Top 10 core key factors for selecting a location for opening a video game arcade store, choosing the right location can guarantee a steady profit

Those who have opened video game arcades and are deeply involved in the amusement industry know that site selection is the core first step in the success of opening a video game arcade. Well selected location, with built-in traffic and easy operation; Choosing the wrong location, even with professional operation and good equipment in the later stage, it is difficult to access the valve store.
Based on years of practical experience in the implementation and overall planning and operation of offline video game arcades, we have summarized the top ten core key points for selecting the location of video game arcades, comprehensively screening high-quality store locations, helping everyone avoid location pitfalls, and locking in the optimal store location.
1、 Core pedestrian flow: Five kilometer radiation population base
The foot traffic is the foundation of the profitability of the video game city, and the selection of the location primarily considers the number of permanent residents and floating population within the five kilometer radius of the store. Priority should be given to areas with dense residential areas, concentrated office buildings, and a majority of young people. At the same time, natural and ineffective pedestrian flows should be distinguished, with a focus on the proportion of core consumer groups aged 18-45. The population base determines the basic customer flow and revenue ceiling of the store.
2、 Parking facilities: Convenient transportation determines customer retention
Most video game arcades are dominated by family customers and young companions, with a high proportion of self driving consumption. Whether there are sufficient parking spaces in and around the store, whether parking is free, and whether entry and exit are convenient are key factors. Points without parking spaces, congested parking, and excessively high fees will directly discourage a large number of consumer groups, significantly reducing customers’ willingness to visit the store and repeat purchase rates.
3、 Business district attributes: Matching business positioning is important
The consumption power, demographic attributes, and consumption scenarios vary greatly among different business districts. It is necessary to accurately determine the type of commercial district to which the store belongs, whether it is a comprehensive commercial district, a community commercial district, a university town commercial district, or a cultural and tourism commercial district. At the same time, based on the consumption habits and levels of mainstream consumers in the commercial district, match the positioning of our own video game center (children’s parent-child, trendy adult, comprehensive entertainment), and avoid the disconnection between the commercial district format and store positioning.
4、 Store Floor: Preferred Golden Operating Floor
The floor directly affects the natural flow of visitors to the store. The arcade belongs to the leisure and entertainment industry, and priority should be given to the golden floors 1-3 of the mall, with the first floor facing the street and the best location around the atrium; Try to avoid dead corners in high-rise rooftops and basements as much as possible. High rise or remote floors have scarce natural traffic, requiring significant investment in promotion costs to divert traffic and significantly increase operational pressure.
5、 Fire safety qualification: a mandatory prerequisite for store compliance
This is a hard core condition for the smooth opening of a video game arcade, with no room for flexibility. It is necessary to verify the original fire safety acceptance qualifications of the house in advance, and confirm whether the fire layout, area, floor height, passages, etc. of the venue meet the operating standards of entertainment venues. If the fire safety of the venue does not meet the standard once, it will be impossible to apply for a second fire safety record in the future, which will directly lead to the inability to obtain certificates and operate normally, avoiding a complete loss in the initial investment.
6、 Surrounding competition: understanding the saturation of regional competition
Conduct on-site research on the competitive landscape of the selected location area, and count the number of video game arcades that have already opened in the surrounding area, store size, and business status. If there are many video game arcades in the area and the market tends to be saturated, new stores entering will face fierce competition for customer sources, making it extremely difficult to start; If there is a blank competition in the region or if the competition volume is small and the equipment is outdated, it has great advantages and profit margins for opening a store.
7、 Competitive strength: benchmarking against competitors’ equipment and expertise
We should not only look at the quantity of competition, but also deeply explore the quality of competitors. Conduct on-site inspections of equipment categories, equipment age, equipment professionalism, store decoration, operational activities, and service systems in the surrounding gaming centers. Identify the strengths and weaknesses of competitors, and subsequently develop targeted equipment and operational plans to create differentiated competitive advantages and achieve differentiated traffic flow.
8、 Area planning: in line with one’s own investment budget
There is no need to blindly seek a large store area, as the core should be adapted to one’s own investment budget and the size of the commercial district. The suitable area for community small shops, commercial district boutique shops, and large comprehensive amusement parks is completely different. Based on their own financial situation, target customer groups, and equipment matching needs, they should plan the store area reasonably to avoid problems such as excessive rental waste caused by large area, limited equipment placement caused by small area, and insufficient experience.
9、 Overall investment: Control the overall investment cost
Comprehensively calculate the overall investment cost of the store, including rent, transfer fees, decoration fees, equipment procurement fees, labor costs, reserve working capital, etc. Make a detailed investment budget and calculate the payback period, based on the overall financial strength, position the store level (affordable, mid to high end, high-end internet famous stores), eliminate blind investment and over budget investment, and ensure stable operation of the store.
10、 Operating costs: Adapt to local salary and consumption costs
The site selection must be based on the actual operating costs in the local area, with a focus on the average salary level, store rent, utilities, materials, labor and other daily expenses in the region. Accurately calculate monthly fixed expenses, combine estimated revenue to determine profit margins, ensure daily operating costs are within an acceptable range, and avoid operating difficulties such as considerable revenue, high costs, and meager profits.
All ten dimensions mentioned above meet the standards, which is basically the optimal location for opening a store in a video game city, which can minimize business risks and enhance store profitability.
Professional Game City One Stop Store Support – Guangzhou Jingqi Amusement Technology Co., Ltd
For friends who want to open a video game arcade, do not understand site planning, do not know equipment matching, and lack operational experience, you can learn about Guangzhou Jingqi Amusement Technology Co., Ltd., a leading brand in the industry.
The company is located in a large video game console industrial park covering an area of over 50000 square meters. Its predecessor was a leading brand in professional game console research and supply, with more than ten years of industry research and production experience and strong strength. The enterprise is equipped with an industry-leading R&D team, modern multifunctional production workshops, a comprehensive quality inspection system, complete qualifications, and multiple global testing certificates. The product quality meets the import standards of multiple countries.
Our business covers the entire industry chain of research and development, design, production, sales, and operation support. We specialize in a full range of video game and amusement equipment, including children’s amusement machines, adult simulation machines, lottery machines, gift doll machines, racing and motorcycle machines, simulation shooting machines, coin operated basketball machines, dance machines, and other mainstream models. We also provide personalized services such as game machine software development, amusement equipment structure design, and original IP customization.
As a top tier production factory in the industry, the company produces over 60000 amusement machines annually, with a high coverage rate of equipment in large-scale video game arcades in China and over 10000 large-scale comprehensive amusement parks worldwide. It has rich practical experience.
We can provide one-stop store opening services for entrepreneurs, including comprehensive planning of video game arcades, precise machine matching, free design of 3D/flat renderings, opening guidance, and revenue boosting operation plans. We offer nanny style support throughout the process, making it easy to open a store even with zero foundation.
If you want to consult about opening a store, site selection, equipment, and operation related issues, you can privately message professional consultants to obtain exclusive landing solutions!