How to Start a Bowling Alley

Part 1 - How to start a Bowling Alley business - Background

A bowling alley business offers customers the equipment and facility to go bowling. Bowling alleys are great sources of entertainment for all age groups. Customers can bowl for fun or in competition through league play. The indoor locations offer activities during inclement weather, for work socials, or birthday parties.

Our guide is in 3 parts:

• Part 1 - How to start a Bowling Alley business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a bowling alley?

As is the case with most businesses, location is key to success. For a bowling alley, a large amount of space is needed, just for the lanes and bowling equipment alone. Adding additional services and features will take careful planning and facility management. Building from the ground up will add to overall costs considerably. Finding an existing alley or structure to renovate will save some. Franchising is also a great option, as the planning and building will be a process between you and an experienced team.

Rental on an appropriate space can range from $4,000 to $10,000, depending on the number of lanes and other entertainment options. It’s advised that you consider the population density of your area to determine the number of lanes needed. For example, a population of 10,000 in a five mile radius would need approximately 5 lanes.

Once you have secured a location, the additional costs for equipment can range between $18,000 to $45,000. Some cost variation will occur, depending on if the equipment is used or new. Additional costs may include:

• Re-designing the space, if it was not a bowling alley previously. Much of the space will be taken up by the lanes and equipment. Additional space should be planned for other activities and expansions or remodels, in the future.

• A commercial kitchen and bar set-up, if offering these services. Newer bowling alleys are offering high-end food and drinks, in an attempt to raise the status of the traditional bowling experience.

• Arcade and pinball games, ping pong tables, pool tables, dart boards, or any other additional entertainment. Some newer alleys are even offering batting cages or putt golf, as an all-inclusive entertainment design.

• Rental shoes, balls, lockers, and bowling accessories.

• Music and intercom systems, lighting, and seating

• Insurance

• Marketing plans

• Website or social media presence

What are the ongoing expenses for a bowling alley?

Regular maintenance of the alleys, balls, shoes, and machinery, as well as any other entertainment systems on site, will be your primary expense. Factor in food and beverage costs, if that is part of your operation. These costs will fluctuate, depending on the business size and scope, but $3,500 to $5,000 is a fair estimate for monthly expenses. Payroll costs vary, depending upon the area and how many employees you have on staff.

Who is the target market?

Customers will range in age and experience level. Many will simply want to bowl, whereas some will take advantage of the various other attractions. Currently, bowling alleys are seeing a resurgence in popularity from a white-collar crowd, who want a wide range of amenities made available, including food, drinks, other arcade-style games, and even karaoke.

How does a bowling alley make money?

A bowling alley makes its money from the hourly rental fees on shoes, balls, and lanes. There can also be revenue generated from the use of other entertainment and food services. This will vary, depending on what your alley provides. Many bowling alleys also offer deals for parties or special events. Depending on the scope of your food and beverage department, this area may also generate a sizable amount of revenue.

How much can you charge customers?

The average cost per game in the U.S. is approximately $2.00. Factor in shoe rental and some food or drink sales, and a customer could spend anywhere between $15 and $50 per visit. Including other entertainment options will only increase your earning potential.

How much profit can a bowling alley make?

The profitability of a bowling alley will depend on your demographics and additional services you offer. Once you have covered your start-up expenses, much of the money will be spent on preventative maintenance, supplies, and payroll. Non-league revenue has been on the rise more recently amongst national bowling alleys, with almost one-third of the money coming from non-bowling activities. Annually, a successful bowling alley/entertainment complex can generate upwards of $300,000.

How can you make your business more profitable?

As we have mentioned above, a successful bowling alley business will be wise to offer multiple options for entertainment, other than just bowling.

• Food and drinks can constitute a good percentage of your revenue. Give options which appeal to all ages and tastes.

• Create an environment which attracts more than just bowlers. Many modern bowling alleys are multifaceted in their approach to entertainment, which keeps customers coming back.

• Karaoke nights may be great marketing tools for the other-than-bowling crowd.

