Building an indoor playscape is an exciting venture. It’s fun to choose all the innovative equipment designs and think of the kids who will enjoy them. But it’s also important to focus on strategizing for your business. Indoor playgrounds can be a profitable venture with the right planning and consideration. With a new playground, your business can attract new customers and provide recreation and fun to local communities.

In this guide, you’ll learn the various ways you can make more money from your indoor play area. We’ve included all the information you need to craft a successful business plan to get you started. With all our tips and tools, you’ll be well on your way to creating a creative, entertaining space for kids of all ages.

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Indoor Playground Business Profit and Return

The value of the global family entertainment center market reached $34.6 billion in 2024. The industry will only continue to grow, as experts expect it to be worth 56.24 billion by 2029. The demand for unique experiences is a key driver for this growth.

While indoor playgrounds can be profitable, your profit margins may vary depending on your business model, overhead costs and location. Some businesses use a family entertainment center as their primary source of revenue. For other companies — like malls and retail outlets — an indoor playground attracts families and boosts revenue.

Overhead costs can greatly impact your indoor playground’s profits. If you plan on renting a space, rent may be your biggest overhead expense. A large building will cost more to rent, but more space allows you to build more attractions and house more families at once. You can also rent out rooms for birthday parties or fitness classes.

You should also consider the location you pick for your business. Commercial rent costs more in areas with higher visibility. However, families usually find indoor playgrounds via word of mouth and internet research. Since visitors plan ahead of time, you don’t have to worry about visibility as much. You could take advantage of lower rent costs at a more remote location to increase your profit margin.

As you begin planning your indoor playground, research your local market to determine business costs in your area.

Ways to Make Your Play Area More Profitable

When it comes to new businesses, hard work and creativity are an unbeatable combination. The indoor playground business is a unique industry, with multiple opportunities to increase profit margins. Consider the ideas below to make your business a success.

1. Find Ways to Lower “Dead Time”

Most family entertainment centers find their busy periods align with school schedules. Weekends and school breaks are typically the most profitable times of the year. However, business owners have to pay rent and overhead costs year-round. The best way to increase profit is to find ways to attract people during off-peak times.

Here are a few ideas you can try to increase traffic to your playground:

  • Offer fun adult activities, such as morning or evening fitness classes.
  • Open your doors to local businesses with custom team-building events on weekdays.
  • Run one-day camps during local school professional development days — working parents will appreciate the child care.
  • Create opportunities for school field trips.
  • Offer after-school groups, such as a dodgeball league.
  • Run a daycare service.
  • Offer toddler-level activities and market to families with non-school-aged kids.
  • Work with local homeschooling groups to offer gym classes or enrichment activities.

2. Invest in Internet Marketing

Most parents will choose what to do with their weekends via online research. They may use search engines like Google, which is an opportunity for your website to catch their attention. You’ll need to use effective online marketing tactics — like search engine optimization, content marketing or pay-per-click advertising — to improve your chances of potential customers finding you.

It’s also a good idea to build a social media presence. Eye-catching, colorful equipment makes for great Instagram and Facebook photos. You can encourage families to post about their experiences at your playground on their profiles. When a parent posts a picture of kids enjoying your playground, their network will see the benefit of visiting your business. Word-of-mouth via social media is a powerful tool.

3. Design Spaces With Fun in Mind

Profitability requires more than foot traffic — you’ll need to build customer loyalty and increase the length of time guests spend at your business. For example, adding new, innovative equipment will entertain kids for longer. Custom-built facilities and one-of-a-kind attractions could also encourage people to stay longer and choose your business over others.

Creating a space that beckons people back also requires great bathrooms, retail space and check-in areas. Each space should have a smart traffic flow and look attractive to kids and adults. You could work with a designer who has experience in the entertainment industry to create the layout of your space.

4. Host Exciting Events

Events are a great way to generate extra income for your business. Creating high-quality event experiences can introduce new families to your business. If kids have a good time, they might return or want to have their parties at the same place.

