Internet Cafe's/Games Rooms

[Jason_Fisher]

Is there much demand for this type of venture in a town centre?

The reason i ask is because our town centre is always full of people just wandering round with nothing to do, whether it be during the day or after work. We have a library with 3 computers which are old and very slow for people to use for free, but when i say slow, i mean extremely slow!

My friend is currently closing his business as there is not much demand for what he sells now, as his prices have gone up at the wholesalers, and he cannot compete. He still has 8 months left on his lease and wants to carry on at that site but in a different industry.

I was thinking of suggesting this to him but wanted to get more info first. I was thinking MAC computers with a fast internet connection, games consoles, plasma tv's, cafe, sky sports all rolled into one.

Do you think something like this could potentially work and if so, how much could be charged for usage etc.

Bear in mind he only has 1 part time member of staff, and he only earns a takehome salary which provides him a comfortable lifestyle, nothing flash.

Ideas and add-ons to the idea all welcome.

 

[Jim2k]

It sounds like your are suggesting a combination of internet cafe and lan gaming neither of which took off particularly well in the UK and certainly not now when everyone has a PC/Games console at home and internet on their phone.

I could see it maybe working if you made it a hangout for the yoof but I don't think you could charge much - although mark up on drinks etc could help.

 

[seanheather]

It could work, however the days of 'LAN' stores are over as you'd struggle to get people to pay over a pound to come in and play.

If you had a store with games consoles and an array of LCD 50" TV's then I think it would work. Maybe charge £5 for 2 hours and have a capacity of say 20 people. So you'd need 20 PS3's, 20 XBOX 360's and 20 TV's, and also 20 headsets for each console, so 40 in total. Not to mention each game (obviously not all of them) x 20.

Logistically it could be a problem as the space needed for sofas would be a lot, and no one would want to sit on an uncomfortable chair.

I think this would only work if the set up was so top end and quality you'd almost be drawn in.

I think though that the set up cost would hinder you getting a profitable return within year 1.

 

[Jason_Fisher]

I know most homes now have internet, computers and games consoles, even in these hard times. I was thinking of something more higher end, such as what you have mentioned (50" LCD, games consoles, Mac's) charge say £5 an hour.

Even if i didn't charge, the idea would be to have a cafe linked in to make the money. Mark-up on food and drink is so high. Games, tv's, computers etc to get people in and food and drink to make the money.

There would be many ways to make some extra money, such as tournaments etc, game rental? Could even charge a membership like rileys pool/snooker do?

I have a games console at home, with a large tv etc, but some people have smaller tv's and maybe interested in the experience of larger/better gaming.

 

[Jason_Fisher]

Does anyone have any other ideas as to how to make something like this pay?

I agree it would be hard nowadays to get people to part with money to use the computer, even though it would be a top of the range computer with fast connection.

 

[Jim2k]

I agree it would be hard nowadays to get people to part with money to use the computer, even though it would be a top of the range computer with fast connection.

I don't really understand why someone would pay a premium at an internet cafe for a super fast connection. They won't be downloading etc so why the need for a super fast connection?

 

[Jason_Fisher]

Well whenever i have gone to use a computer that isn't my own, such as the library, i try and load a page and it takes an age, so if i have allot to do it is frustrating when the computer goes slow. I know it is the computer too, but a good connection is good too.

 

[Newcott]

Ok I'm a avid gamer and used a few in the past.

The trouble is now you have xBox Live & the PSN. LAN parties have died out. Why wonder into town when I've got my Halo Reach sitting less then 3 feet away from me.

The benefit is the social side but I can't see how you would make enough money to cover costs. Ontop of the equipment you'll know doubt need to protect & insure them.

Tourniments could work - I know you mentioned about FIFA before but there's not enought life in this for having a continueous premisis/assets

 

[Esk247]

Doesn't work Jason. Youths in the UK aren't that social and the whole thing just doesn't work.

It's been done to death. Game tournaments are run a few times a year in the UK by big games companies, they don't do it permanently because it loses interest.

People prefer playing games at home, most have an LCD wide screen telly on the wall these days.

 

[obscure]

The reason i ask is because our town centre is always full of people just wandering round with nothing to do, whether it be during the day or after work.

I think the reason they are wandering around is more to do with not having the money to do anything, rather than not having anything to do.

In addition to the cost mentioned above you also have to pay a special license fee to the developer/publisher for internet cafe use. Rental/public performance is prohibited under copyright unless you have such a license.

Other issues - food and computers don't mix. People playing are a bit too busy to eat and people eating while playing are likely to mess up the kit pretty quickly.

It might work if there was a large Korean community in the town. They are mad for internet cafe gaming. It is very common in Korea for kids to go out to gaming centres with their friends, instead of going to each others houses. Pretty sure New Malden has the largest number of internet cafes per head of population in the UK, due to the large Korean community.

