Researching the UK Indoor Play Market
•Download as PPT, PDF•
3 likes•4,660 views
The UK indoor play market is highly fragmented with many business failures and closures recently. While some new operators are raising customer expectations, the tough economic conditions have made it difficult for both existing operators and potential startups to survive. Many sites have had to diversify their offerings or change hands to continue operating. However, joining an organization like the PPA can help businesses learn from others' mistakes and push the industry forward during difficult times. New sites that differentiate their unique product and visitor experience through elements like branding, food & beverage, and excellent customer service may have more success.
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (7)
Similar to Researching the UK Indoor Play Market
Similar to Researching the UK Indoor Play Market (20)
More from theppa
More from theppa (15)
Recently uploaded
Recently uploaded (20)
Researching the UK Indoor Play Market
- 1. Researching the Market Is there an opportunity?? Kate Costin PPA Association Manager
- 2. Why might you want to open a play centre? • The centre near me is always heaving “they must be making loads of money”?? • I want to start my own business to spend more time with my young family?? • A local play centre closed- there must now be a gap in the market?? • There are no play facilities here and so no competition?? • Running a play centre looks easy and I can do better than what’s already there!?
- 3. What does the UK market look like? • Highly fragmented supply structure (800~ Private Operators) • A new breed of operator creating higher customers expectations • However MANY business failures • Current sites having to diversify to survive • Tough economic conditions for both existing operators & potential start ups raising finance • Increased competition and costs for operators
- 4. Stockport is the new Warrington!!!! • The Indoor Play z Mushroom effect z z z z
- 5. AND the realities are…
- 6. Many sites closing or changing hands … UK’s largest multi-site operator into liquidation September 2011 “CASH FLOW IS KING”
- 7. The economy hitting hard Headline Figures 2012 2009 2008 2007 Admissions 44% 43% 41% 39% Parties 23% 20% 24% 26% Food and Beverage 33% 38% 35% 34%
- 11. Any cause for optimism ?? • THE PPA!!! Joining can really make the difference to your potential business, pushing the industry forward! • Learning from other peoples mistakes, and in some cases buying failed sites or businesses. In a recession mediocrity will not exist…only the best will survive. • The PPA is working hard to develop an awareness of the benefits of play centres – opportunities around the Physical Activity agenda • The popularity of the stay-cation • Safety of the Leisure £ when it comes to children
- 12. Great new sites opening
- 13. A typical site... Headline Figure 2012 Data Average size of site 9,936 sq ft Average total annual visitors 85,984 Average total annual turnover £432,929 The UK Indoor Play Market Report 2012 will be published by the PPA soon
- 14. Latest Industry Trends • Visitor Numbers Dropping • 10% child visitors between 2009 and 2012 • Leisure is the best location for Total number of visitors • Wales and the West Midlands are the regions with the fewest visitor numbers • A typical smaller site of 6,000 sq ft = £69,595 visitors pa at 11.6 visitors per sq ft • A typical larger site of 13,500 sq ft = £102,373 visitors pa at 7.6 visitors per sq ft • Over 50% of costs are staff (average of £120,000+ pa
- 15. “DIFFERENT IS GOOD” • What is your product, make sure it is unique and DONT JUST BE ANOTHER PLAY CENTRE • Create a visitor experience with extended dwell times • Business Model – what’s yours? Stick to it across all elements of your business • Branding – Keep it consistent • Food and Beverage, Party, Secondary Spend: Give customers the opportunity to spend money with you • Customer Service – Your best form of marketing and a way to get loyal customers
Editor's Notes
- Introductions
- New operators- do any of these ring a bell? How many existing operators thought this and now know the realities? If you are about to open a centre…speak, to some existing operators, the PPA, and take information provided by some manufacturers with a pinch of salt! Impartial Advice is worth its weight in gold!
- KC New operators- do any of these ring a bell? How many existing operators thought this and now know the realities? If you are about to open a centre…speak, to some existing operators, the PPA, and take information provided by some manufacturers with a pinch of salt! Impartial Advice is worth its weight in gold!
- KC New operators- do any of these ring a bell? How many existing operators thought this and now know the realities? If you are about to open a centre…speak, to some existing operators, the PPA, and take information provided by some manufacturers with a pinch of salt! Impartial Advice is worth its weight in gold!
- A typical play centre at 3pm on a weekday, or a sunny day during the holidays! Business is very weather dependant!! Business can be affected by lots of different things! (End of month, credit crunch, competition, Christmas plays, holidays…) Typical investment of £200,000 Credit crunch affecting business in existing sites- banks not keen to lend
- KC A depressing indication of operators caught in the Great Ball Pool Rush…like the gold rush, without the gold! Opportunities to purchase failing sites, older style sites requiring updating…and in some cases new sites, which may have failed to meet their repayments. All opportunities, but buyers beware!
- A depressing indication of operators caught in the Great Ball Pool Rush…like the gold rush, without the gold! Opportunities to purchase failing sites, older style sites requiring updating…and in some cases new sites, which may have failed to meet their repayments. All opportunities, but buyers beware!
- A depressing indication of operators caught in the Great Ball Pool Rush…like the gold rush, without the gold! Opportunities to purchase failing sites, older style sites requiring updating…and in some cases new sites, which may have failed to meet their repayments. All opportunities, but buyers beware!
- A depressing indication of operators caught in the Great Ball Pool Rush…like the gold rush, without the gold! Opportunities to purchase failing sites, older style sites requiring updating…and in some cases new sites, which may have failed to meet their repayments. All opportunities, but buyers beware!
- Recently we are seeing more and more competition. In America the range of venues offering parties is extraordinary, from shops, to bakers, to garages to hairdressers. We now see parties in the UK becoming an attractive addition to many venues…churches, yes churches, to gyms. Offers, new concepts, new attractions all come with the threat of taking away our target market!
- NS Enough doom and gloom…If at the end of all this you still think that the indoor play centre is the right career choice for you, then this quote may fill you with optimism? Can the new style of play centre, like those operated by majority of our members, see the rise out of the ashes…a professional product. Low lying fruit will be picked off, only those that grow in the top braches will survive. Mediocrity will not exist…only the best will survive.
- KC
- NS
- KC
- NS Stand out from the rest, The definition of stupidity is doing the same thing over and over again and expecting different results." — Albert Einstein ... Even if something seems to be working well in one centre, it may not transfer to your location. All these things are vitally important, but this list is only a small selection, get one of these wrong, and the results can be disastrous .