The following are just a few ideas for events you could host at your playground:

  • Birthday parties: Whether you close the space for birthdays or give party-goers a private room, a great birthday event can be the lifeblood of your business. You could offer multiple birthday packages at varying price points and include more activities for higher price tiers.
  • Holiday events: Another way to appeal to kids and their families is through holiday events and specials. Have holiday characters visit your play space and offer picture packages. You could also sell holiday membership specials to increase revenue.
  • Community events: You can host community events at your indoor playground space throughout the year to bring in new customers. This will showcase your commitment to serving the public. Events like game nights, food drives, scavenger hunts and crafting sessions could be fun.

5. Sell Food and Beverages

Selling food at your business can increase indoor playground profits considerably. While you’ll have to invest more money and get additional licenses, food can be a great addition to your business. Guests will stay longer when they can refuel and rehydrate, and you’ll gain another source of revenue for your business.

6. Remember the Parents

Families are more likely to stay longer when there’s something for everyone. While most of your facility will cater to active kids and their wild imaginations, it’s parents who take them there in the first place. Parents will appreciate the break from their routines provided by your playground, but they’ll also want something to do while relaxing. A coffee bar or an internet cafe can keep parents occupied while their kids play.

7. Include Kids of All Ages

Just like their parents, small kids can feel left out if there aren’t activities they can do. The tremendous size of many indoor playgrounds can also feel intimidating to smaller kids. To make them feel more at home, you could create a separate area designed specifically for them. Set aside a smaller room for your littlest visitors and fill it with age-appropriate play equipment and activities.

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8. Get High-Tech

Now that devices like smartphones and tablets are common, kids need an extra dose of “wow” to feel impressed. Upgrading to an interactive play experience is a great way to keep kids engaged both mentally and physically. Play structures that turn the experience into a game or respond to kids’ movements through interactive lighting technology add to the fun, encouraging healthy competition and exploration.

9. Build Your Local Reputation

While advertising online through websites and social media is great for reaching customers in other areas, word-of-mouth is the most effective way to build a solid reputation. After all, 88% of consumers report they trust their friends more than traditional media.

Partnering with local businesses and schools is an excellent place to start. You could provide nearby schools with free or discounted tickets to give to students at the end of the academic year. This would generate interest among local kids, helping to build your regular customer base.

Indoor Playground Business Plan

Creating a great business plan is the first step to success for a profitable indoor playground. A business plan can help you understand your financial startup costs and how many customers you need to make enough money. They also prompt you to research your competition and outline how you plan to succeed. Your business can flourish with this plan as its foundation.

Create your business plan by following these steps:

1. Executive Summary

Start by providing an overall summary of the market opportunity, proposed business, location, management structure and loan requests. You should also explain your mission and objectives for your indoor play area business.

2. Company Description

Next, you’ll describe the concept of your proposed indoor play area or entertainment center. What is your business’s unique offering? Are you the only family fun center in the area? Are other companies targeting older kids while yours is geared toward toddlers? Lay out your startup costs and a budget for recurring expenses.

Also, you’ll want to summarize your overall business model. Will you offer monthly memberships, hourly reservations, pay-to-play equipment or a combination? Give examples of other successful businesses in your area and how you intend to compete.

3. Market Analysis

In this section, you’ll lay out your potential customer base and competition. Consider the population and demographics in your area. A community of 10,000 people can mean a very different marketplace depending on who lives nearby. A retirement town may have a large population but few kids. You can find demographics in your city or town using U.S. Census data.

You’ll also want to analyze your competition and discuss how you plan to compete. Other indoor playgrounds in your region can be significant competitors. Because of the unique value of indoor play areas, people often drive from far away to visit them. Building one in a new city can give families a great experience with less of a drive.

Other competitors might include parks and recreation or after-school programs. Bowling alleys and movie theaters often top families’ lists of birthday party venues.

4. Organization and Management

Here, you should outline the structure of your company and who will manage it. You’ll list requirements for managers, plus full-time and part-time employees. For example, you may want employees to have CPR certifications or experience with kids. List your rules in this section, such as how many kids one employee can supervise.

This part of your business plan should also outline your pay structure if you use one. A pay structure lists the hierarchy of salary levels within your business. This information will help you determine how many employees you need to hire and how much payroll will cost.

5. Service or Product Line

This is the place to describe your specific products and services. First, you’ll outline how you plan to use your space. You can also outline specific structures and main attractions you plan to include.

