Operating an arcade requires compliance with a mix of general business rules and industry-specific requirements tied to public-facing entertainment venues, coin/card-operated devices, and (often) food, beverage, and prize redemption activities. This section should document the licenses, permits, standards, and internal controls needed to open and run the arcade without interruption.

Business formation and core registrations
Register the legal entity (LLC/corporation/partnership) and obtain a tax ID.
Register for state/local sales tax collection (most arcade admissions, gameplay, and merchandise are taxable; confirm local rules).
Obtain a local business license and ensure the business name (DBA) is filed if operating under a trade name.

Zoning, land use, and occupancy approvals
Confirm the location is zoned for “amusement,” “arcade,” “family entertainment center,” or similar use; obtain zoning clearance or a special/conditional use permit if required.
Secure a certificate of occupancy after build-out and inspections; ensure the planned occupant load, layout, and egress meet code.
If the site is in a mixed-use center or near schools/residential areas, check for location restrictions (hours, noise, loitering controls, age limits) that can apply to arcades in some municipalities.

Building, fire, and life-safety compliance
Ensure compliance with building codes for exits, corridor widths, emergency lighting, signage, and posted occupant load.
Coordinate fire inspections for alarms, sprinklers (if applicable), extinguishers, and clear egress paths; maintain inspection records and service contracts.
If using special attractions (e.g., VR rooms, laser tag, small rides), confirm whether additional life-safety features, room ratings, or supervision requirements apply.

Amusement device, arcade, and redemption licensing
Identify whether the city/county/state requires permits or taxes for coin-operated amusement devices, pinball, and video games; track devices by serial number as required.
If offering redemption/prize games, confirm rules governing skill vs. chance, prize value caps, required signage, and recordkeeping for prize prevention of “illegal gambling” characterization.
If a third party supplies games under a revenue-share arrangement, document who holds the device licenses and who is responsible for compliance, maintenance, and taxes.

Gambling and sweepstakes risk controls
Avoid features that could be interpreted as gambling (considerations include pay-to-play with chance-based outcomes, cash payouts, or transferable winnings).
For any promotions, sweepstakes, or tournaments, document official rules, eligibility, “no purchase necessary” mechanics where required, and prize fulfillment processes.

Consumer protection, pricing, and disclosures
Post clear pricing for credits/cards, game costs, admission (if charged), refund policies, expiration rules for stored value, and any fees for replacement cards.
Comply with gift card/stored value laws (escheat/unclaimed property rules, expiration limitations, and required disclosures vary by jurisdiction).
Use transparent signage for age policies, supervision requirements, prohibited conduct, and photography/recording policies if applicable.

Health department and food/beverage permits (if applicable)
If selling prepared food or beverages, obtain food service permits and pass health inspections; implement temperature control, sanitation, and allergen handling procedures.
If serving alcohol, obtain liquor licensing and comply with age verification, responsible service training, hours of service, and dram shop/liability requirements.
If only selling packaged snacks/drinks, confirm whether a limited permit or basic retail registration is still required.

Accessibility (ADA and local equivalents)
Provide accessible routes, entrances, restrooms, service counters, and seating as required.
Ensure game floor layout allows wheelchair access and maneuvering space; plan for a practical level of accessible game experiences where feasible.
Maintain policies for service animals and reasonable accommodations; train staff accordingly.

Safety standards and equipment maintenance
Implement an inspection and preventive maintenance program for all machines, especially moving equipment, VR setups, and any ride-like devices.
Document lockout/tagout and electrical safety practices for staff and vendors servicing equipment.
Maintain incident reporting procedures, first-aid readiness, and clear protocols for power loss or emergency evacuation.

Data privacy and payment compliance
If using arcade cards/app accounts, loyalty programs, or Wi-Fi, address collection and storage of personal data; publish a privacy policy and comply with applicable privacy laws (especially for minors).
If processing card payments, comply with PCI DSS and limit access to payment systems; use reputable POS providers and secure network segmentation.
For CCTV, post notices where required and define retention periods and access controls.

Employment law and workplace compliance
Comply with wage and hour rules (minimum wage, overtime, breaks), required posters, and youth employment restrictions (common for arcades employing minors).
Implement harassment prevention, safety training, and cash-handling controls; conduct background checks where appropriate and legally permitted.
If operating late hours, establish staffing and security procedures aligned with local ordinances.

