The ultimate guide to choosing in-house entertainment for your hospitality venue

Jason Dydynski -

Whether you own a bar, a nightclub, a restaurant, a hotel, family entertainment venue, or any other hospitality venue, you should always want to capitalize on your success and supplement your existing revenue streams to increase your overall profits.

To do this efficiently and effectively, you need to ensure that guests are coming back more often and staying for longer periods. You need to tap into greater opportunities for competitive socializing.

This guide will go over set-up costs, requirements, earning potential, and pros and cons of a various entertainment types:

What is competitive socializing?

As you may have noticed in recent years, competitive socializing opportunities have become a popular trend among friendship circles – especially those looking to make the most of a typical night out in their small town. For those who don’t know, competitive socializing involves high-energy activities such as table games, darts, karaoke… basically, any type of interactive gaming with an inherent element of high or low-stakes competition between friends – all of which typically takes place within a dining or hospitality setting with food and drinks.

Great examples of competitive socializing can be easily implemented in your venue, usually with low overhead costs. Get a sense of what your regular customers might like and consider integrating the activity into your everyday routine – maybe try it out for the first time on a slower mid-week shift and see how customers engage with it.

If the customers are regulars, do they stay for longer or spend more money while playing darts (for example) than they did when there was no dartboard? Competitive socializing is a growing trend that has been show to improve the performance of business as well. One that can get your business growing, too.

Learn more about the business impacts of competitive socializing here.

10 best competitive socializing activities

1. Private karaoke rooms

Who doesn’t love karaoke? It’s an engaging and unique pastime that allows people to truly unwind and be their most uninhibited and ridiculous selves, while also creating lasting memories and establishing and strengthening friendships. Karaoke bars and restaurants offer enthusiasts a judgment-free environment in which to let loose, chow down, and sing, often turning a low-traffic night of the week into a widely popular local event.

From a business perspective, the pre-book karaoke business model – wherein customers select and reserve their rooms while inputting their party size and the desired number of plays – allows bar and restaurant owners to anticipate how busy they expect to be on any given night, allowing them to bring in more or fewer staff members to cover shifts. And by adding a dedicated area for karaoke fans, you are opening your business up to a brand-new customer base – not to mention adding resale value to your space.

Learn more about karaoke rooms with our karaoke room business guide here.

Set-up costs and requirements: If you are simply adding karaoke equipment to an existing bar or restaurant venue, you will likely already have the video and sound setup. Programming software, like that available at Singa, can be relatively inexpensive, and so too are microphones and song catalogs. The biggest spends typically involve bigger and better speakers. However, if you want to add private booths and karaoke rooms, this can often cost around $5,000 to $25,000 to incorporate (mostly construction and renovation fees).

Earning potential: This depends entirely on your commitment to karaoke. Hosting karaoke nights at the venue once or twice a week can typically pull in an extra $5,000 to $10,000 per month. However, for spaces with dedicated karaoke rooms that customers can pre-book ahead of time, estimates can range from $20,000 to $30,000 extra profit per month – meaning that initial karaoke expenses (including installation) can pay for themselves very quickly.

You can get a better the potential earnings for your venue with our karaoke room profit calculator here.

Pros:

  • Remarkably versatile form of entertainment with plenty of concepts to choose from. Whether it's self-service karaoke, staff or KJ-run open mic, karaoke rooms, open-air karaoke, or karaoke event, there's an ideal concept to match your needs and goals.
  • Easy to scale. Self-service karaoke is a great way to monitor how it is received by your customers; if positive, you can slowly integrate larger-scale karaoke concepts into their bar or restaurant.
  • Food and alcohol sales often increase during karaoke nights, with average increases ranging from 20% to 40%.
  • With private karaoke rooms, the more comfortable a group of singers is, the more likely they are to stay for longer. This means longer room rental time, more food, and more drinks.

Cons:

  • While relatively low cost, private karaoke rooms for businesses that don’t have existing space is the most invasive option and may require some significant maneuvering and out-of-pocket expenses.
  • Self-service karaoke booths, or a dedicated self-service karaoke area, also often require additional costs in addition to software and speakers, including soundproofing.
  • The drawback to having too few self-service karaoke booths in your establishment is that, without proper marketing, customers might not notice they are there.

