How to Create a Profitable Indoor Play Area

Building an indoor playscape is an exciting venture.Ā It’s fun to choose all theĀ innovative equipment designsĀ and think of the kids who will enjoy them. But it’s also important to focus onĀ strategizing for your business.Ā Indoor playgrounds can be a profitable venture with the right planning and consideration. With a new playground, your businessĀ can attract new customersĀ andĀ provide recreation and fun to local communities.

In this guide, you’ll learn the various ways you can make more money from your indoor play area. We’ve included all the information you need to craft a successful business plan to get you started. With all our tips and tools, you’ll be well on your way to creating a creative, entertaining space for kids of all ages.

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Indoor Playground BusinessĀ Profit and Return

The value of the global family entertainment center market reachedĀ $34.6 billion in 2024. The industry will only continue to grow, as experts expect it to be worth 56.24 billion by 2029. TheĀ demand for unique experiencesĀ is a key driver for this growth.

While indoor playgrounds can be profitable, your profit margins may vary depending on your business model, overhead costs and location.Ā Some businesses use a family entertainment center as their primary source of revenue. For other companiesĀ ā€” likeĀ malls and retail outletsĀ ā€”Ā an indoor playgroundĀ attracts families and boosts revenue.

Overhead costsĀ can greatly impact your indoor playground’sĀ profits. If you plan on renting a space,Ā rent may be your biggest overhead expense. A large building will cost more to rent,Ā but moreĀ space allows you to build more attractions and house more families at once.Ā YouĀ can also rent out rooms for birthday parties or fitness classes.

You should also consider the location you pick for your business.Ā Commercial rent costs more in areas with higher visibility.Ā However, familiesĀ usually findĀ indoor playgroundsĀ via word of mouth and internet research. Since visitors plan ahead of time,Ā you don’t have to worry about visibility as much. You could takeĀ advantage of lower rent costs at a more remote locationĀ to increase your profit margin.

As you begin planning yourĀ indoor playground, research your local market to determine business costs in your area.

Ways to Make Your Play Area More Profitable

When it comes to new businesses, hard work and creativity are an unbeatable combination. The indoor playground business is a unique industry, withĀ multipleĀ opportunities to increase profit margins.Ā Consider the ideas below to makeĀ your business a success.

1. Find Ways to Lower “Dead Time”

MostĀ family entertainment centersĀ find their busy periodsĀ align withĀ school schedules. Weekends andĀ schoolĀ breaks areĀ typically theĀ most profitable times of the year.Ā However,Ā businessĀ owners have toĀ pay rent andĀ overheadĀ costs year-round.Ā The best way to increase profit is to findĀ ways toĀ attractĀ people during off-peak times.

Here are a few ideas you can try toĀ increase traffic to your playground:

  • Offer fun adult activities, such as morning or evening fitness classes.
  • Open your doors to local businesses with custom team-building events on weekdays.
  • Run one-day camps during local school professional development daysĀ ā€” working parents will appreciate the child care.
  • Create opportunities for school field trips.
  • Offer after-school groups, such as aĀ dodgeballĀ league.
  • Run a daycare service.
  • OfferĀ toddler-level activities and market to families with non-school-aged kids.
  • Work with local homeschooling groups to offer gym classes or enrichment activities.

2. Invest in Internet Marketing

Most parents will choose what to do with their weekends via online research.Ā They may use search engines like Google, which is an opportunity for your website to catch their attention. You’ll need to use effective online marketing tactics ā€” like search engine optimization, content marketing or pay-per-click advertising ā€” to improve your chances of potential customers finding you.

Itā€™sĀ also a good ideaĀ to build a social media presence. Eye-catching, colorful equipment makes for great Instagram and Facebook photos.Ā You canĀ encourage families toĀ post about their experiences at your playground on their profiles.Ā When a parent posts a picture of kids enjoying your playground, their network will see the benefit of visiting your business. Word-of-mouth via social media is a powerful tool.

