Close Menu
  • CURRENT ISSUE
    • Cover Story
    • Profiles – Companies, Products & People
    • Spotlight Feature
    • VR Spotlight
    • Favorites & Special Reports
    • Bob Cooney Special Reports
    • Editorial
    • Datebook
    • Columns
      • Q&A with AMOA
      • Q&A with AAMA
      • NOW TRENDING by Howard McAuliffe & Nick DiMatteo
      • George McAuliffe’s GAMEROOM GURU
      • Adam Pratt’s ENDGAME
      • Jack Guarnieri’s JERSEY JACK
      • Beth Standlee’s PARTY PROFESSOR
      • Clint Novak’s PRIZE PATROL
      • FUN ACROSS AMERICA
      • Frank Seninsky’s FRANK TALK
      • Tom Fricke’s REDEMPTION & THE LAW
      • Randy White GUEST ESSAY
  • INSTANT REPLAY
  • PODCASTS & VIDEOS
    • The RePlay Podcast
    • Machines, Myths & Legends
    • Older Audio/Video Archive
  • GET REPLAY
    • Subscriptions
    • Sample Copies
    • Order Back Issues
    • Index
  • ABOUT
    • About RePlay Magazine
    • Meet the Team
    • Cookie Policy
  • LINKS
  • CONTACT
Facebook X (Twitter) Instagram
Trending
  • National Darts Day This Sunday, June 29
  • IAAPA Expo Asia Coming Next Week
  • Killer Queen Relaunched Featuring New Mode
  • Philadelphia’s Mini-Golf Pop-Up is Back Soon
  • TEEG Appoints New Play ‘N’ Learn COO
  • Nearly $80K Raised, Benefiting Sunrise Association
  • Creative Works Unveils New Mini-Golf Product
  • Zero Latency Celebrates 10 Years, 5 Million Plays
X (Twitter) Facebook RSS Instagram YouTube
RePlay Magazine
  • CURRENT ISSUE
    • Cover Story
    • Profiles – Companies, Products & People
    • Spotlight Feature
    • VR Spotlight
    • Favorites & Special Reports
    • Bob Cooney Special Reports
    • Editorial
    • Datebook
    • Columns
      • Q&A with AMOA
      • Q&A with AAMA
      • NOW TRENDING by Howard McAuliffe & Nick DiMatteo
      • George McAuliffe’s GAMEROOM GURU
      • Adam Pratt’s ENDGAME
      • Jack Guarnieri’s JERSEY JACK
      • Beth Standlee’s PARTY PROFESSOR
      • Clint Novak’s PRIZE PATROL
      • FUN ACROSS AMERICA
      • Frank Seninsky’s FRANK TALK
      • Tom Fricke’s REDEMPTION & THE LAW
      • Randy White GUEST ESSAY
  • INSTANT REPLAY
  • PODCASTS & VIDEOS
    • The RePlay Podcast
    • Machines, Myths & Legends
    • Older Audio/Video Archive
  • GET REPLAY
    • Subscriptions
    • Sample Copies
    • Order Back Issues
    • Index
  • ABOUT
    • About RePlay Magazine
    • Meet the Team
    • Cookie Policy
  • LINKS
  • CONTACT
RePlay Magazine
You are at:Home»Current Issue»COLUMNS»Gameroom Guru – March 2017
The Rose City Bowl in New Castle, Indiana (not an example of a turnaround location as discussed in this month’s column) is a project recently completed by Pinnacle Entertainment Group. George writes that operational excellence is always a priority at this gorgeous location. (Photo courtesy of The Rose City Bowl.)

Gameroom Guru – March 2017

0
By RePlay Editor on March 1, 2017 COLUMNS, Current Issue, George McAuliffe's GAMEROOM GURU

Another Year Flies By

A Look Back at 2016 and Ahead at 2017

By George McAuliffe, Chief FEC Strategist, Redemption Plus

George McAuliffe
George McAuliffe

 

Years ago, the manufacturers in our industry –– then mostly video game makers since video was 90% of the equipment mix –– struggled for creativity to keep up the unbelievable streak of great games released. They couldn’t. Eventually, creativity gave way to imitation. In one conversation, as a manufacturer was showing me their new game, I think it was Crash, I noted that, aside from some color changes, it was identical to another hit of the time: Head On. I said something to the effect that “it’s just a knockoff of Head On.” “Well,” he said, “it may be remarkably similar.”

