WHY SUPER RAD?
Because we think this space and this location could provide an amazing experience to college students and the local populace with a new, fun and exciting concept.
You may be wondering, why would we pick a dude to open Super Rad when we could just get a chain or sports bar to do their thing?
Well, let me tell ya.
I will try to keep this short, but I wanted to explain a bit about me, my background, my model, and how I got to wanting to open an arcade bar.
First, I am a strength and conditioning coach turned entrepreneur. I have a masters degree in exercise science, I have trained people and athletes at every level of sports, I own 2 successful and profitable gyms, the absolute hardest industry to stand out in and stay open – using a business pivot and clever marketing we actually grew during COVID. During the process of opening and running my gyms for the last 6 years, I have learned a lot about business. In fact, my specialty in business is building consumer facing products with a strong brand and excellent consumer experience.
My gyms in Raleigh
I bought my first arcade in 2019, but my experience tinkering with games runs back to childhood when I attempted (and failed) to make a portable sega genesis. I have loved gaming since.
You may be wondering, why would we pick a dude to open Super Rad when we could just get a chain or sports bar to do their thing?
Well, let me tell ya.
I bought my first arcade in 2019, but my experience tinkering with games runs back to childhood when I attempted (and failed) to make a portable sega genesis. I have loved gaming since.
Just weeks after I bought my first arcade, I knew one day I would open a bar and arcade. I even booked the facebook page Super Rad Games in 2019. I have been a weekly customer of Boxcar for the last 4 years, as I routinely take my daughter, and also play competitive air hockey (I am ranked #9 in the state) – and Raleigh just so happens to be the fastest growing city in the country for air hockey.
In addition, I know the local competitive pinball crowd (which routinely has 25-40 people at their tournaments), and play with them on occasion.
In the last 4 years I have gone to over 40 bar and arcades across the country – Nashville, Las Vegas, Florida, Dallas and Houston, Charlotte, and more. I have done this because I love going to them, but also to find what ideas I like that work, don’t work for us, and to just watch people – to see how they interact with the menu, the games, the drinks, to see whos there and what vibe is conducive to what market.
In that time I have been buying and restoring games – a lot of them. At present count I have 53 arcade games and 10 pinballs. I have made connections with repair people for every type of game – Atari takes a different person than Sega, and Nintendo is different the Bally/Midway.
Just some of my games.
In fact, I even have a standardized checklist for the games I repair to ensure they are top quality. This isn’t just throwing games in a place, Super Rad games will go through an extensive restoration process prior to being seen by the public. While most arcades just get a working game and dump it in their barcade, a trademark of super rad is going to be games that look and feel new. We will place an emphasis on quality, experience and being a place ANYONE wants to hang out.
We even have artwork made for custom multicades that we want to sell – and two playable examples that are almost done.
The business model & Math
The first thing I want to ask – why have so many restaurants failed at 2420, and why does not that scare me?
Simple, the economics of the location and the immediate surrounding audience don’t match.
Lets assume rent of $15,000 per month – how can a restaurant pay their bills? They either need a high check total for large margins, or repeat customers.
The first option is simply not possible – college kids don’t have the cash to support large checks, and people who do have that money available are not going to go to a place on a college campus when they have a plethora of alternatives all over the city. The second option is simply impossible as well – due to the number of available alternatives.
Don’t believe me? Check out the immediate 2 blocks surrounding the location:
To cover $15,000 rent, $1500 insurance, payroll of $10,000 per month and food costs at a 70% margin – assuming NO OTHER EXPENSES including taxes or utilities – a restaurant has to do $37,857 a month to break even.
Add in 7% tax and a $10,000 profit to the owner?
The restaurant has to generate $72,153 in gross revenue a month, or $2405 per day, to generate $10,000 net profit to owner a month.
As you can imagine, thats not easy on a college campus with not very accessible parking.
However, Super Rad Bar and Arcade has a secret weapon – one that makes us unique to the local population (but has proven VERY successful in other markets – more on that later), improves the customer experience and comes at 100% margin – our entry fee model.
At an $8 entry and a $16 average ticket price – we break even with 50 people per day – not even including food.
Our model takes the existing space, the local clientele, the economics of the bar and aligns all of them into a successful, profitable and fun solution.
We provide a fun entertainment option for NC State Students- in fact one of the only ones near Campus.
The students get a place to go thats walking distance.
Parents and kids (who largely attend mid day) will have the place open and available to them as college kids don’t go til evening.
