liw 2012- researching the indoor play market (par seminar)
DESCRIPTION
Kate Costin - Play Providers Association Manager presents on the latest market facts and figures relating to setting up an indoor play centre. Using the tagline Different is good, Kate looks at market trends and statistics taken from the 2012 PPA Indoor Play Market ReportTRANSCRIPT
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