Music, video, and public performance rights
If playing music or hosting events, secure public performance licenses (as applicable) rather than relying on consumer streaming accounts.
For live events, tournaments, or screenings, confirm rights and any venue licensing requirements.

Signage, exterior lighting, and nuisance rules
Obtain sign permits for exterior signage and comply with restrictions on size, illumination, and hours.
Manage noise, crowd control, and parking to meet local nuisance ordinances and lease requirements.

Insurance requirements (regulatory and contractual)
Maintain commercial general liability, property, workers’ compensation, and (if applicable) liquor liability and cyber coverage.
Landlords and lenders often require specific limits and endorsements (additional insured, waiver of subrogation); include these in the compliance checklist.

Contracting and IP considerations
Review game purchase/lease agreements for service levels, warranties, and compliance responsibility (including licensing of software/firmware).
If offering branded tournaments or using third-party IP in marketing, confirm trademark usage permissions and content rights.

Compliance management plan
Assign an owner/manager responsible for compliance, create a permit/license calendar (renewal dates, inspection cycles), and maintain a compliance binder (digital and physical) with permits, inspection reports, insurance certificates, equipment maintenance logs, and incident reports.
Define a process for tracking regulatory changes (local amusement ordinances, prize redemption rules, privacy updates) and updating policies and staff training.

Financing an arcade typically combines upfront build-out costs (leasehold improvements, electrical, flooring, decor), equipment purchases (new and used cabinets, pinball, redemption, VR), software and payment systems (card readers, POS), and working capital to cover payroll and maintenance during the ramp-up period. Your financing section should clearly separate one-time capital expenses from ongoing operating needs and show how each source of funding matches the asset’s useful life.

Owner Equity and Bootstrapping
Most lenders and investors expect the founder to contribute meaningful equity. Document the amount of cash you will invest, any equipment you already own, and “sweat equity” contributions such as self-managed build-out, repairs, and programming events.
Use bootstrapping to reduce risk: start with a smaller footprint, prioritize high-earning machines, use modular decor, and negotiate used equipment purchases with warranties or service agreements where possible.

Bank Loans (Term Loans)
Traditional term loans can fund build-out and equipment. In a business plan, include: purpose of funds (build-out vs. equipment), proposed loan size, term, interest assumptions, and collateral.
Banks will scrutinize predictable cash flow; arcades can be volatile by season and weekends. Strengthen your case by showing diversified revenue (admissions/play credits, redemption, parties, F&B if applicable) and a maintenance plan to minimize downtime.

SBA-Backed Loans (Where Available)
SBA-style programs can be well-suited for arcades because they may offer longer terms for real estate/leasehold improvements and equipment. Be ready to provide detailed build-out budgets, contractor bids, lease terms, and projections that reflect ramp-up and seasonality.
Highlight management experience, vendor relationships for parts/service, and clear controls for cash handling and inventory (tickets/prizes) since lenders often view these as operational risk points.

Equipment Financing and Leasing
Arcades are equipment-heavy, so specialized financing is often practical. Options include:
- Equipment loans secured by machines (new or used, depending on lender)
- Operating leases for VR systems or rapidly depreciating tech
- Vendor financing from distributors/manufacturers
Match repayment schedules to expected machine life and earnings. In the plan, list equipment categories, estimated quantities, target price ranges, and expected replacement cycles. Note that card readers, software subscriptions, and maintenance may not be covered by equipment loans and should be included in working capital.

Revenue Share and Placement Agreements
Some operators place machines with little or no upfront cost in exchange for a revenue split with the equipment owner. This can reduce capital needs but may limit margin and control over game mix and service response times.
If using revenue share, define in your plan: split percentages, who handles maintenance/parts, minimum performance thresholds, contract length, and whether you can rotate underperforming games.

Private Investors (Angel/Local Investors)
Arcades can attract community investors who like experiential businesses. Structure options include equity, convertible notes, or revenue-based instruments. Your plan should spell out governance (decision rights on major purchases, additional locations, or debt), distribution policy, and what milestones trigger follow-on funding.
Avoid overpromising returns; instead, show a clear path to stability: utilization targets by daypart, party booking pipeline, and repeat-customer programs.

