The Press Bar lot
Introduction:
Our real estate team seeks to build an arcade located downtown St. Cloud, MN. We believe that the addition of a sit-down restaurant with gaming elements would set itself apart from the current dining options offered in the area. St. Cloud’s demographics are strong for this type of business, with most of the area being under the age of 34. This is due to the large college population, many that already frequent the downtown area. There is only one direct competitor in the area, but our team believes that an arcade that models its business towards adults would set it apart from that competition and create a separate market segment.
Definition of Problem/Property:
The property we were looking to build would be the former location of The Press Bar downtown St. Cloud, MN. The address of The Press Bar lot is 502 W St Germain St, St Cloud, MN 56301.This property is currently not publicly available but will need to be addressed in the future once current issues are resolved. This property once contained a building that housed two floors, which would be ideal for the arcade setting. This would allow for room for both the restaurant and the arcade. The location would be near other businesses that bring in many clients at night, such as the Red Carpet, which is located next door to the property. Following other arcades policies and closing to minors at night would be beneficial in adding it to the late-night entertainment already offered downtown.
Describe Customer & Competition – Applicability & Feasibility:
| Strengths
· College town crowd · Young population · Strong foot traffic area · |
Weaknesses
· Declining gaming interests · “College season” cycle · Many competing restaurants · |
| Opportunities
· College partnership/ affiliation · Changing and updating the surrounding area |
Threats
· Local competitor (Chuck E Cheese) · Nearby entertainment options · Raising costs in electronics |
Market research
Customer:
- Who will buy/lease/use your development?
Family and children. Families can use arcade gaming as a bonding experience whilst young kids can use it as a way to spend their disposable income and spend time with friends. The arcade/restaurant quality will cater to many customers, including students from St Cloud State who just want a good place to chill. Visitors and Tourists can also go there. Finally, working citizens can go there to blow off steam after a long day at work.
- Use demographic and census research to tell the story of your prospects in the area.
According to data from census.gov, Households make up about 26000 of the total population. Also, 12.9% of the total population is made up of persons under the age of 18, and these details give up hope when it comes to actually gain some business in the area through our targeted market.
- Where are they coming from?
Customers are coming from the neighbourhoods near the downtown St Cloud area. They will also be coming from St Cloud State University, which is only a few minutes away from the area. Customers will also come from nearby cities like Sartell, Sauk Rapids, and Monticello. Visitors from Minneapolis or other states like Wisconsin and North Dakota may drop by.
- What is important to your customer, and how does that impact your development?
Customers care about having a good time in a fun and exciting environment. This means having a nicely decorated place with all the necessary machinery. They also care about having good food and beverages at a family restaurant and being in a safe environment. They also care about winning prizes.
- Discuss amenities you will include in your development to meet customer care.
- Vibrant lighting to create a fun atmosphere
- Restructuring set up to ensure there is a spacious area for the large numbers of people coming in
- Restaurant providing a wide range of menu items
- How will you market to your customers?
Marketing will include posting flyers around St Cloud State University to encourage students to come and check out the place. Social media can also be a great tool for marketing. Sending coupons and invitations to nearby residents can help people know about the new arcade.
Competition: “Chuck E. Cheese”
The biggest competition will be Chuck E. Cheese, which is a company that deals with family entertainment. The company was established in 1977, meaning it has been in the market for the longest time, making it popular among the locals(Edwards, 2017). Concerning its headquarters, it is located in Irving, Texas, meaning it is not far from downtown St. Cloud, MN, where our real estate team seeks to develop the arcade. That, therefore, makes competition stiff as it will mean sharing the already existing customers as our company finds new ways to attract new customers. The Chuck E. Cheese charges $5.99 for kids’ entry and $7.99 for adults and $10.00 for thirty minutes of unlimited games(Edwards, 2017). With such information, our company will subsidize these prices to entice customers and hence reduce competition.
The competitive advantage of our company is that it will offer late-night entertainment which the competition does not provide. That will mean that adults will be entertained without having to be in the company of their children after having fun with them during the day in the same space.
Development Proposal/Conclusion:
We plan to build an arcade in the lot where The Press Bar used to be at 502 W St Germain St, St Cloud, MN 56301. We believe that this would provide more entertainment in St.Cloud for all age groups. Right now, downtown is mostly filled with bars and restaurants that many college students utilize, so we wanted to bring in something more to add to that. This would bring more families to the area and give more opportunities for people.
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