3. DesignĀ SpacesĀ With Fun in Mind

Profitability requires more than foot trafficĀ ā€” you’ll need toĀ build customer loyalty and increase the length of time guests spend at your business.Ā For example, adding new, innovative equipment will entertain kids for longer. Custom-built facilities and one-of-a-kind attractionsĀ could also encourage people to stay longer and choose your business over others.

Creating a space that beckons people back also requires great bathrooms, retail space and check-in areas.Ā Each spaceĀ should have a smart traffic flow and look attractive to kids and adults.Ā You could workĀ with a designerĀ whoĀ has experience in the entertainment industryĀ to create the layout of your space.

4.Ā Host Exciting Events

Events are a great way to generate extra income for your business.Ā Creating high-qualityĀ event experiences canĀ introduce new families to your business. If kids have a good time, they mightĀ returnĀ or want to have their parties at the same place.

The following are just a few ideas for events you could host at your playground:

  • Birthday parties:Ā Whether you close the space for birthdays or give party-goers a private room, a great birthday event can be the lifeblood of your business.Ā You could offer multiple birthday packages at varying price points and include more activities for higher price tiers.
  • Holiday events:Ā Another way to appeal to kids and their families is throughĀ holiday events andĀ specials. Have holiday characters visit your play space and offer picture packages. YouĀ couldĀ alsoĀ sellĀ holiday membership specials to increase revenue.
  • Community events:Ā You can host community events at yourĀ indoor playgroundĀ space throughout the year to bring in new customers.Ā This willĀ showcase your commitment to serving the public.Ā Events like game nights, food drives, scavenger hunts and crafting sessions could be fun.

5. Sell Food and Beverages

Selling food at your business can increase indoor playground profits considerably. While youā€™ll have to invest more money and get additional licenses, food can be a great addition to your business. Guests will stay longer whenĀ they canĀ refuel and rehydrate, and youā€™ll gain another source of revenue for your business.

6. Remember the Parents

Families are more likely to stay longer when thereā€™s something for everyone. While most of your facility will cater to active kids and their wild imaginations, itā€™s parents who take them there in the first place. Parents will appreciate the break from their routines provided by your playground,Ā butĀ theyā€™ll also want something to do while relaxing. A coffee bar or an internet cafe can keep parents occupied while their kids play.

7. Include Kids of All Ages

Just like their parents, small kids can feel left out if there arenā€™t activities they can do.Ā The tremendous size of many indoor playgrounds can also feel intimidating to smaller kids. To make them feel more at home, you could create a separate area designed specifically for them. Set aside a smaller roomĀ for your littlest visitorsĀ and fill it withĀ age-appropriate play equipmentĀ and activities.

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8. Get High-Tech

Now that devices like smartphones and tablets are common, kids need an extra dose of ā€œwowā€ to feel impressed.Ā Upgrading toĀ an interactive play experienceĀ is a great way to keep kids engaged both mentally and physically. Play structures thatĀ turn theĀ experience into a gameĀ orĀ respond to kidsā€™ movementsĀ through interactive lighting technology add to the fun, encouraging healthy competition and exploration.

9. Build Your Local Reputation

While advertising online through websites and social media is great for reaching customers in other areas, word-of-mouth is the most effective way to build a solid reputation. After all,Ā 88%Ā of consumersĀ report they trust their friends more than traditional media.

Partnering with local businesses and schools is an excellent place to start. You could provide nearby schools with free or discounted tickets to give to students at the end of the academic year.Ā This wouldĀ generate interest among local kids,Ā helpingĀ to build your regular customer base.

Indoor Playground Business Plan

Creating a great business planĀ isĀ the first step to success for a profitable indoor playground.Ā AĀ business plan can help you understand your financial startup costs and how many customers you need toĀ make enough money. They also prompt you to research your competition and outline how you plan to succeed. Your business can flourish with this plan as its foundation.

Create your business planĀ by following these steps:

1. Executive Summary

StartĀ by providingĀ an overall summary of the market opportunity, proposed business, location, management structure and loan requests. You should alsoĀ explainĀ your mission and objectives for your indoor play area business.

