Internet Gaming Cafe new business advice please

[Pevenseagull]

off the top of my head

£2 an hour, (just guessing but I wouldn't think people would pay more)

8 machines

£16 an hour revenue


average 75% occupancy during opening hours (probably optimistic)

£12 an hour revenue

staff salary for an enthusiastic IT literate wage slave £10 an hour

leaves £2 an hour to cover other operating costs and repay invested capital 8 top end machines, fixtures and fittings etc. etc. hmmmm


there are a few internet places along Western Road that have other income streams, e.g. student travel, phone and laptop repairs and sales, I've used them for A3 printing but never noticed any gaming parties going on. A couple of them have been going for a few years so I guess this kind of thing can be sustainable. That said there have been a couple doing similar things that have folded after a couple of months.

sorry if I sound like a grumpy old git, but I'm a grumpy old git.

 

[Randsta]

If you use is as a "front" I'm sure you will be fine

 

[maltaseagull]

Probably a case for an internet cafe in the 3rd world but in the UK? I would have thought everyone has wifi or smartphones now.

 

[otk]

A) If it is such a marvellous idea, how come bigger companies aren't putting their toe in the market?

B) If it is such a marvellous idea, how come a bank isn't stumping up the moolah?

Sounds a bit risky tbh

 

[Albumen]

Like launderettes, cafe gaming is only for those who can't afford to do it at home. And when I say can't afford, I mean they dont have much money (to spend in your cafe).

 

[kano]

People have been trying and failing to make gaming cafes work in brighton for a long long time. The country only has room for 2/3 good ones that host tournaments for the very dedicated gamers who will travel to them, this helps those few capture a small group of local casuals and everyone else just plays at home.

Sadly, their time is done now that low latency home connections are everywhere.

 

[otk]

People have been trying and failing to make gaming cafes work in brighton for a long long time. The country only has room for 2/3 good ones that host tournaments for the very dedicated gamers who will travel to them, this helps those few capture a small group of local casuals and everyone else just plays at home.

Sadly, their time is done now that low latency home connections are everywhere.

Who would go into an establishment with this sort of clientle

 

[gumbo43]

Crap idea, useless I'm afraid , all the kids play online against each other anyhow and generally would play at home, why bother going to a cafe to do that and wouldn't be able to charge much, all yud get is troublesome louts hanging about with know where else to go and you'd blow your dough in months. Sorry

 

[Matrix10]

Thanks everyone for your feedback, and I now think the idea is not viable.

 

[Stat Brother]

What we need is either American style sports bars.

I went in one with EVERYTHING and every sport catered for, from 1/2 a basketball court, to a 'pin ball' putting game.
Not to mention a gazillion TV's showing everything.

Or a European style sports cafe, same principle less frantic.


Going down the pub to watch the footie is so 1990's!

 

[Tyrone Biggums]

If your business was near a university it may have potential.

If however it's in a business district where there's not a lot of flow through traffic from the specific demographic he's targeting it will fail.

Does he have a business plan and has he conducted surveys in the area to determine interest?

 

[willyfantastic]

What we need is either American style sports bars.

I went in one with EVERYTHING and every sport catered for, from 1/2 a basketball court, to a 'pin ball' putting game.
Not to mention a gazillion TV's showing everything.

Or a European style sports cafe, same principle less frantic.


Going down the pub to watch the footie is so 1990's!

yeh have wanted to do this for ages - the uk just doesnt get sports bars right like they do in the usa and canada - which are amazing - i know if there was a decent one in brighton, i would go there, and only there, regardless of what we were meant to be doing

 

[mistahclarke]

You will be risking your capital, your business reputation and maybe your premises too, for his idea. What you have to ask yourself is, what is he risking?

This sadly.

If you get any sort of business I would imagine school kids. Might just be my London upbringing, but that brings trouble and little money.

I would be amazed if you even made the money back spent on the hardware and set-up.

 

[GingerBeerMan]

Thanks everyone for your feedback, and I now think the idea is not viable.

I definitely think it's not viable, because:

I don't like going 'out' to play games.
Most people who play PC games have a decent gaming PC already, the rest have a console.
Your overheads will be huge, a half decent gaming PC will be about £650 minimum, and you'd have to update them all regularly when new hardware comes out.

 

[The Wookiee]

Why didn't he go to the bank for the money ??

 

[GreersElbow]

I would not risk it, purely because many that have set up in Brighton in the past have gone under within a year. I cannot imagine it being profitable either, equilibrating the price will be tricky, as you will have a very varied set of expenses each month. It is also quite hard to gauge how much people are willing to spend an hour on a gaming pc. If you get the price wrong, then well, you're stuffed.

 

[Tricky Dicky]

Any advice on this would be much appreciated.

I have been approached by someone I know quite well with a business proposition, which will require me to put up the money for the venture. My prospective partner in this business is much younger than I and very knowledgeable in computer technology, of which field I am a generation or three behind. I have known him and his wife and young family for some time and believe honesty is not an issue.

The business plan he has presented to me is for an Internet Café with Gaming, initially with between 6 and 8 computers. I have an existing shop which could be easily split to accommodate and continue the existing business.

My question is has the Internet/Gaming café passed or passing its sell by date or is there still a market for this for younger people?

Thank you for your help.

It's definitely not something I would invest in, but if you already have the premises it could be ok, I guess - depends where the shop is of course. As an IT professional, it doesn't sound like a long term project, you would need top end tech, plus the ability to supprot the hardware and presumanly replace quite frequently, and upgrade with new generation tech.. Don't see the attraction of it mysef, but i've neve been into gaming - if I was, I think I'd rather be at home than somewhere else.

 

[Tricky Dicky]

... Plus, I don't think the sort of people these places might attract, would have much money to spend.

 

[Pevenseagull]

... Plus, I don't think the sort of people these places might attract, would have much money to spend.

on the plus side what money they did have wouldn't be spent on going out with girls

 

[gullshark]

Way past their sell by date in this country I'm afraid.

Years ago when our country wasn't well hooked up with broadband (think PC games played over modem) then they used to do alright as you generally had a decent internet connection at a cafe compared to one at home. Same reason why arcades are all full of gambling machines nowadays is that the same gaming experience can be had at home.

I used to play Quake a lot in my youth and would frequently go to london to a place called The Playing Fields to play in little caffeine, sugar and pizza fuelled events and that shut down aaaages ago as they simply weren't making any money.