Market Analysis

Target Market

Within a 12-mile radius of our location there are over 336,700 residents between Cumberland County and Ft Bragg. The target market for a Barkade includes young adults aged 21-45 who are interested in gaming and socializing. This demographic accounts for a staggering 40% or 134,680 residents of Cumberland County and Ft. Bragg. We are very realistic and conservative in our projections estimating only 1 out of every 5 people that fit our target market will actually visit our Barcade. In North Carolina, this demographic is growing due to an increase in population and the presence of several universities and colleges in the area. Additionally, the state has a thriving craft beer scene, which is a popular beverage choice among this target market.

Competition

In North Carolina, there are several existing Barcade’s, including Stop Button 5.9 Miles away, Rec Room 36.1 Miles away, and Boxcar 59.2 Miles away. Our Barkade will differentiate itself by offering a wider selection of games and a more extensive craft beer list in collaboration with off-site food truck vendors. We will also focus on creating a welcoming and friendly environment for all customers, regardless of their level of experience.

Industry Trends

The Barkade industry is growing across the country, with new venues opening regularly in major cities. This growth is driven by the popularity of retro gaming culture and the desire for unique social experiences. Additionally, advancements in technology have led to new gaming experiences and increased interest in esports. According to the Census Bureau the average adult within our demographic attends an Arcade 5 times a year and a Bar 12 times a year. Working under conservative means we project the average customer will visit ourBarkade3 times a year.

Demand

The demand for Barcade’s in North Carolina is growing, as evidenced by the success of existing Barcade’s and the increasing popularity of gaming culture. Summarizing data from the US Industry Report for Arcade and Bar services, there was a steady growth rate of new business ownership of 2.7% yearly prior to COVID-19. Unfortunately, during peak COVID-19 concerns there was a downward spike in these businesses resulting in numerous foreclosures. However, with positive upward growth treading back to prior COVID-19 years there is a massive influx of interest in this market with the lowest number of competitors in over a decade. US Industry Reports show successful new business ventures averaging 30% profit margins. Data supports this industry will continue to grow with the rate of the economy securing its position as a mature quality growth industry. Additionally, the state attracts a significant number of tourists, many of whom may be interested in visiting a Barkade during their stay.

Regulatory Environment

Barcade’s in North Carolina are subject to state and local regulations related to liquor licensing, beverage service, health and safety, zoning, and outdoor seating. We are working to build strong relationships with local ABC officials, Chamber of Commerce, Economic Development and City Council. It is important to ensure compliance with these regulations to prevent any legal issues that could impact the success of the business. Therefore, we have secured a local legal team of attorneys to mitigate any potential concerns.
The Barkade market analysis shows that Barcade’s are a growing trend in the entertainment industry. The Barkade concept combines the appeal of classic arcade games with the social atmosphere of a bar, providing a unique and engaging experience for customers.

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