2. Company Description

Next, youā€™ll describe the concept of your proposed indoor play area or entertainment center. What isĀ your business’s unique offering? Are you the only family fun center in the area? Are other companies targeting older kids while yours is geared toward toddlers? Lay out your startup costs and a budget for recurring expenses.

Also, youā€™ll want to summarize your overall business model. Will you offer monthly memberships, hourly reservations, pay-to-play equipment orĀ aĀ combination? Give examples of other successful businesses in your area and how you intend to compete.

3. Market Analysis

In this section, youā€™ll lay out your potential customer base and competition.Ā ConsiderĀ the population and demographics in your area. A community of 10,000 people can mean a very different marketplace depending on who lives nearby. A retirement town may have a large population but few kids. You can find demographics in your city or town using U.S. CensusĀ data.

Youā€™ll also want to analyze your competition and discuss how you plan to compete. Other indoor playgrounds in your region can be significant competitors. Because of the unique value of indoor play areas, people often drive from far away to visit them. Building one in a new city can give families a great experience with less of a drive.

Other competitors might include parks and recreation or after-school programs. Bowling alleys and movie theaters often top familiesā€™ lists of birthday party venues.

4. Organization and Management

Here, youĀ shouldĀ outline the structure of your company and who will manage it. Youā€™ll list requirements for managers, plus full-time and part-time employees.Ā For example, youĀ may want employees to have CPR certifications or experience with kids.Ā List your rules in this section, such as how many kids one employee can supervise.

This part of your business plan should also outline your pay structure if you use one. A pay structure lists the hierarchy of salary levels within your business. This information will help you determineĀ how many employees you need to hire and how much payroll will cost.

5. Service or Product Line

This is the place to describeĀ your specific products and services. First, youā€™ll outline how you plan to use your space. YouĀ canĀ alsoĀ outlineĀ specific structures and main attractions you plan to include.

If you plan to offer other servicesĀ ā€”Ā such as private parties or fitness classesĀ ā€”Ā outline each of these services and their price point for consumers.Ā Include a list of theĀ concessions or merchandiseĀ you’ll sell in this section, too.

6. Marketing and Sales

Next, youā€™ll discuss your marketing strategy and budget.Ā This should include a detailed plan for the types of marketing tactics and platforms you will use and how much you’ll spend on each one. For sales, you can calculate how many kids or families youā€™ll have to bring in each month to have a comfortable profit margin.

7. Financial Projections

As part of your financial projections, youā€™ll look at how your overhead and projected inflation will change your indoor playgroundā€™s business costs over time. YouĀ shouldĀ also calculate a break-even pointĀ showingĀ how muchĀ monthlyĀ revenueĀ youĀ need to break even on your investment.

8. Appendix

Include any supporting documentsĀ forĀ your business planĀ in an appendix. Your appendix can include research on demographics, competition and financial costs. It may consist of additional charts that demonstrate where you got your numbers from.

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Industries That Benefit From Indoor Playgrounds

While play areasĀ often formĀ part of an entertainment destination,Ā they’re also perfect for addingĀ a bit of indoor fun toĀ other businesses. Indoor playgrounds attract business from young families. They can help parents manage their active kids while they shop and offer a superior experience.

BelowĀ are some industries that benefit from indoor play equipment.

Retail

Malls and toy storesĀ can benefit fromĀ indoor playscapesĀ for their guests. Indoor playgrounds turn retail spaces into destinations,Ā bringingĀ foot traffic andĀ keeping visitorsĀ there longer. The added entertainment will put visitors in the right frame of mind to continue shopping.

Playgrounds can alsoĀ benefit parents. With the proper setup and supervision, a playscape can serve as a drop-off area for busy families. They can get their shopping done whileĀ your staffĀ watch their kids.

