation (5%-7%).
Monthly net profit: $20000-$40000, net profit rate 30%-42%, trampoline area and AR interactive area has high loss, net profit maybe down 5%-10%.
Repayment period: 15-36 months,second-line city core shopping mall repayment period 18-24 months,best city core area repayment period 24-36 months.
Large-scale theme park（more than1000㎡）
Average per month income:approximately$200000-$400000
Entrance ticket income: single ticket $40-$60 one people, average daily passenger flow 200-350people.
Member fee: one annual card $1200-$2000,personal custom member 5%-8%.
Value added service:high-end birthday party, IP surrounding sales, early education course, Light meals income ($15-$30) .
Monthly operating cost: $120000-$250000,contain rent and property management fee（30%-40%, human cost（25%-30%, maintenance of equipment and IP licensing fee (15%-20%), marketing promotion (8%-12%), insurance and water and electricity and expense of taxation (5%-8%).
Monthly net profit：$80000-$150000, net profit rate 32%-45%, high-end service significant premium, but IP licensing fee maybe affect profit stability.
Repayment period: 24-48 months,early stage cost high, high operating costs, many items 2.5-3 year recover capital.
Influencing profit factors
Passenger flow stability, shopping mall depend on weekend and public holidays passenger flow, community store need member activity to improve store visit rate in the workday.
Value-added services proportion, value-added services revenue proportion per improve 5%, net profit margin can improve 3%-5%.
Cost control, human resources and rent is the maximum expenditure, can use intelligent management system optimizes scheduling, negotiation rent escalation to reduce cost.
Open indoor playground is a complex and system engineering, so this guide according to my many year experience, make a summary. Hope it can help.
