Another real big plus about going with free games is that you don't have to worry about having the latest and greatest. You could populate your entire place with games for about what one new game would cost you from the distributor.
Figure one of the smaller new driving games would run you $4000. It might very well take you 5 years just to get your $4000 back. At which point your game is now worth $800 and is just now starting to turn a profit (but isn't taking in nearly as much cash because it is old).
Or, spend that same $4000 on 20 older games in good condition (a combination of a good auction, and some RGVAC posts could come up with this easily). You wouldn't have to worry about the games losing value at all. Once a game gets more than about 10 years old it pretty much stops depreciating.
Also, when your games are on free play it really doesn't matter which ones you have. A free gameroom full of "also ran" titles will still be a lot more popular than a pay gameroom full of top titles.
There would of course still be some upkeep expenses, but it really wouldn't be that bad. Figure on having to replace a few games a year. Over time the total upkeep expenses will actually go way down, since you can always strip parts out of the dead games in the back room (it helps to just keep buying the same titles).
The final part of the plan is to actually make money. That part is simple. Just closely examine the nearest (busy) pizza buffet. Match their price and quality, and within a few months you will have all their business. Families will pick your place over the other one every single time because of their kids. Teenagers will pick your place because it gives them something else to do besides just eat. While people in their 20s and 30s are actually old enough to remember playing arcade games, and will pick your place for that reason. People in their 40s and 50s will be coming with their children, and seniors will bring their grandchildren.
One suggestion about pricing. Just have ONE PRICE, and make it equal an exact dollar amount once tax is included. Children might eat less, but they are also the ones more likely to break your games. The kids will drag their parents there anyway, even if your place does cost slightly more for children than the competition.
The reason you want to have it be an exact dollar amount per person is that it will save you a lot on labor costs (you should only need one cashier, even if the place is huge), because every transaction will be a no brainer, "How many people? 5?, Ok, that will be $30. Simple prices also makes it much less likely for your cashier to screw up (can't press the wrong button, cause there is only one button, no fumbling with change, or running out of pennies). If it is a family run business then you won't even need a real cash register (thus saving a bit of cash there).
Ideally you should be able to run the place on 2 or 3 employees. 1 cashier, one pizza cook, and one dining room attendant. Depending on the size of the place you could probably even skip out on the dining room attendant. Of course running that lightly staffed would require making up lots of pizzas in the morning.
One other suggestion that will really make your place stand out from the rest. Don't engage in pizza buffet crapflooding. Every pizza buffet around seems to do this. As soon as they start getting busy they start limiting the pizza toppings to mushrooms, peppers, and olives (or at least making sure every pizza has one of those 3 on it). Cici's isn't so bad about that, but Pizza Hut, Imo's, and about a half dozen privately owned pizza joints I have been to are terrible in this respect.
The reason they do that is because the general public doesn't want those toppings on their pizza, and thus the buffet remains full. Yeah, I know a bunch of you will chime in and say you love those toppings. I am sure you do. But go to a real pizza buffet and watch how it works. Those are the toppings of death. They are always the last ones to go. I personally suggest just having six pizza slots, cheese, pepperoni, sausage, ham, veggie (you can rotate exactly what is on this), and a special slot for requests. And yes, you should do requests, some people pick their pizza buffet based on the fact that the pizza cook will make a ham and onion pizza if they ask for one.
If you REALLY have some guts, then you can open up in the exact same strip mall as your competitor and drive them out of business. But I would only do that if it was a corporately owned place, I wouldn't do it to a family owned business.
Can you tell I have thought about this one a bit?
