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Would a gaming cafe be a lucrative investment?
My buddy wants to open up a gaming cafe, that's pretty much like the ones we used to go to back in the early 2000s. He already has a prime location in mind, and is looking into the logistics. Is it worth it in this genre?
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Pierce Dalton Aug 3, 2023 @ 9:35am 
No, I don't think so. Nowadays people can play various free games on their phones and that killed this kind of business.
Goldias Aug 3, 2023 @ 9:37am 
No, it's a dead business.
Unless he can travel back to 1997 or earlier.
MoonC A T Aug 3, 2023 @ 9:37am 
IMO People pretty much have the hardware they need at home.

Taken from a 2023 article, so relevant...


Pros Of A Gaming Cafe

Rewarding work

Starting a gaming cafe can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a gaming cafe. This could be the start of an incredible business opportunity!

Daily physical activity

Gaming Cafe's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the gaming cafe comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a gaming cafe, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a gaming cafe is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

Location is everything!

When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!

Face to face interaction

If you are the type of individual that thrives on human interaction, then this is the business for you! With a gaming cafe, you will be hands-on with customers and or employees every day.

Simple business model

A gaming cafe has the advantage of a simple business model, which makes launching and building the business more seamless.

You get to do something you truly love

With starting a gaming cafe, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

Easy to Learn The Business

When starting your gaming cafe, there is a ton of information readily available to you online (Facebook groups, Youtube videos, Starter Story etc). This will help you get the business started and answer any questions, doubts or concerns you may have.

Never a dull moment

With starting a gaming cafe, there is truly never a dull moment. Your job offers a lot of variety and allows you to meet interesting people from all walks of life.

CONS

Competition is high when it comes to your gaming cafe, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your gaming cafe are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the gaming cafe, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a gaming cafe, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

High overhead expenses

With starting a gaming cafe, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Time commitment

With starting a gaming cafe, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

More of a challenge to run your business from home!

Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a gaming cafe, you are more likely to run your business out of your office or storefront space.
Originally posted by Pierce Dalton:
No, I don't think so. Nowadays people can play various free games on their phones and that killed this kind of business.
By that logic Steam wouldn't being selling any games either.

Free games suck.
Last edited by Abaddon the Despoiler; Aug 3, 2023 @ 9:40am
Xero_Daxter Aug 3, 2023 @ 9:39am 
I did go to a gaming cafe called “Gamers Edge” but I believe it went out of business since and was replaced by now a clothing store. At the time it was 5 dollars an hour.
eram Aug 3, 2023 @ 9:39am 
£5.80 for a portion of chips at my local chippy

gaming yes
cafe no
MoonC A T Aug 3, 2023 @ 9:40am 
Originally posted by Abaddon the Despoiler:
Originally posted by Pierce Dalton:
No, I don't think so. Nowadays people can play various free games on their phones and that killed this kind of business.
By that logic Steam wouldn't being selling any games either.
Well, no, Steam is not a physical location.
Pierce Dalton Aug 3, 2023 @ 9:41am 
Originally posted by Abaddon the Despoiler:
Originally posted by Pierce Dalton:
No, I don't think so. Nowadays people can play various free games on their phones and that killed this kind of business.
By that logic Steam wouldn't being selling any games either.

I'm talking about people that don't have a gaming PC, evidently.

What would you do: install a free game on your phone or go to a gaming cafe?
talemore Aug 3, 2023 @ 9:42am 
omg you are lost if u ask steam for advice

when u say cafe i expect it to be a fast food resturant where it's impossible to get a cup of coffee.

so if u going to have one it need board game community. and these cafe they were places for the rich to socialize after they had put the factory on auto. Question how many people u know and if they would want to spend their time there.

if u going to make it to mcdonalds then i can go to mcdonalds. how are anyone here telling u.
people still buy pre purchase just telling how some think they going to win a price in stupidity
Originally posted by MoonC A T:
Originally posted by Abaddon the Despoiler:
By that logic Steam wouldn't being selling any games either.
Well, no, Steam is not a physical location.
My point is that free games haven't killed anything. A lot of people won't touch them. A lot of people still play WoW and that has a monthly sub after buying the game.
Auckes Aug 3, 2023 @ 9:43am 
If a new Pandemics like covid comes, it is so going to end his career (and bank account balance). Same applies for Gyms. And any old-fashioned enterprise, in which gatherings of people perform activities.
Originally posted by Pierce Dalton:
Originally posted by Abaddon the Despoiler:
By that logic Steam wouldn't being selling any games either.

I'm talking about people that don't have a gaming PC, evidently.

What would you do: install a free game on your phone or go to a gaming cafe?
Gaming cafe if I had no PC. Why would I want to play some crappy free game on a tiny screen?
Xero_Daxter Aug 3, 2023 @ 9:44am 
The gaming cafe at the time for me was only filled with consoles. Of course you can play on your account but it’s wise to always log off.

Good memories tho. I actually participated in a Super Smash Brothers Brawl Tournament on the Wii.
Pierce Dalton Aug 3, 2023 @ 9:46am 
Originally posted by Abaddon the Despoiler:
Originally posted by Pierce Dalton:

I'm talking about people that don't have a gaming PC, evidently.

What would you do: install a free game on your phone or go to a gaming cafe?
Gaming cafe if I had no PC. Why would I want to play some crappy free game on a tiny screen?

I don't know, you would have to ask the thousands of people choosing that option.
eram Aug 3, 2023 @ 9:46am 
Originally posted by Xero_Daxter:
The gaming cafe at the time for me was only filled with consoles. Of course you can play on your account but it’s wise to always log off.

Good memories tho. I actually participated in a Super Smash Brothers Brawl Tournament on the Wii.
gaming cafe for me was only pc and most of them were playing counter strike 1.3
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All Discussions > Steam Forums > Off Topic > Topic Details
Date Posted: Aug 3, 2023 @ 9:31am
Posts: 30