Play Meter

Issue: 1977 November - Vol 3 Num 21

By Joe F ucini
Traffic and
the Super Mall
Question: What does your arcade
need more than anything else?
Answer: Traffic, traffic and still
more traffic!
Let's face it, w ithout a high
volume of walk-in traffic, an ar-
cade's chances of making it are
about as good as a 4'2" Pygmy's
trying out for the Boston Celtics.
94
People feed coins to machines. The
more people, the more coins - and
the better an arcade's business.
Nowadays, no place has more
traffic than the enclosed super-malls
do . Sure the rent's astronomical,
but that's where the people are -
and that's just the kind of place an
arcade flourishes in .
A case in point is Red Baron
Amusements, Inc. The Milwaukee-
based company has 28 leased and
franchised arcades, all of which are
located in imposing, high-traffic
malls .
" We wouldn't think of putting an
arcade anywhere else," says Angus
Young, operations manager of the
five year old company. "We've
chosen to go with malls because
doing so offers many advantages
and eliminates a lot of problems ."
Red Baron's largest arcade is a
3000-square foot store in Dayton,
Ohio's gigantic Dayton Mall. The
Dayton arcade houses between 50
and 60 machines at anyone time,
and although its rent is a high $7 per
square foot, earnings more than
make up for it. Young estimates that
Red Baron's Dayton arcade grossed
more than $100,000 last year.
Young, who came to work for the
company in 1974, supports Red
Baron's "mall only" policy whole-
heartedly. "The most obvious bene-
fit is the traffic," he emphasized . " If
a mall has good anchor stores, you
can bet people are going to come
out . Also, malls are always holding
special events and shows. These
bring out people who aren't neces-
sarily there only to shop . These
people inevitably wind up playing
our machines ."
Aside from delivering sheer num-
bers of would-be game players, a
mall holds other delights for the
arcade operator. For one thing,
security is much less of a problem.
Malls are locked and heavily patrol-
led at night. Because of this, they
serve as a sort of " armed fortress,"
making it difficult for thieves and
vandals to enter an arcade after
operating hours .
If it's difficult for law breakers to
enter a mall at night, it's not much
easier for them to make their " get
away" during the day. Being
enclosed, malls don't provide the
available escape routes criminals
find in back alleys and side streets.
Another security advantage is the
"tree alert system " many large malls
employ today. In this system , a
description of a vandal, shoplifter or
robber is broadcast over CB radio or
walkie talkie to every merchant in
the mall, the mali's security force,
and the detectives at the anchor
stores. Through their broadcasts,
mall merchants and security per-
sonnel keep tabs on the perpetra-
tor's movements until he or she is
apprehended.
"I would say that the mall acts as
a buffer between the arcade and
troublemakers,"
noted
Young.
" Someone who 's up for trouble
finds the large malls intimidating,
November, 1977, PLAYMETtR
and the security force is often able
to stop things before they happen ."
Despite the hefty rent, malls do
offer several purely economic bene-
fits to arcade operators . To begin
with, you don't have to spend
money on promotions or compatible
businesses such as refreshments to
draw customers . Since most of the
stores who populate malls are part
of large retail chains, you can rest
assured that their advertising will
bring in all the customers you need.
An arcade can also get away with
keeping a few older games around,
even though they may have lost
some of their popularity, if it's
located in a popular mall. " Our
arcades fill up a lot because of the
mall traffic," says Young. " When
we're full, someone's bound to play
the older machines, simply because
they're the only ones available. Of
course, you couldn't keep too many
older machines around or you 'd lose
business. "
Red Baron is so high on the
super-mall that it will only locate in
ones with a million square feet of
space or more. " We wouldn't go
into a small enclosed mall , because
that would defeat the purpose of
being in a mall in the first place,"
explains Young .
The company always tries to be
playing , the line goes right past our
entrance, and people have someone
hold their place and play our
machines while they wait to get into
the movies," said Young .
Alas, all is not necessarily fun and
games (and profits) in a super-mall.
Most super-malls require a 10-15
year lease, and by now you know
their rents are expensive. So if your
arcade is located in a mall that fails,
and some do, you're stuck with high
rent and not as much traffic as you
expected.
All in all, though, malls can be a
gold mine for the arcade operator.
The traffic, the exposure, the
reduced vandalism, etc ., make them
too good to overlook, even with the
tremendous overhead .
So if you're thinking of opening a
new arcade, think mall . If malls are
too rich for your blood - well, still
think mall. Evaluate a prospective
arcade site in terms of how it
compares to a mall. Does it have
consumer-drawing shops nearby?
Are large national chains locating in
the area? Is the site too accessible or
are escape routes too available for
robbers, thieves and the like?
In the final analysis, a mall is good
for your business only if it offers
these advantages - and the same
goes for any other location too.
an original tenant of a mall ,
contacting the developer before
construction is completed . The
feeling is that "getting in on the
ground floor" allows Red Baron to
modify its stores to its specific
needs .
One thing the company always
looks for before deciding on locating
in a mall are the anchor stores. If a
large national department store
chain decides to set up shop in a
new mall , Young and Red Baron
president Dan Winter know it's go-
ing to be a good site .
" We knew this was going to be a
high traffic mall ," said Young,
speaking at the company's Dayton
arcade . " Sears, J.e. Penney, and
Federated decided to put stores
here. They do extensive market
research , so they know where the
consumers are going to be ."
Red Baron's arcade in the Dayton
Mall has several other good things
going for it. Across the corridor are
two movie theaters and a popular
pizzeria . Two more theaters are
located about 40 yards away. As
you probably guessed, the restau-
rant and movies draw an army of
teenagers. How's that for an arcade
operator's dream come true?
"When a movie that' s popular
with high school and college kids is
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