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Bowling Centers
First Research, May 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US bowling center industry includes about 4,000 centers with combined annual revenue of about $3 billion. Major companies include Brunswick Corporation, AMF Bowling Worldwide, and Bowl America. The industry is fragmented: the top 50 companies generate about 30 percent of sales.
COMPETITIVE LANDSCAPE
Demographics, personal income, and leisure time drive demand. The profitability of individual companies depends on the ability to drive traffic and provide a superior customer experience. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by serving a local market or offering a unique experience. The industry is very labor-intensive: average annual revenue per worker is about $40,000.
Bowling is both a competitive sport and recreational entertainment. As such, bowling competes with other leisure time activities, like sports, hobbies, and electronic media (movies and TV).
PRODUCTS, OPERATIONS & TECHNOLOGY
Bowling centers generate over 60 percent of revenue from lane usage fees and over 30 percent from food and beverage sales. The remainder of revenue includes equipment rental, bowling merchandise, and receipts from video games, slot machines, and billiard tables. Bowling centers may have on-site snack bars, restaurants, or cocktail lounges. Larger centers may provide child-care, as well as meeting and party rooms. Most centers offer organized competitive bowling through leagues as well as recreational bowling or open play.
Specialty forms of bowling include sport bowling, novelty bowling, and bumper bowling. In sport bowling, carefully controlled lane conditions emphasize a bowler’s specific skills....
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