Crowdfunding and Community Pre-Sales
Reward-based crowdfunding and pre-sales can finance decor, a signature game lineup, or a grand-opening push while also validating demand. Common arcade-friendly rewards include founding memberships, play credit bundles, party packages, name-on-the-wall perks, and early access nights.
In your plan, include fulfillment costs (merch, event staffing), timeline, and how you will handle refunds/expiration of credits to avoid future cash flow surprises.

Landlord and Tenant Improvement (TI) Contributions
Because arcades require significant electrical and layout work, negotiate TI allowances, rent abatements, or phased rent increases. Lenders like to see these concessions because they reduce your cash outlay.
Document the lease terms clearly: base rent, CAM/NNN charges, TI allowance, permitted use, hours, signage rights, and whether you can host parties/events.

Grants and Local Economic Development Programs
Some cities offer small business grants, facade improvement funds, or neighborhood revitalization incentives. These are not guaranteed and can be slow, so treat them as upside rather than core funding.
If applicable, include eligibility, application timelines, matching requirements, and any job creation or reporting obligations.

Working Capital Facilities (Line of Credit)
A revolving line of credit can smooth seasonality and fund inventory for prizes or bar/food components. In the plan, show your expected peak months, slow months, and how the line will be repaid (not permanently drawn).
Lenders will want strong controls around cash reconciliation, chargeback procedures, and inventory shrinkage mitigation.

How to Present Your Financing Mix
In the business plan, include a concise “Sources and Uses” section in paragraph form with line breaks:
Sources: Founder equity ($), bank/SBA loan ($), equipment financing ($), investor capital ($), landlord TI ($), other ($).
Uses: Build-out ($), equipment purchases ($), installation/electrical ($), POS/card system ($), initial prize inventory ($), opening marketing ($), licenses/permits ($), working capital reserve ($).
Explain why each source fits the use (e.g., longer-term debt for build-out, equipment financing for machines, equity for riskier early-stage costs).

Key Lender/Investor Concerns to Address
To improve approval odds, explicitly address:
- Equipment downtime risk: maintenance schedule, parts sourcing, technician coverage, and game rotation strategy
- Cash handling: card-based systems, reconciliation process, and fraud controls
- Prize and inventory management (if redemption): SKU controls, shrink prevention, reorder points
- Liability and safety: insurance coverage, supervision policies, and equipment inspection routines
- Seasonality: staffing model and marketing plan for weekdays vs. weekends, parties, and group sales
- Unit economics: contribution margin by revenue stream and clear break-even assumptions

What Not to Do
Avoid funding long-lived assets with short-term debt, relying on optimistic opening-month sales to cover debt payments, or underbudgeting electrical and HVAC upgrades. A credible financing plan includes a contingency reserve for change orders, delayed inspections, and early machine repairs.

The marketing and sales strategy for an arcade should focus on repeatable local demand, high-frequency visits, and group bookings. Unlike many retail concepts, an arcade benefits from momentum: the more people in the venue, the more attractive it becomes. The plan should balance always-on local marketing (to keep weekday traffic steady) with event-driven promotions (to create spikes that fill slower periods and drive word-of-mouth).

Target segments and positioning
Define priority customer segments and tailor offers by daypart:
• Families (weekends, school holidays): safe, clean venue, prize redemption/value bundles, birthday packages
• Teens and young adults (after school/evenings): competitive play, new releases, social vibe, memberships
• Adults/nostalgia + date nights (evenings): retro nights, tournaments, bar/food partnerships where permitted
• Corporate and groups (weekdays/evenings): team-building, private rentals, catered options, structured tournament formats
• Tourists and visitors (peak season): clear signage, easy-to-understand pricing, “best of” game recommendations
Positioning should clearly answer: why this arcade vs. alternatives (home gaming, cinemas, bowling, other arcades). Common differentiators include game mix (retro + new), cleanliness and safety, prize quality, food and beverage, event programming, and service speed.

