Gaming cafes have become some of the most popular places in cities worldwide as gamers of all ages are seeking third spaces to engage in their favorite pastime. Back in the 90s, the Cybercafe concept was a global hit, especially in countries with a strong gaming culture like South Korea and Japan. All of these places were set up in pretty much the same way, with basic PCs and accessories, ergonomic chairs, and a simple snack bar where people can order refreshments. In comparison, modern day video game cafes are bigger, not only in scale, but they also feature a lot more gaming options, a variety of consoles, restaurant quality food and drinks, and other forms of entertainment that encourage players to stay a little longer.
Since gamers are seeking out immersive experiences beyond console gaming, it is expected that more people will be heading to gaming cafes in the coming years. As the arcade gaming market is predicted to increase by $2 billion between 2025 to 2029, those who are planning to open a business should capitalize on the gaming cafe boom and create a startup that will cater to the demand for social gaming. Setting up a gaming cafe can be costly though, so cafe owners should adopt strategies to help the business thrive long after the launch. Here’s a guide to set up a video cafe business for long-term growth.
Choose a Concept
Just like any other business, you’ll need to establish your brand and identify what type of gaming cafe you want to have. While you can certainly have an arcade-type setup wherein people can enjoy lots of different games, having a concept or theme for your business may be a smart move since this sets your venture apart from other gaming cafes in your community. Doing so will also decide what kind of customers you wish to attract.
For instance, you can have a retro gaming cafe featuring games from the 80s and 90s, which is sure to be popular among Gen X and Millennial gamers. If you’re looking to attract Gen Z gamers and those who love racing games, plan on having a racing-centric gaming cafe to give customers a thrilling and immersive arcade experience. Those who’d like to cater to casual female gamers or fans of comfort games can build a cafe dedicated to soothing and relaxing games like ‘Stardew Valley’ or ‘Animal Crossing.’
Secure Your Location and Licenses
Once choosing a concept, you’ll need to pick a location for your business. Ideally, your gaming cafe should be somewhere that has a lot of foot traffic, like a mall, an amusement park, or a place that’s near colleges, restaurants, and other family-friendly areas. Having a gaming cafe in any of these locations may boost your revenue by 20 to 50 percent, so aim to get a place that’s highly visible and accessible to your target market.
Other things that you need to secure are your licenses and permits. Having these will legalize your business and protect you and your partners from potential issues, so take care of any necessary paperwork as soon as you can. You’ll also need to register your business to obtain tax benefits and gain access to capital to expand your cafe. To limit your personal legal liability, consider registering your cafe as an LLC. This type of business structure has fewer record-keeping requirements, making it ideal for busy gaming cafe owners. If you need help with the business registration process, use this LLC University coupon code to get a discount on LLC formation services.
Experts can handle the registration paperwork for you while you focus on other important tasks to get your gaming cafe off the ground.
Marketing and Special Events
Marketing is essential to reach potential customers and to spread the word about your gaming cafe. Apart from creating a website, you also need to have Instagram, Twitter, and TikTok pages where you can post content and promos and have interactions with customers. To promote your business in your community, try partnering with local businesses and colleges in your area and offer discounts to students, as well as people signed to loyalty programs.
You may also want to think about having special events on certain days to keep customers coming. For example, you can have Ladies Night on Wednesdays and give female gamers a buy one, get one deal on drinks and cocktails. Fridays can be Disco Nights wherein you can have a DJ or a band play disco music, then on Sunday afternoons, you can give families a free pizza if they play for a minimum of two hours.
Gaming cafes are about to become more popular as people want to have face to face interactions while playing their favorite games. Take advantage of the demand for physical and social gaming by creating a fun space in your community, and follow the tips above to ensure business growth year after year.
