Surviving a Recession Part VI - 10 Tips to Manage Your Other Operating Expenses

There are many different expenses that come with running a family entertainment business. Parks and FECs have a long list of monthly bills to pay. But we tend to forget some of them while we're focusing on the more visible, the seemingly “more important” ones. The fact is, they are all important!?

?Don’t Forget About The Basics

Sometimes, we don't realize that all of the little things that go on behind the scenes can be extremely expensive when not monitored or controlled. Especially when your business is doing well for a long period and then suddenly you’re hit with an economic downturn. All of those bills that get paid without thinking about it can become a much bigger expense when there is not as much revenue coming in.

Here are a few examples of expenses that can easily go undetected in a money-saving strategy:

• Electricity
• Water
• Repairs
• Supplies
• Inventory

How Can You Save Money & Lower Your Bills?

Most owners forget the expenses that can move the needle.??

1. Lower electricity and gas bills by turning off lights when not necessary
2. Raising or lowering the thermostat for the AC / heating
3. Turn off the arcade during non-operational times as arcades draw a lot of power
4. Carefully monitor watering plants and grass. Setting timers to be shorter or on less frequent days can help a lot.??
5. Be sure that all plumbing is working properly so you aren’t wasting water or have toilets and sinks constantly running.??
6. Push off repairs that are not necessary until the sales turn around.??
7. Always do safety repairs to prevent any insurance claims.??
8. Buy only necessary supplies needed in the operation and make sure to use up all inventory first before ordering.??
9. Pay attention when buying food. Do not over-order perishables or you’ll have a high food waste amount. Food can spoil quickly if not used. By watching what gets thrown away (by kitchen staff & guests), you can decide if buying that product is even necessary or perhaps simply reducing the amount that is ordered will suffice. No matter how tough times get, never serve outdated food.
10. As far as inventories, use up what you have. You want to keep just enough necessary items on hand, you don’t want to be hoarding a bunch of stock in the back.? Keep redemption, food & beverages, and retail products stocked for the guest.??

Saving Money Takes the Sting Out Of The Recession

It’s time to get creative. Remember, being proactive is far better than reactive. If you integrate these savvy business tips now, you’ll be ahead of the curve. Don’t underestimate hard financial times, prepare for them!

There’s one more final tip that can end up saving you a noticeable amount of money monthly, quarterly, and yearly. Use direct shipping methods and companies like distributors, and even Amazon! This will help get products to you quickly and you won’t have to buy a shipping container full of products.? Think “small amounts” during a recession to hang on to your funds.? Prepare for the worst and hope for the best!?

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 ($55B 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 track to be a 250% increase 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 and YuKids - Family Entertainment & Amusement Parks, part of The Carlyle Group ($275B 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 IAAPA, CAPA, FAA, AAMA, NRA & WWA. 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.