Pricing and offer architecture
Use simple, transparent pricing to reduce friction at the counter and increase spend per visit:
• Core pricing model: pay-per-play, time-based unlimited play, card credits, or hybrid (choose and justify)
• Bundles: starter packs (credits + bonus credits), family bundles, “date night” bundles, weekday after-school specials
• Memberships/loyalty: monthly pass (unlimited/off-peak), stored-value incentives, points for visits and referrals
• Group rates: per-person packages for birthdays, schools, youth groups, corporate events (include food options if relevant)
• Promotions: scheduled (e.g., weekday happy hour, early-bird pricing) rather than constant discounts that erode perceived value
In the business plan, outline guardrails: minimum margins, blackout dates for discounts, and how offers change by season.

Channel strategy (how customers find and book)
Prioritize channels that match local discovery and group booking behavior:
• Google Business Profile: accurate hours, pricing basics, photos, events, and consistent posting; respond to reviews
• Local SEO: “arcade near me,” “birthday party arcade,” “family entertainment,” plus neighborhood keywords; dedicated landing pages for parties and events
• Social media: short-form video showing gameplay, prizes, winners, new machines, and event highlights; weekly schedule posts
• Community partnerships: schools, youth sports, community centers, tourist kiosks, hotels, malls, nearby restaurants
• Event platforms (selective): list public tournaments and special nights if they deliver incremental customers
• On-site capture: Wi-Fi splash page or QR sign-up to collect emails/SMS for promotions and reminders
For bookings, use a simple online system with clear packages, time slots, and deposit rules to reduce staff time and no-shows.

Content and messaging that converts
Arcade marketing performs best when it shows the experience and makes planning easy:
• Show: real footage of popular games, redemption counters, clean seating, and group areas
• Explain: how the card/credit system works, typical spend ranges, and how prizes are earned (without overpromising)
• Promote: “new game drops,” limited-time tournaments, seasonal prize refresh, school holiday programming
• Reduce anxiety: parking info, safety/age guidance, accessibility, party process, and what’s included in packages
Maintain a consistent weekly rhythm: one post highlighting new/featured games, one post promoting events/packages, one customer/community highlight.

Sales strategy for parties and group events
Group sales should be a dedicated funnel, not an afterthought. Include a basic pipeline in the plan:
• Lead sources: website forms, calls, walk-ins, partner referrals, inbound from Google reviews and maps
• Response standards: quick replies, templated package options, and a single point of contact during business hours
• Qualification: group size, age mix, date/time flexibility, budget, food needs, private vs. shared space preference
• Closing tools: clear PDF/landing page packages, deposit and cancellation policy, add-ons (extra credits, prize upgrades, food, dedicated host)
• Day-of execution: check-in flow, wristbands/cards pre-loaded, host script, upsell prompts that don’t disrupt the experience
• Post-event follow-up: thank-you message, review request, bounce-back offer for next visit or referral credit

Partnerships and local promotion
Focus on partnerships that produce measurable foot traffic:
• Schools and youth organizations: fundraising nights, reward programs, end-of-term events
• Employers: employee family days, team tournaments, corporate package discounts
• Adjacent businesses: restaurant cross-promotions, cinema/bowling bundles, mall-wide seasonal events
• Hotels and tour operators (if relevant): concierge flyers, QR booking links, group commissions where appropriate
Set terms in writing: what each partner promotes, tracking method (unique code/QR), and review cadence.

In-store merchandising and upsell
A significant portion of “marketing” happens inside the venue. Plan for:
• Clear wayfinding: pricing, how to start playing, top games, prize tiers, tournament schedule
• Staff prompts: simple scripts for first-time visitors (“most popular games,” “best value bundle,” “how tickets work”)
• Prize strategy: rotate prizes regularly, keep high-demand items visible, ensure perceived value aligns with effort required
• Add-on sales: food/drinks (if offered), party add-ons, extra credits at key moments (e.g., when card balance is low)

Retention and CRM
Repeat visits drive profitability. Build retention into operations:
• Loyalty program: points per spend/visit, referral rewards, birthday month offers
• Segmentation: families vs. teens vs. corporate; send different offers and schedules
• Automated messages: booking reminders, post-visit bounce-back, tournament announcements, holiday hours
• Community building: leaderboards, monthly tournaments, seasonal challenges, “bring a friend” nights