Best for: Depending on the size and the existing layout of your space, there are many different concepts that you can apply if adding some karaoke elements to your business. Whether you are thinking of turning your entire venue into a karaoke-themed bar or restaurant or building customized private karaoke rooms or self-service karaoke machines in your hotel entertainment center. Karaoke is one of the most versatile forms of competitive socializing and can work within any business model.

2. Arcade games

Another great example of competitive socializing, arcade games are heavily favored by groups looking to unwind together. What's more, the once-retro arcade destination has become an emerging add-on trend in many entertainment venues, including restaurants, bars, and movie theaters. Adding a designated arcade area that includes multiple competitive-style video gaming consoles to your venue is a great way to bring in more customers.

Set-up costs and requirements: You can find functional, retro arcade games just about anywhere – trade shows, antique markets, even on Amazon. Depending on how much you want to spend, you can outfit an arcade room in your venue for as little or as much as you wish.

Earning potential: Unless you outfit your venue with dozens of machines, you probably won’t experience tens of thousands of dollars’ worth of increased revenue from gaming alone. However, you will likely notice higher figures each week because you are creating an environment in which people, while enjoying their time fiddling with the joysticks, will stick around for longer, ordering more food and more drinks than they would without.

Pros:

  • Arcade games are incredibly popular and tap into the 80’s and 90’s nostalgia. They also require little operational overhead – just plug in and customers can figure out the rest.

Cons:

  • Arcade games, especially vintage machines, tend to break down and repair specialists might be challenging and expensive to source.
  • Non-stop running of these machines will drive up hydro and electricity bills.

Best for: Arcade game machines can be incorporated into any hospitality venue, but they tend to make the most sense in pubs, bars, and restaurants that carry that competitive socializing theme.

3. Bowling

Everything old is new again. Newer generations of customers are experiencing a love affair with nostalgia – and bowling is at the top of that list. Capitalizing on the trend of retro gaming, bowling is also a great example of competitive socializing. And if your space can accommodate the necessary adjustments, a bowling alley in your business will likely pay for itself in no time.

Set-up costs and requirements: Building a bowling alley in your existing space is costly. On average, you could be looking at an investment of $30,000 to $80,000, depending on the size of your space.

Earning potential: The potential for revenue of an entire bowling alley business is pretty lucrative. But again, depending on the number of lanes you want to add to your venue, a similar yield can be expected.

Pros:

  • Bowling is one of the few competitive pastimes that can be enjoyed by people young and old, and of varying proficiencies. Despite their immense popularity in years past, nowadays it’s been difficult to find bowling alleys in many major cities. A dedicated bowling alley in your business could potentially attract customers from far and wide.

Cons:

  • The costs associated with adding bowling lanes to your venue will likely cause the biggest headaches.
  • There are also legalities to consider, including slip-and-falls and other injuries.

Best for: To accommodate a few regulation-size bowling lanes, the best venue would likely be one with plenty of space, like a hotel or large-scale restaurant with a dedicated add-on room.

4. Table-games

Billiards, ping-pong, foosball…these table-top gaming fixtures have been a presence in bars for decades. And that’s because they are a relatively cheap addition that yields heavy engagement when positioned in the right venue. Picking up a paddle or a pool cue can turn any evening out into that much more fun.

Set-up costs and requirements: Billiards tables, on average, can go for anywhere from $1200 to $4000 – a drop in the bucket compared to the increased revenue you’ll see as a result of your investment. Ping pong tables or foosball tables can also be sourced online for relatively cheap (around $800 to $1000 on average). If you’ve got the space to fit one (or all), you’re set.

Earning potential: It’s hard to determine an exact figure for the kind of earning potential available from a tabletop add-on. But long-term is the name of the game. Taking any of the average costs listed above into consideration, the costs would pay for themselves in no time – and the resulting foot traffic for years to come make it a worthy investment.

Pros:

  • Table games are some of the most effective and least costly gaming add-ons you can include in any business. Logistically, they also take up the least amount of space.