• Have special theme nights and offer price specials for the less busy hours of operation. Midnight bowl specials on weekends, for example, have proven very successful.

• Advertise for birthday parties and social or business gatherings.

• Sell balls, shoes, and bags, and offer embroidery services for league shirts and bags. Capture the extra revenue while the customer is at your establishment.

• Offering instructional classes in bowling can also be a great way to grow a business, as well as offering league play nights. This kind of regular crowd will help attract other customers.

• Rent out nights for other than bowling events, if you have the space in your building.

Day-to-Day and Growth

What happens during a typical day at a bowling alley?

Bowling alleys are not just for bowling anymore. Most successful lanes offer expanding variety of entertainment and food services. Therefore, day-to-day activities can include a number of tasks not entirely related to the sport of bowling, depending on the specifics of the location.

Tasks or duties can include, but are not limited to:

• Answering and returning calls for lane rentals and party space rentals.

• Cleaning and maintenance of rental shoes, balls, and lanes.

• Maintaining pinsetter systems and ball return tracks.

• Regularly contacting equipment vendors for both bowling and any other entertainment equipment, such as arcade games, pinball machines, food service, pool tables, or karaoke machines.

• Meeting and building relations with bowling league organizers.

• Marketing for the business and planning promotions or related business strategies

• Organizing and inventorying bar and food supplies

• Hiring, training, and communicating with employees to ensure great customer service and experience.

Administrative or management duties, such as paying bills, performing safety checks, ordering supplies, and calling in maintenance will also fill your days. It is advisable, once the business is up and running successfully, to hire a person specifically for managing these aspects of the business.

What are some skills and experiences that will help you build a successful bowling alley?

In today’s competitive entertainment market, you will be wise to offer a niche service that is missing for your particular area. The bowling alley business is different than it has been in the past, yet is still highly profitable. Get to know your potential clientele and what they are looking for in family and personal entertainment. For your dedicated bowlers, you will want to offer services, such as shoe repair, custom ball orders, and bowling-related equipment. Make sure your bowling customers know they are top priority. Then, offer other services which draw crossover customers. These customers may come for bowling initially, but return for other attractions. Conduct research to see what other entertainment and services will draw additional customers

What is the growth potential for a bowling alley?

Bowling alleys have held their popularity for decades and are still regular destinations for fun seekers. Although league bowling is not as popular as it once was, many working professionals are choosing to frequent alleys, which have numerous options for entertainment. If your alley can provide options for food and drinks as well, you will find a greater market share passing through your doors. There are also numerous franchising opportunities for bowling alley/indoor entertainment multiplexes. When a customer feels they have an all in one package for their entertainment, they will often return and pass the good word amongst their friends and colleagues. Make sure you research the levels of competition currently in play in your area.

What are some insider tips for jump starting a bowling alley?

Here are some tips from successful bowling alley entrepreneurs:

• Strive to keep your establishment clean and welcoming. You’re looking to attract all types of customers and appearance goes a long way.

• A well-lit parking lot and strictly enforced rules are also important.

• Make your inside environment family-friendly. The music should be appropriate and patrons should be given helpful customer service at all times.

• Preventative maintenance is critical to make sure your alley is up and running smoothly. You will save money this way in the long run.

• Keep aware of industry trends and changes in the needs and wants of your customers. Small, affordable changes, which represent current societal trends can make a big difference in the public perception of your business.

• Make the rules of your establishment clear and easy to follow. Enforce the rules and you’ll maintain the reputation of your establishment

How and when to build a team

You will need an initial start-up team for the business to get going. Consider hiring those who have customer service experience and are mechanically capable, as they may be called on to do minor repairs or maintenance, in addition to talking to the public. If you are buying into a franchise, there may be a team in place to help with the setup and opening. If you are starting independently, choose employees who demonstrate the ability to manage and work with others. Your team won’t be very large to begin with, so hiring competent and responsible employees is critical.

Part 2 - Is a Bowling Alley business the right fit for you?

Part 3 - Action plan to launch your Bowling Alley business in 90 days