Promotional calendar
Include a 12-month high-level calendar to plan staffing and inventory:
• School holidays: extended hours, family bundles, midday events
• Seasonal peaks: summer tourism periods, winter indoor entertainment demand, local festivals
• Monthly tentpoles: tournament series, retro night, prize refresh week, partner fundraiser night
• Launch cadence: schedule new game introductions to create recurring reasons to return

Measurement and KPIs
Track performance with operationally useful metrics tied to revenue and utilization:
• Foot traffic by daypart and day of week
• Spend per visit and average credits sold per transaction
• Redemption cost and prize margin control (if applicable)
• Party/group inquiry-to-booking conversion rate and average group size
• Online booking volume, no-show/cancellation rate, and deposit effectiveness
• Repeat visit rate (via loyalty IDs), email/SMS list growth, and referral usage
• Review volume and rating trends; top complaint categories and resolution time
Use simple tests (two-week or monthly): adjust one variable (offer, channel, creative, schedule) and compare before/after performance.

Customer experience as a growth lever
Because arcades are highly review-driven, the plan should explicitly connect marketing to operational standards:
• Cleanliness and machine uptime targets; fast coin/card issue resolution
• Friendly onboarding for first-timers; visible staff presence on the floor
• Safety and behavior policies; clear rules for minors and group supervision
• Consistent prize availability and transparent redemption rules
A strong experience reduces marketing spend over time through higher ratings, referrals, and repeat visits.

The Operations and Logistics section explains how the arcade will run day-to-day: how guests move through the space, how games are maintained, how cashless systems and redemption are managed, how inventory is controlled, and how staffing and safety are handled. The goal is consistent uptime, fast issue resolution, and a smooth guest experience during both normal hours and peak events.

Facility layout and guest flow
Design the floor plan to minimize bottlenecks and maximize visibility for staff.
- Entry/host stand: greeting, wristbands (if used), event check-in, issue resolution.
- Main game floor: arrange by noise/traffic (rhythm and racing together; ticket games near redemption; skill/prize games in a visible zone).
- Redemption counter: placed where queues do not block game access; include clear signage for ticket-to-prize rules.
- Party rooms/event space: separated enough to manage noise; easy access to restrooms and food/beverage areas.
- Back-of-house: secure storage for prizes, spare parts, cleaning supplies, and cash-handling equipment; technician workbench with ESD protection for electronics.

Hours of operation and peak management
Set operating hours to match local foot traffic and staffing availability. Plan for predictable peaks (weekends, school holidays, evenings) and build procedures for:
- Queue management for popular games (time limits, staff-managed rotation).
- Overflow plans (opening additional lanes at redemption, deploying roaming floor staff).
- Event changeovers (party room resets, cleaning, restocking prizes, equipment checks).
- Noise and crowd control (volume settings, aisle clearance, posted rules).

Game portfolio operations (uptime and performance)
Define target game uptime and service response times (e.g., “critical revenue games addressed first”). Operate a structured maintenance program:
- Daily: power-up checks, coinless reader tests, calibration checks on high-use machines, cleaning of screens/controllers, ticket dispenser checks, test redemption scanners.
- Weekly: deeper cleaning, software/firmware checks where applicable, inspect wiring and connectors, tighten fasteners on motion/racing platforms, verify safety guards.
- Monthly/quarterly: preventative replacement of wear items (buttons, sticks, belts), test UPS/battery backups, review failure logs to identify recurring issues and retire underperforming titles.

Maintenance workflow and technician coverage
Use a ticketed maintenance system (simple spreadsheet or maintenance app) to record: machine ID, symptom, downtime start/end, parts used, root cause, and technician notes. Prioritize repairs by revenue impact and safety.
- On-shift response: floor staff trained to do safe first-line actions (reboot procedures, clearing jams, “out of order” tagging).
- Technician tasks: electrical/mechanical repairs, parts replacement, sensor calibration, network troubleshooting, firmware updates.
- Vendor escalation: define when to call manufacturer support and how to document issues (photos, error codes, serial numbers).
- Spares strategy: keep critical consumables and common failure parts on-site (ticket rolls, fuses, buttons, joysticks, sensors), and maintain a reorder point for each.

