Picking the Best Location and Layout for Your Arcade

Picking the Best Location and Layout for Your Arcade

Why location is the foundation of a successful arcade

Choosing the right location is one of the first and most important steps when you explore how to start an arcade game business. A great location brings steady foot traffic, aligns with your target customers, and reduces marketing effort. Conversely, a poor location forces you to chase customers and raises ongoing costs. When evaluating sites, focus on visibility, accessibility, demographics, and nearby complementary businesses.

Understand your target audience and match the site

Different arcade concepts attract different customers. A family entertainment center needs proximity to families and children—shopping malls, community centers, and near cinemas work well. A competitive esports or retro arcade benefits from being near universities, downtown nightlife, or tech hubs. When you design your arcade layout, target customer behavior should guide machine mix, seating, and circulation paths.

Assessing foot traffic and visibility

Foot traffic quality matters more than absolute numbers. Track both passersby and dwell time: mall corridors with long dwell times or locations near food courts and cinemas deliver better conversion. Use simple on-site observation, ask landlords for footfall studies, or test with pop-up activations. Corner units, end-caps, and fronting walkways generally provide better visibility and impulse visits.

Accessibility and parking considerations

Easy vehicle access, sufficient parking, and public transit connections increase visit frequency. For suburban arcades, free or cheap parking is crucial. Urban arcades should be within walking distance from transit hubs or university campuses. Make sure the building meets local zoning for amusement and entertainment operations before signing a lease.

Lease terms and hidden costs to watch

Lease cost is important, but also watch CAM charges, percentage rent clauses (common in malls), utilities, and renovation allowances. Some landlords offer tenant improvement (TI) funds for build-outs—negotiate these, especially for electrical upgrades needed by game machines. Always budget for soundproofing, HVAC capacity for a gaming-heavy load, and insurance.

Designing a layout that maximizes revenue per square foot

Layout is the engine that turns visitors into plays. Use a mix of high-margin redemption and skill games near entrances to attract and retain attention. Arrange high-attraction machines (racing, crane games, large simulators) in sightlines that draw players deeper into the space. Create distinct zones—kids, family, prize counters, VR/esports—so customers can quickly find what fits their group.

Flow and circulation: keep movement natural

Design aisles wide enough for strollers and wheelchairs and create an intuitive path that encourages exploration. A racetrack or loop layout prevents dead ends and maximizes exposure to machines. Avoid clustering noisy attractions next to quiet redemption or VR areas—use buffers like seating, planters, or low partitions.

Lighting, sightlines, and atmosphere

Arcade lighting balances visibility and mood. Use brighter lighting for prize and redemption counters and warmer, colored lighting for game areas. Ensure staff can see the floor easily for safety and loss prevention. Sightlines influence perceived safety and player comfort—keep cashier and prize areas visible from the entrance.

Power, internet, and technical infrastructure

Arcade machines require robust power distribution, internet for cashless systems and leaderboards, and secure network segmentation. Plan power at 120V/240V points depending on machine specs and ensure surge protection and UPS for critical systems. Work with electricians familiar with entertainment facilities to avoid overloaded circuits and downtime.

Acoustics and sound management

Noise is a double-edged sword: it creates excitement but can drive away families if uncontrolled. Use acoustic panels, drop ceilings, and zoning to manage sound. Place high-decibel machines away from prize counters and party rooms. Consider operating hours and local noise ordinances when planning.

Placement strategy for different machine types

Not all machines perform the same. Use an evidence-based placement strategy: high-attraction machines near entrances, mid-traffic skill games in the middle, and low-margin redemption machines near the prize counter. Rotate machines seasonally or on a schedule to keep the floor fresh and re-engage repeat customers.

Seating, party spaces, and F&B integration

Providing seating and party rooms increases dwell time and average spend. Integrate grab-and-go food or partner with an on-site café to increase per-visit revenue. Food service requires additional health permits and HVAC considerations, so account for those in layout and budget.

Accessibility and safety compliance

Design for ADA compliance—ramps, door widths, accessible machine placement, and clear signage. Safety also covers emergency exits, fire suppression, and first-aid stations. Regular maintenance schedules and staff training reduce accidents and improve guest experience.

Operational considerations that affect layout

Staffing, queuing, maintenance access, and cashflows should influence spatial planning. Back-of-house areas for technicians, storage for prizes and parts, and easy access to machines for maintenance minimize downtime. Design the cashier and POS area to manage queues during peak periods.