Cons:

  • Pool tables in particular can become a liability due to the potential for injury. They can also be easily damaged, requiring costly repairs.

Best for: There are very few downsides to adding a tabletop gaming feature to any type of business. Some venues––especially those that serve food and alcohol––may encourage greater interest from customers than those where a pool table (for example) is sat stoically in a conference room, out of sight. Placement is everything.

5. Darts or Axe-throwing

The phenomenon of throwing things in a bar is nothing new. Darts have been a fixture in pubs for years, even spawning professional leagues. Axe-throwing is a relatively new and modern twist on this traditional pastime, and customers love the challenging twist. Adding a dartboard or an axe-throwing gallery to your space capitalizes on both. There is no a trend for AR darts as well.

Set-up costs and requirements: A dartboard can cost as little as $20––you’ll likely find no better deal to increase competitive socializing at your business. Axe-throwing, however, is a bigger investment that includes construction work and equipment installation. These can run you up to $50,000, on average. You do NOT want to skimp on the quality when it comes to throwing axes.

Earning potential: If even one new guest patronizes your establishment because of your new dartboard, then you'll likely make back your investment in less than an hour. Depending on the scale of your axe-throwing idea, there are several ways to tackle a building plan and each comes with its reward.

Pros:

  • You can find dartboards online for next to nothing. They are the most cost-effective gaming fixtures you can add to a venue.
  • Axe-throwing is incredibly popular; adding a gallery range to your place of business will attract customers from far and wide.

Cons:

  • Some might find the concept of serving people alcohol and then handing them a throwing axe to be pretty wild maybe even too dangerous. Accidents happen in just about any bar or restaurant environment, but the legalities around customer injuries from darts or axe-throwing should always be considered.
  • While certainly popular on its own, axe-throwing in a bar or restaurant is still a very niche pastime and it might not appeal to everyone – like those who are looking to have a girls’ night out. It might come across as too-testosterone-fuelled and word-of-mouth might do some damage.

Best for: As mentioned above, liquor and weapons aren’t always the best mix (did you know that axe-throwing injury lawyers are now a thing?). If you choose to incorporate an axe-throwing gallery into your venue, it might be best to dedicate the entire venue to axe-throwing so that everybody knows what to expect once they show up. Same with darts – darts in pubs are hugely popular: but keep the dartboards in a dedicated space near the bar to avoid any collateral damage from those patrons who are just trying to vibe.

6. Escape rooms

Escape rooms have never been more popular than they are right now, so audiences are always on the lookout for new adventures. Adding an escape room – or escape closet, depending on the size available – to your space is a timely and sound investment.

Set-up costs and requirements: Escape rooms are fairly easy to set up since most of the heavy work is done using ingenuity and teamwork. Literally turn an empty conference room in your hotel, or an unused storage closet in your bar or restaurant and add some problem-solving flourishes and décor that guests have to figure out. There are plenty of places online where you can learn how to make your own escape room with little to no additional costs.

Earning potential: You can potentially bring in a few extra thousand dollars each month, depending on the size and the quality of your escape room. If your space is good enough, the escape-room community will send plenty of business your way.

Pros:

  • Escape rooms are some of the most popular destinations for a night out. Their prevalence in the competitive socializing industry has skyrocketed in the last few years and shows no sign of slowing down. They are highly profitable when marketed properly.

Cons:

  • While relatively simple and cheap to build, adding an escape room might require additional business licensing and insurance.
  • Venue consideration is key: for example, an escape room in a bar could be considered risky as some guests might not be in the mood for a cerebral, fact-finding mission if they’ve just come in for a relaxing round of drinks.
  • Escape rooms often struggle to foster repeat customers as the replay value of solving the same puzzles can be limited. Thus, the concept or theme of the escape room needs to be refreshed regularly.

Best for: Escape rooms typically require a unique, large-form layout, so they might not be the best fit for a tiny dive bar – unless incorporating a dedicated add-on is feasible. Otherwise, a restaurant or hotel space with ample room would be the ideal venue.

7. Mini Golf

Camping has combined mini golf with competitive socializing to great effect.

