CASE STUDY

ARCADE MODERNIZATION:
Rose Bowl Newcastle, Indiana

Rosebowl was a traditional bowling center that invested in modernizing their arcade.

OUR PLAN

John Nelson acquired Rosebowl, a traditional bowling center in Newcastle Indiana, a small town outside of Indianapolis. John hired Pinnacle to guide his decision on where to invest in capital improvements. After studying the market, it was clear that the there was room for improvement but not enough of a market for a major modernization that could require over $1 million in investment.

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EXECUTION

We decided to improve the arcade significantly but conservatively. John purchased new carpet, painted the space, and removed a wall which allowed visibility to the arcade from the front entrance. We kept five of his existing games and purchased 27 new games, added a card system, and installed new slat wall and fixtures in the redemption counter.

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RESULTS

The new arcade tripled the revenue of the old arcade and added 10% to the bowling revenue in the first year. The investment was about $250,000 and had a little under a 2 year payback. This project is a good example that a significant but right sized investment can be very profitable even in smaller market with modest average incomes.

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