Researching the MarketIs there an opportunity??

Kate CostinPPA Association Manager

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!?

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

Stockport is the new Warrington!!!!• The Indoor Play Mushroom effect

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AND the realities are…

Many sites closing or changing hands …

UK’s largest multi-siteoperator into liquidation

September 2011 “CASH FLOW IS KING”

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%

Industry Benchmarks

Admissions, Parties, F+B

Increased Competition

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

Great new sites opening

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 MarketReport 2012 will be published by the PPA soon

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

“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