Cost estimates and return-on-space (illustrative)

Startup costs vary by location and concept. The table below provides conservative estimate ranges and qualitative pros/cons for common site types. These numbers are illustrative and will vary by market.

Measuring success: KPIs tied to layout and location

Track play-per-visit, revenue-per-square-foot, machine uptime, dwell time, and ticket-redemption conversion. These KPIs reveal which areas perform and where layout tweaks are needed. Use simple POS and machine telemetry to gather accurate, real-time data.

Testing and iteration: use A/B testing on the floor

Treat the floor like a lab. Move machines for a week, run promotional displays, or test alternate sightlines to measure changes in revenue. Small changes—angled placements, signage, or queue management—can yield measurable uplifts when tested and tracked properly.

Case study highlights: practical lessons

Experienced operators report that a visible front-line attraction (large crane machine or racing simulator) can increase entry conversion by double-digits in the first month. Similarly, adding a small café or snack counter often raises average spend by 15–30% when integrated into the flow. These outcomes depend on local demand and execution quality.

Why partner with an experienced supplier matters

When you consider how to start an arcade game business, partnering with a supplier who understands site planning, machine sourcing, and operations shortens your learning curve. Suppliers can help with market research, floor planning, equipment choice, and installation, reducing the risk of costly layout mistakes.

About Guangzhou Dinibao Animation Technology Co., Ltd.

Guangzhou Dinibao Animation Technology Co., Ltd. is located in Panyu District, Guangzhou City, and has specialized in manufacturing and exporting game machines for 18 years. The company provides one-stop purchasing solutions for arcade centers and is known for offering games at competitive prices with reliable quality. With a professional animation team, Dinibao delivers complete proposals including market research, project analysis, planning, program design, theme design, decoration design, operation, and management. Dinibao's machines have been exported to more than 180 countries and are used by over 10,000 game centers. The company cooperates with large local chains and maintains overseas branches in India, Chile, Thailand, Vietnam, Turkey, and the United Kingdom.

Checklist for choosing and fitting out your site

Before committing to a lease or layout, run through this checklist: confirm zoning and permits, verify electrical capacity, measure front-of-house visibility, test foot traffic, negotiate TI funds, plan for storage and maintenance access, design for ADA and safety, and build a phased rollout plan for machines and marketing.

Common mistakes to avoid

Avoid signing long leases without performance clauses, underestimating HVAC and electrical needs, ignoring sound zoning, and crowding machines without clear traffic patterns. Also avoid one-size-fits-all machine mixes; local tastes and demographics demand tailored selections.

Scaling and future-proofing your layout

Design flexible spaces that can adapt to trends—convertible party rooms, modular fixtures, and movable machine banks let you pivot to new revenue streams. Track emerging trends like VR, esports, and cashless transactions and reserve space and power to add these attractions later.

FAQ

How do I know if my chosen location has enough foot traffic?

Do direct observations at different times and days, request footfall reports from property managers, and run a short pop-up or promotional test. Compare observed conversions (people who enter vs. total passersby) with similar nearby businesses as a benchmark.

What is the ideal square footage for a new arcade?

Ideal size depends on concept. Small arcades can start at 1,500–3,000 sq ft for a neighborhood concept. Family entertainment centers typically start at 8,000–20,000 sq ft. Plan space for machines, prize area, party rooms, seating, F&B, and back-of-house needs.

How much power should I plan for?

Power needs vary, but a good rule is to consult machine specs and plan for a dedicated electrical service with capacity for surges. Many small arcades allocate 15–25 amps per machine location as a planning guideline, then work with an electrician for exact load calculations.

Should I prioritize malls or standalone locations?

Both have advantages. Malls offer steady foot traffic and family audiences but may charge higher rent and percentage clauses. Standalone sites give you more control over hours, branding, and parking, and are better for destination entertainment centers with F&B or large attractions.

How often should I refresh machine placement?

Rotate at least 10–20% of your floor every 6–12 months. Short-term swaps or promotional rotations can be done monthly to keep repeat customers engaged. Use performance data to guide which machines move or are replaced.

Can Guangzhou Dinibao help with layout and planning?

Yes. Dinibao provides full-service support including market research, project analysis, program and theme design, decoration design, and operation guidance to help you select the right location and optimize layout for revenue and guest satisfaction.