This interview explores the experiences of Eric Gardner, an arcade route operator, as he tackles the realities of a shifting economy. Learn how he continues to grow the business by focusing on efficient equipment choices and reliable locations.
Q: How has the last few years impacted arcade operators, and what strategies have helped you maintain success?
A: The last few years have been tough for many operators. I’ve spoken with several friends in the industry, and most have seen their business drop anywhere from 10% to 25%. That’s a significant hit, but I think a big part of staying successful is reinvesting in new equipment. While others are holding back, we’re putting in affordable machines that offer great ROI, like claw machines. For instance, a $5,000 claw machine can outperform a $20,000 shooting game in many cases. It’s all about understanding what works for your market.
Q: How do you use an economic downturn to your advantage?
A: One strategy is looking at where other operators are inefficient. Some businesses don’t reinvest in equipment, even with solid ROI. That’s an opportunity. Also, during downturns, we focus on stable businesses. For example, bars and local entertainment spots tend to do well, as people are more likely to stay local rather than take expensive trips. We cater to these locations by placing our best-performing machines there.
Q: What’s your approach to choosing equipment during tough times?
A: The key is to focus on what works now. While some operators spend big on flashy, high-priced games, you can get the same, if not better, returns by investing in more affordable options like claw machines or simple prize games. These machines keep people coming back because they win more often, which boosts customer loyalty. It’s not just about the cost—it’s about creating a fun experience that drives repeat business.
Q: Can you share any insights from past downturns, like the 2008 crash?
A: During any downturn, the goal is to align with businesses that will survive. You don’t want to be the reason why they stay open, but you can be a supplement to their revenue. Pizza shops and local hangouts are usually safe bets. They require a smaller investment in equipment, but the returns are solid, especially when bigger entertainment options aren’t accessible to most people.
Q: Any final thoughts on surviving in the arcade business during uncertain times?
A: It’s about being smart and not following the crowd. Everyone wants to get into this business, thinking it’s easy, but they don’t consider all the costs—trucks, insurance, maintenance, etc. Keep things simple, invest wisely, and always focus on locations that thrive even when the economy struggles.
The main message is clear: thriving in today’s market means making smart investments, choosing high-return machines like claw games, and placing them in steady, reliable locations—think local bars, entertainment venues, and pizza shops. By spotting inefficiencies and leaning into what works, operators can turn challenges into growth opportunities. Amuze is here to help you do the same, let’s boost your revenue, starting today.