If you plan to offer other services — such as private parties or fitness classes — outline each of these services and their price point for consumers. Include a list of the concessions or merchandise you’ll sell in this section, too.

6. Marketing and Sales

Next, you’ll discuss your marketing strategy and budget. This should include a detailed plan for the types of marketing tactics and platforms you will use and how much you’ll spend on each one. For sales, you can calculate how many kids or families you’ll have to bring in each month to have a comfortable profit margin.

7. Financial Projections

As part of your financial projections, you’ll look at how your overhead and projected inflation will change your indoor playground’s business costs over time. You should also calculate a break-even point showing how much monthly revenue you need to break even on your investment.

8. Appendix

Include any supporting documents for your business plan in an appendix. Your appendix can include research on demographics, competition and financial costs. It may consist of additional charts that demonstrate where you got your numbers from.

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Industries That Benefit From Indoor Playgrounds

While play areas often form part of an entertainment destination, they’re also perfect for adding a bit of indoor fun to other businesses. Indoor playgrounds attract business from young families. They can help parents manage their active kids while they shop and offer a superior experience.

Below are some industries that benefit from indoor play equipment.

Retail

Malls and toy stores can benefit from indoor playscapes for their guests. Indoor playgrounds turn retail spaces into destinations, bringing foot traffic and keeping visitors there longer. The added entertainment will put visitors in the right frame of mind to continue shopping.

Playgrounds can also benefit parents. With the proper setup and supervision, a playscape can serve as a drop-off area for busy families. They can get their shopping done while your staff watch their kids.

Child Care

Day care is a considerable investment for many families. An indoor playground can set your daycare center apart and make your services worthwhile. Parents see playground equipment as beneficial because it helps with child development and social skills. Indoor play areas also encourage kids to exercise and release their energy in a positive way.

With indoor equipment, kids can play every day, regardless of the weather. This will make your staff’s job more manageable, and parents and kids alike will be happy to return each day.

Health Care

A waiting room full of soft play equipment makes going to the doctor a fun activity. Adding some unexpected features to your health care business will spread the word that your office is the best in the area for small kids.

Soft playground equipment can also be useful for children’s physical therapy. Custom-designed, kid-centric equipment in children’s hospitals can make healing fun for families. You’ll also encourage physical exercise at an early age, keeping your patients healthy.

Restaurants

Turn your dining area into a kid’s paradise with an indoor playground. Eye-catching playground equipment attracts families with kids. Helping families occupy their busy kids can make mealtime more relaxed, and you can show your commitment to children’s health.

Movie Theaters

As exciting as it is for kids to see their favorite characters on the big screen, it’s normal for their attention to wander during the slower moments of a movie. Adding playground equipment to movie theaters lets kids play before or after the show, helping them focus on the movie better.

Museums, Zoos and Aquariums

With custom-designed playgrounds, your business can provide an educational discovery zone for kids. Kids love the chance to get active, and parents appreciate the opportunity to help their kids learn and grow. Zoos and Aquariums can offer animal and aquatic-themed playgrounds to occupy kids when it rains. By designing custom indoor equipment, you can build a themed playscape that fits your purpose and mission.

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Frequently Asked Questions About Starting an Indoor Playground Business

We’ve compiled some of the most common questions and concerns about building an indoor playground.

How Much Does It Cost to Build an Indoor Playground Business?

Indoor playgrounds are highly customizable and can accommodate many budgets. The factors that impact cost the most are the size of your venue and the types of equipment you use. Adding an indoor playground to an existing business is cheaper, and you can choose cost-effective solutions to stretch your budget. For example, we offer a range of affordable, ready-to-ship Soft Play elements in our Pick & Play collection.

Starting a family entertainment center from scratch will require a bigger budget. The startup costs would include land, construction and playground equipment. Renting an existing, smaller location would be more economical. However, investing more will give you a larger space and more budget for custom indoor playground equipment.

The best way to find out how much it costs to build an indoor playground business is to research your local real estate prices. You can also contact your playground equipment vendor to discuss designs and budgets.

Is an Indoor Playground a Good Business?

