Never Underestimate The Concept Of Value During Hard Economic Times

We are hearing more and more as the days go on about recession, inflation, and the economic downturn. Of course, every business feels the sting If the economy is not strong. You might be wondering how it can affect the family entertainment industry. Will your park or FEC be negatively impacted, or will it thrive??

When the economy is down like it is right now with inflation, the higher cost of living due to the minimum wage increase, as well as the recession, individuals and families start tightening their belts. They don't want to spend more than they need to survive. Businesses that do not provide a necessity will usually be considered a luxury when people decide what to spend their money on.

In addition, rising food prices are a concern for everyone. Not only for restaurants and family entertainment facilities such as parks and FECs but for everyone in general. People can't cut out food altogether obviously, but they can cut down on the money they spend at restaurants.

With all of these factors, we really have no choice but to raise prices in order to keep our businesses open. But, how do you do that without upsetting your customer base? How do we raise our prices and still make people want to come and enjoy our offerings? It's all about the perception of value.?

Believe it or not, covid has actually made a positive impact on this most recent economic downturn. Thankfully, most people are not ready to give up their leisure time or eating out just yet. Even though times are hard, and everybody is paying much more for everyday expenses, the majority of people are still not ready to be forced to give up the things that they enjoy. All of the forced shutdowns and making people stay in their homes, has given the population, for the most part, cabin fever. So, this is actually an advantage for us.?

Examples Of Value

The truth is, everybody is looking for a deal! If a customer sees a value, they are more likely to spend the money. Everyone has become a value shopper. By giving them a good reason to come into your park or FEC and spend money, you will be able to keep your family entertainment business alive.?

However, you can't run the basic value promotions that you've done for so long. It will most likely not be strong enough to entice guests to come in and spend money. You want something new! It's time to get creative! Your leadership team should be developing new concepts for creating value. The value that you put forward for your guests should never hurt your business. Remember, this is a way to make more money not less money. Here are a few examples:

• Don’t give an all-day pass. Instead, lower the cost for only 2-3 hours of fun at your park.??
• Giveaways are hot! Put on a contest- it’s great publicity! Give away a few tickets to events and parties on social media and on your website.??
• Change your SEO strategy by searching for new keywords on Google to pick up more people searching for fun and attractions.??
• Extend your park’s radius to pick up more people from farther away who will be searching for your promotions.??
• You can also decide to give back and pay it forward to veterans, first responders and teachers! This is a huge promotion not only to your community but the nation, as we stand behind these individuals. You can sweeten the pot and go one step further by offering their families a discount to add more people coming through your doors!?

Running special discounts is also a good marketing opportunity. Try to drive traffic to your business whenever you have a special deal for people. Whenever you run a promotional package or special deal, you want to make sure that you promote them effectively! Never miss an opportunity to upsell! People are not just going to hand over the hard-earned money that they desperately want to save. You have to make them believe that it is worth it to spend at your facility.?

Have you read an article I’ve published here on LinkedIn and want to talk about the topic a little more? If you’d like to book a call with me regarding the Family Entertainment Industry or Private Equity, please feel free. I enjoy connecting & collaborating with others in the same professional space.

Tim Murphy is CEO of APX Operating Company, dba Boomers Parks, under the ownership of Cerberus private equity ($60B assets). Boomers Parks owns six family entertainment centers and two water parks with locations in California, Florida, and New Jersey.

As CEO of Boomers Parks since 2020, Tim took these eight parks from bankruptcy to profitability in just a year – in the middle of a global pandemic. When Boomers acquired these parks, they were operating at a $10 million loss. Tim transformed the customer experience and added new revenue streams to generate a 180% increase in revenue in 2021 and on a similar trajectory in 2022.

Tim launched his 35+ year career at Walt Disney World and has since served more than 150 entertainment, restaurant, and food & beverage brands across more than 10,000 locations in C-suite and senior positions.

Additionally, Tim is a Board Director with Coney Park & Happy City - Family Entertainment & Amusement Parks, part of The Carlyle Group ($276B assets), a private equity firm that operates 150+ family entertainment centers and amusement parks in Latin America.?

Tim has worked with top-tier entertainment and restaurant brands including Disney, Rebounderz Trampoline Parks, Darden Restaurants (Olive Garden, Bahama Breeze, etc.), Red Lobster, Jimmy John’s, Applebee’s, Sonny’s Bar-B-Q, Denny’s, El Pollo Loco, Hardee’s, Golden Corral, and Firehouse Subs.

Tim has overseen more than 35 purchase transactions involving over 1,200 restaurants, stores, and park locations.? With extensive experience in buying and selling businesses, handling negotiations with buyers and sellers, and creating strategic partnerships to build strong brands, Tim has facilitated deals ranging from $11 million to $350 million+.

Tim is a member of International Association of Amusement Parks & Attractions (IAAPA), California Attractions and Parks Association (CAPA), Florida Attractions Association (FAA), American Amusement Machine Association (AAMA), National Restaurant Association (NRA), California Restaurant Association (CRA), World Waterpark Association (WWA) and International Franchising Association (IFA). He is a licensed commercial real estate broker in the State of Florida. Tim earned a BS/BA in Accounting from the University of Central Florida and an MBA in Finance from Orlando College.