Retail Market Potential
Watch out video games, a new (or old) contender in back in town. The market for board games (not just MonopolyTM and ScrabbleTM any more) has exploded in recent years. The technological age has created a renaissance for this classic form of entertainment and sales have never been bigger. Amazon reported that the percentage of board game sales increased by double digits from 2012 to 2013. In 2013 the online crowd funding service Kickstarter reported raising $52.1 million dollars for board games ($6.8 million more than raised for video games. The popularity of board games is still increasing and these trends are expected to continue.
A business that is ready to capitalize on this rapidly expanding market is a board game café. A board game café is a combination a traditional café/bistro (drinks and light snacks), a cozy lounge area to play games and retail space for selling board games.
Target Market Analysis
For this site location analysis three market characteristics were examined. The target age group for the board game café is ages 10-39. We plan to have the café open to everyone during the day and then switch to 19+ patronage in the evening. The target population ratio was calculated by dividing population ages 10-39 by total population. We would like to target the store in an area with high proportions of this population group.
The café will also feature food, beverages and alcohol. To target this market we analyzed spending on food in restaurants. This was calculate by dividing spending on food in restaurants by total spending on food. We would like to target areas where spending on food in restaurants is elevated.
The café will also serve alcohol and hopes to be a hot spot for board gamers who enjoy the social aspect of going out for the night while still enjoying games with friends. To find this market we looked for areas where spending on drinks at establishments is high. This was calculated as the ratio of spending on alcohol in restaurants over total spending on alcohol. We would like to target the café in an area where there is elevated spending on alcohol at restaurants.