The Right Location Is Half The Battle

A great arcade in the wrong location will not succeed. A large share of an entertainment venue’s revenue is determined by factors directly tied to location. In Israel, where rent and long-term investment are major costs, picking the right spot is the difference between a thriving business and one that struggles every month.

Population Size And Demographics

Ask yourself: who is your target audience? Families with school-age kids in your area? Teens and young adults 15–30? The demographics dictate the machine mix, your operating hours and your pricing.

Visit the area: how many families with children live nearby? How many offices with shift workers? These numbers feed directly into your projected revenue.

Foot Traffic And Counts

Foot traffic during peak hours (10:00–21:00) is what matters most. Visit the area at different times and count people walking past: Saturday morning shoppers, weekday lunch crowds, evening families. Those are your customers.

A site with good public transport and ample parking will pull far more visitors than a tucked-away location. Parents won’t drive in with kids if parking is a headache.

Competition Analysis

Before signing a lease, study the competition:

• Is there another entertainment venue in the same mall or area?
• If so, what is its occupancy and visitor satisfaction?
• Can you offer something distinctly different and better?

Competition is not necessarily bad — the presence of competitors usually means real demand exists in the area.

Space Requirements

A standard venue with 10–15 machines needs at least 200–250 sqm. A larger venue with 30–50 machines requires 500–800 sqm.

You need reasonable spacing and atmosphere between machines. Cramming creates a stressful feel and drives customers away.

Lease Terms

Key items to negotiate:

• Rent structure: per square meter or as a percentage of revenue. Understand what is and isn’t included.
• Lease length: 3–5 years is ideal. Build in an exit clause if revenue underperforms.
• Flexibility: Will the landlord allow tournaments and special events? That flexibility unlocks significant additional revenue.

Common Mistakes In Israel

Successful entertainment venues in Israel sit inside shopping centers, near dense residential neighborhoods or in young, active districts. Avoid pure office areas and pick locations with real, sustained foot traffic.