Cheap Skype calls - most of the internet cafes I have seen are filled with overseas students/workers who are using MSN or Skype for cheap chat to the family back home. Great if you have a university in town but probably not the high end punters you are thinking of. They are after cheap computer use.

 

[seanheather]

Does anyone have any other ideas as to how to make something like this pay?

I agree it would be hard nowadays to get people to part with money to use the computer, even though it would be a top of the range computer with fast connection.

Hmm..Okay lets weigh in the start up cost purely for the equpment.

20 Ps3's: £4800
20 Xbox 360: £2600
40 Headsets: £400
20 TV's: £16000
10 27" iMac's: £14,000

So just for the equipment alone you're looking at about £38,000

To make that back you need to have at least 20 people per day for a whole 12 months paying £5.

This is of course not including your lease on the store, sofas, and other expenses.

To make a profit you would probably have to have in the region of 50 + people per day using your services. This would get you around £84,000 per year and your outgoings would probably be 3/4's if not more than that in your first year.

This is of course based on a best care scenario which we all know, never happens, or hardly ever happens.

= )

 

[thetime22]

Do not make a internet/games room until you visit Korea and see how they do it. I lived there for a year and was blown away.

 

[UFOnaut]

Such business will have customers everywhere. People like to have fun. If you give a home comfort for your clients then they will give you a very good income.

 

[Jason_Fisher]

How about throwing a 3D tv in the mix too and have a movie night once a week. I know these tv's will go down in price but for now not everyone can afford one. If people can afford one, atleast they could experience it first?

 

[Esk247]

How about throwing a 3D tv in the mix too and have a movie night once a week. I know these tv's will go down in price but for now not everyone can afford one. If people can afford one, atleast they could experience it first?

movie nights flop.

how do i know? i used to help advertise them for amature uk film makers.

there just isn't a draw for it i'm afraid. people go to the cinema if they want to watch a film on a big screen.

 

[Jason_Fisher]

Even thought the cinema is nearly £10? I was thinking of a yearly or monthly membership for this venue. People can obviously pay each time, but if they are regular users would be better to pay a membership. Also i would try and get local businesses involved, so that all my members could receive discounts/special offers from the other businesses.

 

[Jason_Fisher]

Could even have 3D football on a saturday? Try and get a license.

Just a reminder, i am just trying to get as much info for a friend as i can before i suggest it. Don't want to suggest a flop to him

 

[Esk247]

3d Football and rugby might be a better option. If timed with the internationals and euros.

 

[Jason_Fisher]

So maybe a sports cafe in the centre of town might be a better idea, could maybe have a couple of games consoles as a side, but not the main focus?

Could focus on all the sports games, and like you say, internationals. With the olympics next year too, could be a venue to watch them, if he gets a good reputation now?

 

[devilmaycry]

Could even have 3D football on a saturday? Try and get a license.

Just a reminder, i am just trying to get as much info for a friend as i can before i suggest it. Don't want to suggest a flop to him

- Pubs are now showing 3D football matches. And the licenses are astronomical.

- Cinemas show 3D films.

- And too many people have PS3's and Xbox's at home.

I really think this is a non-starter. Especially when such a large captial outlay would be needed. I can't see how you would make money.

You'll be suggesting a flop to your 'friend' however you spin it...

 

[devilmaycry]

So maybe a sports cafe in the centre of town might be a better idea, could maybe have a couple of games consoles as a side, but not the main focus?

Could focus on all the sports games, and like you say, internationals. With the olympics next year too, could be a venue to watch them, if he gets a good reputation now?

You're describing a pub...

 

[seanheather]

You're describing a pub...

yup. Like the sports bar in birmingham. Great place.

We need more places like this.

 

[Mitchellway]

Ive watched LAN centers over the years fall one by one, and it really sucked.
even though i had a far superior pc to the ones the LAN centers had it was a place to go with the fellas and have a laugh, i know lan centers died out due to the majority getting their own rigs or consols etc. but i beleive if you find a niche in the market to attract a new crowed in addition to the food/drink/gaming/events you would be laughing, like earlier comments suggest, have a look at what the asians are doing with their gaming centers. it would be nice to see a new wave of local gaming centers open up again.

 

[I Love Spreadsheets]

I think a good niche would be to attract players from offices rather than youth.

When I worked at Admiral Insurance we had regular matches over our local LAN place. We stuck out like saw thumbs because we would go straight from work in shirt and ties and our average age was the wrong side of 30.

I have seen a few places use games like Call of Duty as team building tools (that was their excuse for playing it in work time anyway).

 

[nexez]

I don't think lan will work nowadays, even here in central London there is a lan cafe called gamerbase and that still struggles to get business.

However the internet cafes are always packed around London, think its because of tourists around the area. So i think you should really consider the location you're in before you venture out.