You get a long lasting tenant that will become a staple on Hillsborough St.
Do people even go to arcades?
Short answer, yes – absolutely.
They are a draw to students who want entertainment (completely ignoring that retro is in), parents who want their kids to experience what they experienced, an amazing attraction for first and second dates, and overall just provide the fun time that people want to have with their friends. Boxcar in Raleigh routinely has 200+ people there at any given time on friday and Saturday nights. They have weekend revenues exceeding $50,000 at each location.
Given that most cities have 3-5 bar and arcades, it makes sense why people congregate there – but also creates a market opportunity for something fresh and unique.
Not to mention corporate outings, birthdays, events and more.
Similar models around the country
In fact, one of my favorite bar and arcades in the country – and a role model for the type of business I want to run – has open 5 locations in 6 years – Free Play in Texas.
Their model? Immaculate restored games, entrance fee, maximize fun and use the entrance fee to promote events and attendance. They even have a membership model we will be adopting – one where people can pay monthly and come as much as they want.
In addition, here are just a few of the many more entry fee arcades:
- Basement Bar in Concord, NC
- Player 1 Arcade Bar – Vegas, Orlando, and more.
- Headquarters Arcade Bar – Nashville
- Stop Button -Fayetteville
- Cidercade – Houston / Dallas
- Draftcade – Richmond, Toledo, Kansas
- Pinkys Revenge – Spartanburg
They all have various themes, but one commonality – they are all successful and most have multiple locations. I have already begun the process to make our own version with a modern 90s theme.
Yes, Super Rad will be a bar with Monthly recurring revenue.
What about competitive gaming?
This isn’t just a bar for casual observers. We will be the *ONLY* bar within 100 miles that has a collection of 90s and 2000s pinball games, and the only bar within 500 miles that has 3 air hockey tables rated for competitive play.
These competitive people may not be the majority of your revenue, but they provide consistent, high quality patrons that return regularly – and gives us a venue to hold events weekly, monthly and yearly around these competitions.
Not bad, eh?
Busy both day and night
Modern day bar and arcades are not just dark dingy rooms with old guys playing donkey kong in the corner.
They are fun, open, clean and a place for people to congregate with entertainment.
They are a place families have birthday parties, offices have corporate events, parents bring their kids, and 20s and 30s go on dates at.
Now, a lot of this is a bit foreign to the Raleigh market, we have breweries and sports bars galore but no fun, clean and open bar and arcades (Boxcar Durham is as close as it gets to that concept).
During the day on the weekends, families will bring their kids to experience the fun of arcades without worrying about tokens or wasting money on a game they don’t like.
At night, when we go 21+, when the college students, friends and single folk of the Triangle hit the streets, the place will get a bit darker, music more “college vibed” yet still 90s themed, but our core philosophy won’t change. The beauty of a bar and arcade, especially a new one in Raleigh, is we will be busy day and night serving two different markets at two different times – all in the same place, with the same economics driving the business.
At 2420, we will even have dedicated spaces available for rent upstairs for events, parties, birthdays and more.
Food?
Yes, we will have food and utilize the kitchen. We will create a menu of handheld carry-able foods that our customers can walk around the bar and arcade with, foods that parents can get their kids on the weekend and sit down and eat in between games. We will also utilize the kitchen to promote special events such as sunday arcade brunch menus. Food will not be a primary or necessary source of revenue for Super Rad – but it will be utilized to increase customer length of stay, ticket size, and overall happiness.
We feel strongly that serving the local market for who they are – and not who we want them to be – is vital to long term success.
The clients that will be at our facility every night do not have high bank account balances – they are students. We can best serve them by giving them good food and drinks at a cost they can afford and encourage repeat customers and more frequent tickets. Our food will support this model.
Conclusion
If the goal is to build something awesome for students, something unique for Raleigh, and something that makes sense as a business, Super Rad is the answer. If the goal is to give families a fun place to go during the day and enjoy a trip to the past in a modern industrial setting, Super Rad is the answer. If the goal is to be the start of a new brand that has plans to expand not just into more locations, but into becoming a dedicated brewery and grow into more brand opportunities, we are it.
And, betting on me is always the right thing. I have dedicated over $100,000 in the last 3 years to my arcade restorations, and thousands of hours of work and research on restoring them and leaning about them. The risk is not going with an unknown, the risk is going with someone who lacks dedication. And as Alexander Hamilton said…
