It is no secret that bowling is a common entertainment among many people. You probably know that; hence, you want to take advantage of its huge fan base to make a living. However, before considering this investment, you must figure out its costs.
So, do you want to know how much building a bowling alley costs? If nodding, keep reading to find out and to learn more about it.
1. Average Cost
On average, building a bowling alley can cost about $3,000,000. Interestingly, depending on various factors, including the available amenities, its cost can exceed $5,000,000.
Remember that the contractor fees are often 25% of the total budget, whereas architectural fees can take up to 7% of your budget.
There is also a slight difference between the cost of union labor and an open-shop bowling alley.
According to the RSMeans Data Construction Estimate Software, building a union labor bowling alley can cost up to $119.75 for every square foot. That decreases to $112.48 per square foot for an open shop. If you add the contractor and architectural fees, the price per square foot increases to $160.17 and $150.44. Consequently, the bigger the size, the more the cost.
Ongoing Expenses Surpass Initial Investment
I can say that the ongoing operational costs can be significantly higher than the initial construction costs. First and foremost, constructing a bowling alley is a major investment.
The cost of purchasing land, building materials, equipment, and hiring contractors can easily reach hundreds of thousands or even millions of dollars. Once the construction is complete and the business starts operating, ongoing costs start to accumulate.
Several factors contribute to the ongoing operational costs of a bowling alley. Some of these include utility bills, maintenance and repair expenses, employee salaries, marketing and advertising fees, insurance premiums, and inventory costs.
These expenses can quickly add up and significantly impact the profitability of the business. Unexpected expenses can also arise, such as emergency repairs, which can further increase the financial burden.
One of the most significant ongoing costs for a bowling alley is utility bills. With large spaces to heat or cool and multiple lanes with electronic scoring systems, electricity, and gas bills can be astronomical.
Proper insulation and energy-efficient equipment can help reduce these costs, but they still remain a major expense. Another expense that can catch many bowling alley owners off guard is maintenance and repair costs.
Bowling equipment, such as pins, lanes, and ball returns, require regular upkeep to ensure they are in good working condition. These costs can be unpredictable and add up throughout the year.
Brian Rudderow, Real Estate Investor,ย HBR Colorado
Maintenance and Technology Drive Costs
From my venture into the entertainment sector, particularly with a bowling alley, I learned that operational costs can overshadow initial construction expenses, primarily due to maintenance, technology updates, and energy consumption.
One unforeseen aspect was the cost of keeping the lanes and machinery in top condition, which is critical for customer satisfaction but can be surprisingly high.
Itโs crucial to budget for these ongoing expenses and invest in energy-efficient designs and modern equipment to mitigate long-term costs.
Erik Wright, CEO,ย New Horizon Home Buyers
2. Factors Affecting the Cost of Building a Bowling
The cost differs from one project to another due to various factors. Some of the determining factors include the following;
2.1. The Design of the Lanes
The lane design of the bowling alley usually affects the total cost. One of the options is the butcher block, which is ideal if you want standard lanes. Along with it being a durable material, it is also quite cheap.
On the other hand, you can opt for the expensive alternatives. Besides being elaborate, their designs have eye-catching features such as graphics that glow in the dark and custom colors. As you choose the lane design, remember their significant role in attracting and exciting customers.
Equally important, donโt overlook the lane oiling machines. Ensure your choice is effective enough to ensure the bowling balls move smoothly. The playing experience often relies on this, hence the need to choose wisely.
2.2. Number of Lanes
The bowling lanes your alley will have will determine the cost. On average, a single bowling lane costs $90000, whereas constructing two lanes costs about $120000. If you want a bowling alley with up to 12 lanes, the cost often ranges from $1,080,000 to $1,440,000.
The more lanes there are, the bigger the space you need to build the bowling alley. For example, 24 lanes will require 19200 square feet, whereas its 12-lane counterpart can use up to 9600 square feet. The bigger the land you buy or lease, the more you spend. Again, this fact will determine your final cost.