An indoor playground offers families a weekend activity when it’s raining or too cold to go to the park or play outside. They can also provide air-conditioned comfort in the hot summer. The success of your indoor playground depends on the work the business owner puts in and the demand they generate.

What Is an Indoor Playground’s Annual Income?

While multiple factors influence an indoor play center’s income, the most important is how many customers you serve. A large facility with exciting attractions can attract more guests and keep them entertained longer. However, you’ll also have to pay more in rent and payroll. A small facility can seek more indoor playground annual income by offering additional services, like day care, classes and dining.

Are Soft Play Centers Profitable?

Soft play centers are indoor playgrounds featuring padded floors and equipment. They attract families with a mid-to-high level of disposable income who seek entertainment and childcare. The more diverse your offerings, the more profitable your center can be. For example, adding a high ropes course or a water play area can attract older kids, while younger kids enjoy the soft play area.

How Much Does It Cost to Operate an Indoor Playground Business?

In addition to startup costs, you must factor ongoing expenses into your indoor playground business costs. These expenses include:

  • Overhead costs
  • Lease
  • Regular deep cleaning
  • Scheduled maintenance checks
  • Payroll
  • Staff training
  • Marketing
  • Legal compliance

You’ll need to account for these operating costs to determine if you can turn a profit. One of the best ways to do this is to use this information as the basis for your pricing. Plus, selling extras — such as snacks or merchandise — and providing a diverse experience can entice customers to spend more, so you can also factor those costs into your operation.

What Are the Determining Factors for Initial Indoor Playground Costs?

The cost of creating and installing an indoor playground will vary depending on a few factors, such as:

  • Scale: The size of your playground will affect the size of your project, and a bigger space will require a budget to match. For example, a small indoor playground at an existing building will cost less than a large family entertainment center in a new building.
  • Design: Attractive playgrounds draw kids in, so it’s vital to design equipment and a play space that is beautiful and functional. While you may need to pay more for design features, the investment will quickly pay off.
  • Shipping: Playground equipment is often heavy and may require specialty shipping. Including shipping costs in your budget will help you get the equipment to your location with fewer surprises.
  • Installation: Proper installation is crucial for the safety of everyone who uses your playground equipment. It is wise to budget for specialty installation services if your equipment is in various shapes and sizes.

Do You Need a License to Open an Indoor Playground Business?

You need two basic licenses for an indoor playground in the United States. They include:

  • General business license: You need a general business license for registration and tax purposes. This license normally costs about $300.
  • Doing Business As (DBA) license: A DBA license lets you do business using your company’s operating name, which might be different from its registered legal name. Some states don’t require DBA licenses, but you should always check before trying to do business using a different name.

Other licenses you may need depend on your state and the nature of your business. For example, you may need additional licenses if you offer a childcare service. Your state may also require a food-handling license if you plan to sell food.

What Demographics Use Indoor Playgrounds?

While the primary focus of indoor playgrounds is kids, parents and young adults are also important demographics to target. Many parents let kids use indoor playgrounds when they need to perform other tasks, such as shopping or completing paperwork in a health care space. Parents may also use indoor playgrounds to bond with their kids or enable them to connect with their peers through the power of play.

Young adults are another portion of the demographic of indoor playground users. Many young adults use indoor playgrounds to locate and join a community of their peers. Some playgrounds are also starting to add gaming and virtual reality options, appealing to this older demographic.

How Do You Build an Indoor Playground?

The first step in building an indoor playground is to identify your niche. You can do so by looking up indoor playgrounds in your area to see what these locations are or aren’t doing. Use this information to create a unique theme and structure for your own indoor playground. After some initial research, you can start planning and creating your ideal indoor playground. Working with a knowledgeable playground designer can make the process easier.

Design an Indoor Play Area With Soft Play

If you’re considering opening an indoor playground, consider partnering with Soft Play. With decades of industry experience, we are a leader among indoor play area businesses and a reliable source for your playground needs. We offer both custom playscape design services and a selection of pre-made soft playground equipment. See what we can do for you by looking through our list of case studies.

Browse our broad range of products today and request a quote for a predesigned layout. If you’d like to know more about our custom services, contact us to speak with a local representative. We offer design consultations to help you get started with your project and bring your vision to life.

 

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