Play Meter

Issue: 1985 November 15 - Vol 11 Num 21

Jack Mullinax stands in front of S crooges, a neighborhood
bar he co-owns in suburban north A tlanta.
Beleaguered bars calling
on coin-op help
By Mike Shaw
M any coin-operated amusement
people are fond of saying "the jukebox
is the backbone of the industry"- ad
nauseam . Like most trite sayings, the
phrase is so commonly used because
it has seemed so true for so long. But
also like most trite sayings, it is shal·
low, lacking an explanation of why the
jukebox historically has been the
industry's most prevalent piece.
From a different perspective, it
could be said that the bar is the back·
bone of the coin·op industry, and the
jukebox has achieved its status only
because no bar would offer a drink
without a little musical background .
The argument could be extended-
perhaps music is the backbone of the
bar industry- but the point is that it is
important how coin·op equipment is
perceived by the coin·op industry's
most traditional customer, the bar
industry .
14
Soc ial c ontributions
Scrooges, a neighborhood tavern
in a rapidly growing suburban area
north of Atlanta , features down-home
friendliness, live music and a great
two-pork-chop lunch . Surrounded by
"fern" bars that serve light beers and
blended fruit drinks to a procession of
single yuppies, Scrooges has remained
determined to succeed by catering to
a less frenetic group of primarily blue·
collar customers. Its owners, two
young Atlanta entrepreneurs who
operated an arcade during the years of
the video boom , say they rely a great
deal on coin-operated entertainment
to help establish a friendly and relax·
ing atmosphere .
"The games bring in only a small
percentage of our earnings, but they
help us keep customers and make
friends ," said co-owner Jack Mullinax.
"Often a customer who comes in by
himself will order a drink and then put
a quarter in a game. Soon he'll be talk·
ing with someone playing next to him
or with someone who is standing or
sea ted close to the game . He'll tend to
stick around for a while and get com-
fortable here , whereas if it weren't for
the games, he'd be a lot more likely to
have his beer and leave."
Scrooges offers a row of five or so
pinball machines and upright videos
against the wall at its entrance, as well
as three or four countertop games
around an island bar. In the back of
the room is a shuffleboard and, of
course, the ever-present jukebox.
Even though the games bring a profit
of about $1 ,000 a month for Scrooges,
Mullinax insisted they are more
important for their social contribu-
tions .
"The machines serve to create
act ivity in different areas of the bar,"
PLAY METER. November 15, 1985
Mullinax said. "They help us build
faithful customers."
Bar industry magazine
tracks coin-ops
Although owners like Mullinax
might look to games more for their
entertainment value, there is evidence
from some bar-industry observers
that the revenues from those games
might soon be considered more criti-
cally as to their contribution to bottom
lines .
"More and more bars are having to
find alternate ways to make money ,"
said James Daniels, an editor of Night
Club & Bar magazine.
According to Daniels, local legisla-
tion is putting an end to traditional
tavern attractions. Communities from
coast to coast are outlawing promo-
tions that encourage excessive drink -
ing.
"Outlawing two-for -one happy-
hour promotions started in New
England about a year ago," he said ,
adding that the trend is spreading.
"You'd have to call it at least a small
movement."
The push to moderation also is
being helped along by growing con-
cern over personal health as well ·as
rigid enforcement of drunk-driving
laws.
"People are getting scared about
driving drunk ," Daniels said. "And
bars are very concerned with third -
party liability laws."
According to Daniels, 37 states
have enacted legislation that makes
bar owners and operators responsible
fo r the automobile accidents of cus-
tomers who leave their establishments
drunk.
But, Daniels pointed out, better
bar owners are not complaining. Many
are happy not to have to compete with
two-for -one drink giveaways and few
have balked at efforts to keep drunks
from wreaking havoc on the highways.
Instead, owners are trying to com-
bat slackening alcohol sales by putting
more emphasis on food and other
alternatives. According to Night Club
& Bar, food now accounts for about
65 percent of sales for U .S. establish-
ments that serve alcohol , up from 60
percent a year ago.
They also are looking to live enter-
tainment, good sound systems, attrac-
ti.ve lighting, and coin -operated
games.
"Countertop pokers and trivia

PLAY METER. November 15, 1985
games are very popular," indicated
Night Club & Bar Editor Laurie
Heavey. "A lot of owners also believe
the new pay telephone will be profit-
able, but they have been hesitant to
commit to any so far because of the
poor equipment that's been available.
"Your industry's going to need to
do a slick selling job on those phones,"
she said.
Bar owners have also been telling
their trade publication that jukeboxes
and video games are producing mean -
ingful revenues, as are pool tables and
dart games, especially when orga-
nized activities are built around them.
" Miller Brewing came to a recent
bar-industry trade show to promote
their tournaments as a way to offset
losses resulting from outlawed happy
hours ," Heavey noted .
Some would dump games
While some bar owners are look-
ing for coin-operated equipment to
help bolster sales, others are not so
eager.
"I see very little interest in the
games anymore ," said Mike Seligman ,
who owns and operates The Gin , an
Ole Miss -student hangout in Oxford ,
Miss. The Gin offers customers a
handful of videos and a couple of
shuffle alleys . Seligman owns the
shuffle alleys , and he is not happy with
the way his videos have been operated .
"I've had trouble getting the games
I want , or even enhancements like a
speed-up chip for a Poe-Man game I
have ," he complained. "Operators
don 't seem to want to invest in any
new machines. I think if I got better
games, they would become a more
significant part of my revenue , but at
this point , I'm thinking more about
taking them out. "
Opportunity knocking
on barroom doors
With alcohol sales slipping and
likely to continue to do so, bar owners
are looking for other sources of reve-
nue. While food is by far the most
popular alternative , they also are con-
sidering other possibilities, such as
coin-operated games, not just for the
money they produce but for their
ability to provide entertainment and
keep customers. That points to
increased and substantial opportu-
nities for operators who can match
locations with appropriate coin-op
equipment and activities.

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504/ 488-7003
15

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