Dedicated RePlay readers may have noticed that another columnist has a last name “remarkably similar” to mine. That’s Howard McAuliffe, my son and business partner, who writes the Now Trending column in these pages. In the February, 2017 RePlay his headline was “How Long Will This Last?” Subtitle: “Looking at the Booming FEC Market’s Potential and Threats.”

It’s an interesting subject. The question arises as the family entertainment center industry is enjoying great dynamics. Growth is at hand as family entertainment attractions –– especially games –– are successfully introduced to complement other established businesses: bowling centers, family restaurants (especially pizza), cinemas and hotels as examples. There is no shortage of great games being released and the playing public loves them. Debit card systems allow us to regulate the cost of the experience and obtain pricing that allows profitability.

Redemption is ascendant, games have long lives, merchandise practices are staying ahead of the curve. So, it’s pretty much all good.

As Howard points out, though, as arcades expand into all of these different venues, two things generally happen: the novelty can wear thin, and there can be less urgency to play since they can be found in more places (maybe that’s the same thing!). He also touches on the macro economic environment: from politics to gas prices, our businesses are affected by events out of our control.

Howard concluded his article by sharing an “Aha!” moment he experienced when a friend explained how his business was thriving at the depths of the great recession. He realized that opportunities are there for those who find them at all stages of a business cycle. That has been my experience as well. Another observation is that the great operators –– those who are “operationally excellent” –– build their strength in good times. If downturns come, they survive on that strength. If they don’t come they are maximizing their business anyway!

Our consulting practice puts us in game rooms all over the country (and world) pretty much every week of the year. We are constantly talking to business owners with game rooms, our clients and others, about operations. We provide and teach a system of organizing all of the details in order to efficiently manage the guest experience, maximize sales, and control costs. As you might imagine, some of our clients buy in and follow the system, others don’t.

One of my “Aha!” moments in the business came when I realized the central economic truth of the game room: The last dollar you collect is the most profitable dollar you collect. (That’s why the best operators drive the nicest cars!) This means that attention to detail more than pays for itself.

 

Keeping it straight –– With 200+SKUs in even a small redemption presentation, a system is critical, says McAuliffe. (Photo courtesy of The Rose City Bowl).

This was recently brought home by our work with a long-time client whose general manager, who was well versed in the central bowling business, had no inclination to truly manage the arcade. Over time, our system fell by the wayside and (surprise, surprise!) arcade sales gradually declined. The owner finally had enough and called for help.

We analyzed the owner’s Embed reports in advance and diagnosed some problems. A site visit confirmed our suspicions and yielded many more opportunities for improvement. Essentially the entire system of operational management we had installed had fallen into disuse and disrepair. They had stopped paying attention to the detail of their player/guest experience.

A fully “tuned up” game selection allows you to collect that last, most profitable dollar, says George.

With a little elbow grease and revisit to the operational manual (and a new general manager), order was restored. The result? Arcade sales gradually increased, peaking at a 71% increase six months after the system reset. Not that we needed to prove it to ourselves, we’ve seen similar turnarounds many times over the years, but it certainly shows how attention to detail pays.

While none of us can predict the future, we can control the present. Barring a politically induced shock to the economy, I happen to think we’re in good shape for continued growth. But let’s not be complacent. There is no downside in fine tuning our operations, maintaining best practices, and striving to delight our players, even in the best of times!


George McAuliffe has created and operated family entertainment centers from 2,000 to 150,000 square feet as a corporate executive, entrepreneur and consultant. He’s President of Pinnacle Entertain­ment Group and leads the company’s strategic advisory team. George, recently moved back “home” to the Jersey Shore with his wife Julie, has a passion for passing along what he’s learned in the fun business to the new generation of operators and suppliers.

Readers can visit  grouppinnacle.com for more information or  contact George at georgemc@group
pinnacle.com; phone: 314-422-7197.

Gameroom Guru George McAuliffe Pinnacle Entertainment Group
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleQ&A with AAMA – March 2017
Next Article Frank Talk – March 2017

Related Posts

Party Professor – June 2025

Fun Across America – Big Stone Miniature Golf and Putt Nation

Now Trending by Howard McAuliffe – June 2025

Leave A Reply Cancel Reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.







RePlay Logo

RePlay Magazine is a monthly trade publication covering the game center and route business. Since 1975, RePlay has been reporting on the equipment, people and trends that have made "coin-op" a fun and exciting business.

Get the FREE Instant RePlay Newsletter

Sign up and receive newsletters to keep you in the know.


© 2025 RePlay Magazine - All rights reserved. For permission to reproduce content, email [email protected].
  • About
  • Privacy
  • Contact

Type above and press Enter to search. Press Esc to cancel.