Child Care

Day careĀ is a considerable investment for many families. An indoor playground canĀ set your daycare center apartĀ and make your services worthwhile. Parents see playground equipment as beneficial becauseĀ it helpsĀ with child development and social skills. Indoor play areas alsoĀ encourageĀ kidsĀ toĀ exercise andĀ release their energy in a positive way.

WithĀ indoor equipment,Ā kids can playĀ every day, regardless of the weather.Ā This willĀ make your staffā€™s job more manageable, andĀ parents and kids alikeĀ will beĀ happy toĀ returnĀ each day.

Health Care

AĀ waiting room full of soft playĀ equipmentĀ makesĀ going to the doctorĀ a funĀ activity.Ā AddingĀ someĀ unexpected features to yourĀ health careĀ business will spreadĀ theĀ word that your office is the best in the area for small kids.

Soft playground equipment can also be useful forĀ childrenā€™s physical therapy. Custom-designed, kid-centric equipment in childrenā€™s hospitals can make healing fun for families. Youā€™ll also encourage physical exercise at an early age, keeping your patients healthy.

Restaurants

Turn your dining areaĀ into a kid’s paradiseĀ with an indoor playground. Eye-catching playground equipmentĀ attractsĀ families with kids. Helping families occupy their busy kids can make mealtime more relaxed, and you can show your commitment to childrenā€™s health.

Movie Theaters

As exciting as it is for kids to see their favorite characters on the big screen, itā€™s normal for their attention to wander during the slower moments of a movie. AddingĀ playground equipment to movieĀ theatersĀ letsĀ kidsĀ playĀ before or after the show,Ā helping them focus on the movie better.

Museums, Zoos and Aquariums

With custom-designed playgrounds, your business can provide anĀ educational discovery zone for kids. Kids love the chance to get active, and parents appreciate theĀ opportunityĀ to help their kids learn and grow. Zoos and Aquariums can offer animal andĀ aquatic-themed playgroundsĀ to occupy kids whenĀ it rains. By designingĀ customĀ indoor equipment, you canĀ build a themed playscapeĀ that fits your purpose and mission.

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Frequently Asked QuestionsĀ AboutĀ Starting an Indoor Playground Business

We’ve compiledĀ some of the most common questions and concerns about building an indoor playground.

How Much Does It Cost to Build an Indoor Playground Business?

Indoor playgrounds are highly customizable and canĀ accommodateĀ many budgets.Ā The factors that impact cost the most are the size of your venue and the types of equipment you use. Adding an indoor playground to an existing business is cheaper, and you can choose cost-effective solutions to stretch your budget. For example, we offer a range of affordable, ready-to-ship Soft Play elements inĀ our Pick & Play collection.

StartingĀ a family entertainment centerĀ from scratch will require a bigger budget. The startup costs would include land, construction and playground equipment. Renting an existing, smaller location would be more economical. However, investing more will give you a larger space and more budget forĀ custom indoor playground equipment.

The best way to find out how much it costs to build an indoor playground business is toĀ researchĀ your local real estate prices. You can also contact your playground equipment vendor to discuss designs and budgets.

Is an Indoor Playground a Good Business?

An indoor playground offers families a weekend activity when itā€™s raining or too cold to go to the park or play outside. They can also provide air-conditioned comfort in the hot summer. The success of your indoor playground depends on the work the business owner puts in and the demand they generate.

What Is an Indoor Playgroundā€™s Annual Income?

While multipleĀ factors influence an indoor play centerā€™s income,Ā the most important isĀ how many customers you serve. A large facilityĀ with exciting attractions can attract more guests andĀ keepĀ themĀ entertained longer. However, youā€™ll also have to pay more in rent and payroll. A small facility can seek more indoor playground annual incomeĀ by offering additional services, like day care, classes and dining.

Are Soft Play Centers Profitable?

Soft play centers are indoor playgrounds featuring padded floors and equipment. They attract families with a mid-to-high level of disposable income who seek entertainment and childcare. The more diverseĀ your offerings, the more profitable your center can be. For example,Ā adding a high ropes courseĀ or aĀ water play areaĀ can attract older kids, while younger kids enjoy the soft play area.