Besides the size of the land, the number of bowling lanes also determines the staff members the facility needs. 4 people are enough to run a 12-lane bowling alley, whereas that number doubles if the alley has 24 bowling lanes.
2.3. Available Bowling Equipment
A bowling alley requires equipment like balls, pins, and lanes. There are also other accessories, including bowling footwear.
The equipment and brand you settle for determine the cost of building a bowling alley. If you choose the ones that use advanced technology, you will most likely need more money. Fortunately, thanks to their impressive longevity and functionality, they are usually worth every penny.
When people are buying bowling equipment, they often overlook the maintenance costs. Some items may be cheap to buy but expensive to maintain, and vice versa. So, choose wisely to avoid incurring more costs along the way.
Eco-Friendly Bowling Lanes: Sustainability and Style
- Material Selection:ย When choosing materials for bowling lanes, itโs crucial to consider their longevity and environmental impact. Sustainable materials with high wear resistance, such as bamboo or recycled wood, can provide an eco-friendly option and a visually appealing texture that resonates with modern design trends. Using non-toxic, low-VOC finishes for areas surrounding the lanes can enhance indoor air quality while contributing to the alleyโs overall aesthetic.
- Lane Design:ย The lane design should reflect the establishmentโs branding and enhance the playerโs experience. LED lighting under transparent or translucent lane materials can create an immersive atmosphere without compromising the laneโs integrity. Additionally, customizable digital displays integrated into the lane design can offer a functional and futuristic element, aligning with the alleyโs dynamic environment.
- Aesthetics and Durability:ย Balancing aesthetics with durability is paramount. Selecting striking materials capable of withstanding the constant impact of bowling balls ensures the alleyโs visual appeal endures over time. For instance, high-pressure laminates can mimic various textures and colors for personalized lane designs while offering the necessary durability.
- Sustainability Perspective:ย From a sustainability standpoint, considering the lifecycle of materials is vital. Opting for materials with a lower environmental footprint and that are recyclable or sourced from sustainable practices aligns with our ethos at London Gardeners. This approach benefits the environment and resonates with eco-conscious patrons, enhancing the venueโs reputation.
Samuel Davis, CEO,ย London Gardeners
2.4. Size
The size of your bowling alley will determine the cost of building it due to various factors. For instance, the bigger the bowling alley, the more you need to buy the required hardware. The same applies to the money you need to buy or lease the land or maintain your alley.
Since small bowling alleys need less resources and space, they are usually cheaper to build than the big ones. It also means that the initial cost of starting one is relatively low.
2.5. Location
Whereas the location you choose determines the customer base your bowling alley can attract, looking at the bigger picture is crucial. Due to its huge demand, a happening location may be relatively expensive. Consequently, building a bowling alley in such a place may demand more money.
Key Considerations for Bowling Alley Investments
While working with IPA Commercial Real Estate, specializing in retail and office properties, Iโve accumulated extensive experience that directly translates to the evaluation and development of entertainment ventures like bowling alleys.
Location, size, amenities, and associated costs are critical factors in the success of such investments. For instance, weโve learned that areas with high foot traffic and favorable demographics, such as families and young adults looking for leisure activities, are prime locations for a bowling alley.
Zoning regulations are also a key consideration to ensure that the intended use is permitted within the area, avoiding potential legal hurdles.
In terms of size, a balance is necessary. Our project management experiences have shown that too large a space can inflate operating costs without increasing revenue proportionately, whereas too small a venue may not meet customer demand or offer enough amenities to be competitive.
Essential amenities that have proven popularโbased on our clientโs success storiesโinclude a variety of food and beverage options, arcade games, and party rooms, which can all serve as additional revenue streams beyond bowling.
Cost analysis plays a pivotal role, an area where my background in acquisitions and value enhancements becomes invaluable.
A detailed feasibility study that we conducted for a retail client contemplating adding an entertainment section revealed that while initial investment and ongoing expenses in enhanced amenities (like state-of-the-art scoring systems and lane maintenance) can be significant, they contribute to a more engaging customer experience, driving repeat business and increasing profitability in the long run.
