Entertainment concepts expand to meet growing appetite
May 17, 2023
- James Cook
- Ebere Anokute
- Heli Brecailo
- Keisha Virtue
- William Schneider
- Saul Lua
People just want to have fun...again. As the pandemic fades into the past, consumers are spending more on food and fun. A growing number of entertainment concepts are hoping to meet this demand.
- Entertainment spending is growing. In Q4 2022, spending on dining out in the U.S. grew by 13.7% year-over-year. Spending at amusement parks and arcades grew by 20.6% year-over-year.
- Entertainment concepts are opening new locations to meet that demand. We have identified 9.1 million square feet of new entertainment space slated to open in the U.S. and Canada within the next two years.
- Eatertainment concepts, which feature food, drink and multiple games under one roof, will open the most locations. Virtual Reality (VR) and Competitive Socializing (a single game along with food and drink) concepts have the second and third most openings planned.
- Economic obstacles may hinder planned growth. Many entertainment concepts are expensive to build; the biggest hurdle in negotiations between landlords and tenants is the amount of money the landlord will contribute in upfront construction dollars. Rising interest rates have limited the opportunities to profitably borrow when funding new construction.
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