Tuesday, February 19, 2013

Chuck E. Cheese


I would assume that most of you have been to Chuck E. Cheese’s at at least one point in your life. It is currently the largest family entertainment chain in the United States. Some of you may have even been lucky enough, such as myself, to have had your own birthday there at one point. I remember it like it was yesterday, my sixth birthday at Chuck E. Cheese’s, with about ten of my closest friends, or just everyone in my class at school that year. Looking back, it was probably the perfect place for a young kid to have their birthday party. My parents were probably all for it because everything was set up when we got there, the party area, the pizza and soda, the cake, everything. Afterwards, they staff would even clean up everything for you. This is a perfect example of why Chuck E. Cheese’s is a very “attractive” opportunity for parents to host a kids party. Of course, it is more expensive to host such a party versus having one at the house, however, all my parents were really responsible for was booking the party, watching my sugar in-take and of course, making sure I didn’t fall on my head from running around so much. Aside from birthday parties, Chuck E. Cheese’s is just a great place to take kids over school vacation or on the weekends to let them burn some energy and have fun. Its enclosed and makes for a mostly-safe environment. Chuck E.Cheese's is an "attractive" opportunity for someone looking to become a franchisee because they offer an established model with attractive unit-level profitability.
                Chuck E. Cheese has been in the news only a handful of times within the past year. This past July, the franchise updated their mascot. As most of you probably know, the mascot has always been a mouse. However, now the mouse is thinner, carries a guitar and has more of a rock-star appearance. He even has a new singing voice. The main reason for the mascot makeover was to hopefully somewhat pull Chuck E. Cheese out of a sales slump.

                The franchise fee for Chuck E. Cheese is currently N/A. However, the total cost to open one is anywhere from $1,171,500 to $1,834,500 and it can initially be bought for no money down. The liquid capital required is $800,000. The Chuck E Cheese franchisor does not offer help with financing. However, they do offer training and support through their support center. At the support center, their main objective is “to support the individuals at our restaurants who provide great service and hospitality to our Guests.”
 

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