From these experiences, I can confidently say that investing in a bowling alley requires a comprehensive approach, taking into consideration the communityโs profile, the balance between size and available services, and the smart management of costs versus potential income.
The most successful clients at IPA are those who have leveraged our market knowledge and hands-on problem-solving approach to strategically position their entertainment venues to thrive.
Matt Morgan, California Real Estate Salesperson,ย IPA Commercial Real Estate
3. Additional Costs
It turns out that the cost of running a bowling alley goes beyond its construction. So, upon constructing one, expect these additional costs before opening it.
- Permits and licenses may take up to $1500 as their legal expenses
- If you hire a business consultant, you may pay the professional approximately $2500
- Various software, including payroll, CRM, and accounting packages, can cost about $3000
- The estimated budget for stationery and other start-up expenses is around $1000
- Bowling wares can use up to $40000 or even more
- The cost of marketing the bowling alley depends on your chosen method and the period the campaign will last.
- Various insurance premiums, including property casualty, general liability, and staff compensation, can be as high as over $30000
- Utility and phone deposits can take up about 3500
- Start-up inventory cost is usually $15000 on average
- Theming your bowling alley, the dรฉcor, graphics, video screens, music system, audio system, scoring monitors, lighting, other gadgets, and furniture can cost up to $80000.
- If you add a website, launching it can cost about $600
- You should also set about $5000 for miscellaneous
ROI and Payback Estimates with Revenue Data
The return on investment (ROI) and payback period for a bowling alley can vary depending on several factors, such as location, size, amenities offered, and overall management.
Generally speaking, the initial construction costs for a standard 16-lane bowling alley can range from $500,000 to $2 million. This includes the cost of land, building materials, equipment, and labor.
Additionally, ongoing operational expenses such as rent or mortgage payments, utilities, maintenance, insurance, and employee salaries can amount to an average of $30,000 to $60,000 per month.
However, on the other hand, a well-managed bowling alley with a steady flow of customers and efficient cost management can generate an average annual revenue of $300,000 to $700,000.
Based on these figures, the typical return on investment for a bowling alley can range from five to ten years, with a payback period of approximately two to five years.
It is important to note that these numbers are estimates and can vary depending on individual circumstances and market conditions.
Proper financial planning and strategic marketing efforts can also play a crucial role in maximizing ROI and shortening the payback period for a bowling alley.
Krixelle Sant, Founder & CEO,ย Sell My House Fast For Cash
Size and Location Affect Bowling Profits
The financial success of a bowling alley is heavily influenced by its size and location. Larger alleys with more lanes can serve more customers, leading to higher revenue.
Additionally, bowling alleys in key locations, such as busy cities or near entertainment centers, usually see more customers and make more money.
In terms of return on investment (ROI), bowling businesses generally see a moderate to high ROI compared to other types of businesses.
On average, a bowling business could have an ROI between 15% and 25%. This means for each dollar invested, you might get up to 25 cents back every year.
Bowling alleys tend to make more profit in areas where families earn more than $100,000 annually. The main ways bowling alleys make money include fees for games or time spent bowling, food and beverage sales, hosting events, and selling merchandise.
If a bowling alley has extra features like arcade games and other entertainment, this can also help increase profits. Itโs also important to note that independent bowling alleys might make different profits compared to ones that are part of a franchise.
Independent alleys have more control over their prices and costs, which can affect their profit margins.
Paw Vej, Chief Operating Officer,ย Financer.com
Bottom Line
It is hard to figure out how much building a bowling alley costs. After all, it depends on various factors, including the size, design, lanes, equipment, and location. If one of the factors changes, the necessary amount will most likely change too.
Guest Author: Saket Kumar
Last Updated on by Sathi
The article serves as a valuable guide for anyone considering the exciting but multifaceted journey of building and operating a bowling alley. It emphasizes the need for careful consideration of various factors and highlights the dynamic nature of costs in this niche. Kudos for shedding light on a venture that combines entertainment, investment, and community engagement!”