Cashless payment, game pricing, and access control
Most modern arcades rely on cashless (cards/wristbands/app) to reduce cash handling and improve reporting. Operationally, document:
- Device provisioning and replacement (lost cards, broken wristbands, refunds).
- Reader health checks and troubleshooting steps for staff.
- Pricing rules: standard credits, off-peak discounts, bundles, and promotional codes; governance for who can change pricing and how changes are approved.
- Audit routines: daily reconciliation of sales vs. system reports; investigate anomalies (unexpected free plays, reader failures, manual comps).

Redemption and prize logistics
If offering ticket redemption, treat the prize wall as a mini retail operation.
- Prize mix: balance low-cost “impulse” items with mid-tier and aspirational items; rotate frequently to keep repeat visitors engaged.
- Inventory control: SKU list with ticket cost, cost of goods, reorder points, and shrink tracking.
- Storage and security: locked storage for high-value items; restricted access and sign-out procedures.
- Counter operations: clear signage on ticket values, redemption rules, and exchange/refund policy; staff training on guest-friendly resolution for disputed ticket counts or malfunctions.

Food and beverage (if applicable)
If the arcade includes snacks, a café, or a bar, integrate its operations with the game floor.
- Separate storage zones (dry, chilled, frozen) and documented receiving procedures (temperature checks, FIFO rotation).
- Cleaning schedules and pest control coordination.
- Event packages (party bundles) with clear production timelines and staffing assignments.
- POS integration (combined reporting for games + F&B) and defined comp/void permissions.

Staffing model and shift structure
Define roles and staffing by daypart:
- Manager on duty: guest escalation, cashless system overrides, safety enforcement, end-of-day reconciliation.
- Floor attendants: guest assistance, basic troubleshooting, cleanliness, line management, monitoring for unsafe behavior.
- Redemption attendant: prize counter operations, inventory checks, restocking, shrink control.
- Technician(s): scheduled coverage during peak hours; on-call plan for critical outages.
- Event host(s): party coordination, timeline adherence, upselling add-ons, room resets.
Include training checklists for each role (opening/closing, incident response, equipment handling, customer service standards).

Opening and closing procedures
Document step-by-step checklists to reduce mistakes and ensure consistent quality.
Opening: power sequencing for machines, network checks, test transactions, redemption counter setup, restrooms inspection, safety walk (trip hazards), signage placement, music/volume settings.
Closing: cashless and POS reports export, secure storage lock-up, high-value prize count, wipe-down of controls, trash removal, power-down rules for sensitive equipment, alarm/door checks.

Cleaning and sanitation
Arcades have high-touch surfaces. Define cleaning frequency and accountability.
- High-touch: buttons, joysticks, screens, air hockey rails, VR headsets (if used) after each session or per manufacturer guidance.
- Floors and restrooms: scheduled checks during peaks and full clean at close.
- Supplies: approved cleaners that will not damage screens or plastics; microfiber policies to prevent scratches.

Safety, security, and loss prevention
Operational controls should cover guest safety and asset protection.
- CCTV coverage of entrances, redemption, cash-handling zones, and main floor; retention policy and access controls.
- Rules enforcement: age policies, behavior standards, prohibited items, and escalation paths for disturbances.
- Incident logging: injuries, disputes, equipment damage, and refunds recorded with time, staff, and resolution.
- Cash handling (if any): minimal cash on-site, safe drops, dual-control counts, and bank deposit schedules.
- Machine anchoring and cable management to reduce tipping and trip hazards; routine inspections of moving platforms and VR play areas.

Technology and network operations
Many games and cashless systems rely on stable networking.
- Network segmentation: separate guest Wi-Fi from operational systems (cashless, POS, back office).
- Backups: export sales and machine performance reports; store copies securely.
- Update policy: controlled windows for firmware/software updates to avoid peak-hour disruptions.
- Access management: role-based permissions for staff, password rotation, and immediate revocation upon termination.

Supplier and parts logistics
List key supplier categories and how you will manage lead times.
- Game manufacturers/distributors: procurement terms, warranty processes, and service contacts.
- Parts suppliers: priority shipping options, approved substitutes, and minimum stock for high-failure components.
- Prize vendors: reorder cadence aligned to redemption velocity; seasonal planning (holidays, summer).
- Cleaning/consumables: standing orders for ticket rolls (if used), sanitizers, paper goods, and maintenance items.