How Much Does It Cost to Operate an Indoor Playground Business?

In addition toĀ startup costs, youĀ mustĀ factor ongoing expenses into your indoor playground business costs. These expenses include:

  • Overhead costs
  • Lease
  • Regular deep cleaning
  • Scheduled maintenance checks
  • Payroll
  • Staff training
  • Marketing
  • Legal compliance

Youā€™ll need to account for these operating costs toĀ determineĀ if you can turn a profit.Ā OneĀ of the best ways to do this is to use this information as the basis for your pricing. Plus, selling extrasĀ ā€” such as snacks or merchandiseĀ ā€”Ā and providing a diverse experience can entice customers to spend more, so you canĀ alsoĀ factor those costs into your operation.

What Are the Determining Factors for Initial Indoor Playground Costs?

The cost of creating and installing an indoor playground will vary depending on a few factors, such as:

  • Scale:Ā The size of your playground will affect the size of your project, and a bigger space will require a budget to match. For example, a small indoor playground at an existing building will costĀ lessĀ than a large family entertainment center in a new building.
  • Design:Ā Attractive playgrounds draw kids in, so itā€™s vital to design equipment and a play space that is beautiful and functional. While you may need to pay more for design features, the investment will quickly pay off.
  • Shipping:Ā Playground equipment is often heavy and may require specialty shipping. Including shipping costs in your budgetĀ will help you getĀ the equipment to your locationĀ with fewer surprises.
  • Installation:Ā Proper installation is crucial for the safety of everyone who uses your playground equipment. It is wise to budget for specialty installation services if your equipment is in various shapes and sizes.

DoĀ YouĀ Need a License to Open an Indoor Playground Business?

You need two basic licenses for an indoor playground in the United States. They include:

  • General business license:Ā You need a general business license for registration and tax purposes. This licenseĀ normallyĀ costs about $300.
  • Doing Business As (DBA) license:Ā A DBA licenseĀ letsĀ you do business using your companyā€™s operating name, which might be different from its registered legal name. Some states donā€™t require DBA licenses, but you should always check before trying to do business using a different name.

Other licenses you may need depend on your state and the nature of your business. For example, you may need additional licenses if you offer a childcare service.Ā YourĀ stateĀ may alsoĀ require a food-handling license if you plan to sell food.

What Demographics Use Indoor Playgrounds?

While the primary focus of indoor playgrounds is kids, parents and young adults are also important demographics to target. Many parents let kids use indoor playgrounds when they need to perform other tasks, such as shopping or completing paperwork in a health care space. Parents may also use indoor playgrounds to bond with their kids or enableĀ themĀ to connect with their peers through the power of play.

Young adults are another portion of the demographic of indoor playground users. Many young adults use indoor playgrounds to locate and join a community of their peers. Some playgrounds are also starting to add gaming and virtual reality options, appealing to this older demographic.

How Do You Build an Indoor Playground?

The first step inĀ building an indoor playgroundĀ is to identify your niche. You can do so by looking up indoor playgrounds in your areaĀ to seeĀ what these locations are or arenā€™t doing.Ā Use thisĀ information to create aĀ uniqueĀ theme and structure for your own indoor playground. After some initial research, you can start planning and creating your ideal indoor playground.Ā Working with a knowledgeable playground designer can make the process easier.

Design an Indoor Play AreaĀ With Soft Play

If youā€™re considering opening an indoor playground,Ā consider partnering withĀ Soft Play. WithĀ decadesĀ of industry experience, we are a leader among indoor play area businesses and a reliable source for your playground needs. We offer both custom playscape design services and a selection of pre-made soft playground equipment.Ā See what we can do for you by looking throughĀ our list of case studies.

Browse ourĀ broad range of productsĀ today andĀ request a quoteĀ for a predesigned layout. If you’d like to know more about our custom services,Ā contact us to speakĀ with a local representative. We offer design consultations to help you get started with your project and bring your vision to life.

 

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