KPIs and operating cadence
Track a small set of operational metrics and review them on a fixed schedule.
- Game uptime and top downtime causes (weekly).
- Revenue by game category and machine performance trends (weekly/monthly).
- Redemption margin and prize shrink (monthly).
- Labor scheduling vs. peak demand and guest wait times (weekly).
- Refunds/complaints and incident frequency (monthly).
Use these reviews to adjust the game mix, parts stocking, staffing levels, and training focus.

Contingency planning
Prepare written playbooks for predictable disruptions.
- Power or internet outage: what remains operational, how to communicate to guests, and refund/credit policies.
- Critical machine failures: immediate signage, safe shutdown, and quick swap plans for high-traffic areas.
- Crowd surge events: staffing call-in list, queue controls, and temporary floor reconfiguration.
- Health/safety incidents: first-aid response, reporting, and when to close zones or the full site.

The Human Resources & Management section should explain how the arcade will be staffed, supervised, and operated day-to-day while maintaining safety, customer experience, and machine uptime. Investors and lenders will look for clear accountability (who is in charge of what), realistic staffing levels for peak/off-peak periods, and controls for cash handling and equipment maintenance.

Management Structure
Define a simple structure that matches your size and hours of operation. A typical arcade management layout includes:
Owner/General Manager (GM): overall performance, budgeting, vendor relationships, marketing, compliance, and hiring decisions.
Operations/Shift Managers: open/close procedures, staff scheduling, customer issue resolution, refunds/comp policy, and incident reporting.
Game/Facilities Technician (in-house or contracted): preventative maintenance, troubleshooting, parts inventory, and vendor escalation for specialized machines.
Front-of-House (FOH) Team Leads: customer flow, party/event execution, prize counter control (if applicable), and cleanliness standards.
If the business includes food and beverage, clearly separate responsibilities for food safety and bar management (where applicable) from arcade operations.

Key Roles and Responsibilities
Owner/GM:
• Sets service standards (greeting, refunds, safety messaging, queue management).
• Approves purchasing for machines, parts, redemption prizes, card/coin systems, and cleaning supplies.
• Owns compliance: occupancy limits, child policies, incident logs, CCTV retention, and any local licensing requirements.
Shift Manager:
• Runs pre-shift checklist (machine readiness, card readers, coin jams, prize stock, signage, restrooms).
• Manages cash control and end-of-day reconciliation for coin, card, and POS systems.
• Records downtime and initiates fixes or service tickets.
Attendants/Hosts:
• Customer onboarding (how to load/reload cards, rules of play, prize redemption process).
• Floor monitoring for safety (running, crowding, misuse of machines) and quick resets for minor issues.
• Party support: room set-up, timing, guest flow, clean-down, and guest satisfaction follow-up.
Technician:
• Maintains high-uptime standards through daily checks and scheduled preventative work (button/stick wear, ticket dispensers, calibration).
• Manages spare parts (fuses, switches, belts, readers, tickets, consumables) and tracks usage to reduce repeat failures.
• Documents fixes and recurring issues to guide replacement decisions.

Staffing Plan (Hours, Coverage, and Flexibility)
Explain how coverage will scale with demand. Arcades typically require heavier staffing on evenings, weekends, school holidays, and during party blocks. Address:
• Minimum staffing per shift: a manager on duty, at least one floor attendant, and access to a technician (on-site during peaks or on-call).
• Peak triggers: number of active players, party bookings, or redemption counter traffic that requires adding a second attendant.
• Cross-training: attendants trained for prize counter, party hosting, and basic machine resets to reduce bottlenecks.
• Break coverage: how breaks will be managed without leaving the floor unattended.

Recruiting and Hiring
Identify candidate sources and what “good” looks like for arcade roles.
Candidate sources:
• Local retail/hospitality talent, students for part-time roles, and technical candidates from electronics/maintenance backgrounds.
Selection criteria:
• Customer service under pressure, reliability for weekend shifts, comfort enforcing rules politely, and basic cash-handling accuracy.
Hiring process:
• Structured interview with scenario questions (refund request, guest dispute, machine malfunction, lost card).
• Reference checks for cash-handling roles.
• Background checks where appropriate, particularly for managers and roles supervising minors.

Training and Onboarding
Detail a short, repeatable training program that protects the guest experience and reduces loss.
Training topics (recommended):
• Guest service standards and escalation paths.
• Card/coin system operation, reloads, refunds, and troubleshooting common reader issues.
• Safety: trip hazards, crowd management, appropriate conduct, and handling intoxicated or disruptive guests (if adults are served).
• Party execution playbook: timelines, scripts, room turnover, and upsell boundaries.
• Cash control: till counts, reconciliation steps, void/refund approvals, and shift handover logs.
• Prize counter controls (if redemption): inventory counts, issuance rules, and shrink prevention.
Document training with checklists and require sign-off before solo shifts.

Compensation, Incentives, and Scheduling Practices
Describe how you will pay competitively for your local market without claiming exact wage figures. Include:
• Hourly staff pay bands by role (attendant, host, technician, manager).
• Incentives tied to controllable outcomes: party conversion, membership/loyalty enrollments, positive reviews, or uptime targets for technicians.
• Scheduling approach: published schedules in advance, swap rules, overtime control, and on-call protocols for maintenance emergencies.
• Staff perks: free play policies (clearly limited and tracked), meal discounts (if applicable), and training progression.

Performance Management
Show how you will measure and improve performance using practical indicators relevant to an arcade.
Operational KPIs to track by shift or week:
• Machine uptime/downtime logs and repeat-failure list.
• Refunds/voids frequency and reasons.
• Guest incident reports and resolution time.
• Party execution quality (on-time starts, room turnover, guest complaints).
• Cleanliness audits and safety walk results.
Use a simple cadence: daily shift notes, weekly manager review, and monthly staff check-ins.

Policies and Controls (Cash, Safety, and Loss Prevention)
Arcades handle frequent small transactions and high foot traffic, so controls should be explicit.
Cash and transaction controls:
• Dual counts for opening/closing tills; manager approval for refunds/voids above a set threshold.
• Reconciliation between POS, card system reports, and cash deposits.
• Secure storage for cash and high-value redemption items; limited access list.
Safety and guest policies:
• Clear rules for machine use, age supervision, behavior expectations, and queueing.
• Documented incident reporting; first aid kit access and staff trained on response steps.
• Equipment safety checks and lockout/tagout approach for machines taken out of service.
CCTV and privacy:
• Camera coverage for entrances, cash points, and prize areas; defined retention and access policy.

Compliance and Risk Management
Address how you will meet local requirements without listing assumptions as facts.
Common areas to plan for:
• Business licensing and occupancy/fire code compliance.
• Employment law compliance (work permits for minors, break requirements, timekeeping).
• Food safety certifications and alcohol compliance if applicable (separate training, responsible service).
• Insurance coverage aligned to operations (general liability, workers’ compensation, property/equipment, cyber/payment risks).
Include who is responsible for maintaining certificates, inspection records, and renewal dates.

Culture and Customer Experience Standards
Define the “feel” of the arcade in operational terms so staff behavior is consistent.
Examples of standards to include:
• “Floor-first” mindset: staff are visible on the floor, proactively assisting rather than staying behind counters.
• Fast fixes: acknowledge machine issues immediately, offer alternatives, and log the fault for repair.
• Respectful rule enforcement: consistent approach to line cutting, unsafe play, or disruptive behavior.
• Clean and bright: scheduled micro-cleaning during slow periods and full reset at close.

Succession and Coverage Planning
Show how the business runs if the owner is unavailable.
• Name the backup decision-maker (lead shift manager) and what approvals they can make (refund caps, emergency maintenance, closing early).
• Document core procedures: open/close, cash reconciliation, party operations, machine downtime reporting, vendor contacts.
• Maintain a contact list for critical vendors (game distributors, card system provider, electrician, locksmith) and a parts reorder point system.

Organization Summary (Insert Your Actual Plan)
Use this space to summarize your intended staffing for year one:
• Management: [Owner/GM], [#] shift managers.
• Front-of-house: [#] attendants/hosts (mix of part-time and full-time).
• Technical support: [in-house technician/contractor], coverage plan for peak times.
• Specialists (if applicable): party/event coordinator, redemption lead, bar/kitchen manager.
Then state your hiring timeline (pre-opening, soft launch, full launch) and training duration before staff work independently.