Who doesn't love playing a few rounds at the local putt-putt? Minigolf is a versatile socializing activity that appeals to families, students, first-daters, and just everybody in between. However, it's not all windmills and brightly colored balls. Starting a mini golf business requires careful planning and attention to detail. If you are up for the challenge, you can stand to rake in a successful and steady income.

Set-up costs and requirements: One of the most ambitious business setups on our list, minigolf courses can be expensive – but the earning potential more than makes up for any major spending.

First things first: find the perfect location for your course – think accessible, visible, and spacious. Consider the theme of your course. Should it be pirate-themed? Or retro-inspired? Go with something that sets you apart from the competition.

With these early steps in place, you’ll want to move towards setting up a solid business plan that includes the size and scope of your course. Then, you’ll need to create a legal entity for your course and register with local tax agencies. Once you’ve applied for all the necessary permits and licenses, construction can begin –this can run as high as $250,000. After the ground-breaking has taken place, shop around for quality putting surfaces for your challenging obstacles, not to mention putters, balls, and décor, to keep players engaged and entertained.

If you’ve got a solid business plan in place, you can expect to earn a sizeable return on investment. Some companies even offer a revenue calculator to determine how potentially lucrative your minigolf business can be.

Earning potential: Minigolf courses are designed to be long-term investments. Once the appeal has presented itself to an audience, you’ll need to keep them continuously engaged. Marketing will be pivotal – social media platforms such as Instagram and TikTok can help generate buzz. And don’t forget customer service. Minigolf needs friendly and helpful staff on hand at all times, so be sure to train your staff to provide a memorable experience each and every time.

Pros:

  • Appealing to all age groups
  • Cheap to operate (minimal staffing)
  • Large profit margins/high ROIs

Cons:

  • Depending on the size of your planned course, costs can be high
  • Maintenance costs should also be factored in
  • Liability insurance may be stringent

Best for: Simple put, a minigolf course (inside or outside) is going to require a bit of room. Don’t try to squeeze in a 9-hole layout into a tiny space as this will likely hurt the overall design and potentially frustrate players. The more land you’ve got, the more creative you can get.

8. Laser Tag

Another throwback activity that is seeing a resurgence in popularity, laser tag was HUGE when it first hit the mainstream in the late 1990s. Since then, it has become a highly profitable and engaging business model in both urban and suburban markets. What’s more, it is also a thrilling and fast-paced activity that is perfect for parties, team-building events, and family outings. Before diving into this venture, there are several key things to consider.

Set-up costs and requirements: Location is also another crucial factor: look for an easily accessible area with ample parking space and enough room to set up an exciting laser tag arena. You'll need top-quality equipment such as laser guns, vests, obstacles, and a sophisticated scoring system to ensure an immersive experience for your customers.

  • Venue leasing or existing building extension (typically between 3,500 and 5,000 square feet)
  • Design and construction
  • Equipment (laser tag guns, suiting, décor)
  • Additional staff wages
  • Insurance, licenses, and permits

Earning potential: While the costs associated with a laser tag course may seem daunting, the earning potential is very high, if managed correctly. Marketing will play a significant role in attracting customers, so create an eye-catching website and explore digital advertising opportunities to spread the word about your new business. Additionally, think about offering different game options like team-based competitions or solo missions to cater to diverse customer preferences. Finally, exceptional customer service will set your business apart—train your staff on how to provide a fun and safe environment while ensuring that all participants have a memorable time playing laser tag at your establishment

Pros:

  • Appeals to customers of all ages. Unlike many activities, laser tag is mostly a high-volume game (birthdays, social outings, company team building)––high earning potential

Cons:

  • Overhead costs for building, licensing, insurance, and maintenance
  • The potential for accidents is much higher due to the nature of the game (liability insurance)

Best for: Depending on the architect or designer, laser tag courses are the most effective in a large-scale environment. Players need plenty of places to hide, so the bigger the better.

9. Virtual Reality

The future of VR was cool in the late 1990s – and it’s still cool now. Starting a virtual reality arcade combines the thrill of socializing with the extreme popularity of gaming all in one venue. More than just a headset with flashing lights, VR arcades provide an immersive experience for users, making it a perfect event idea for small or large groups.

Set-up costs and requirements: To kickstart your VR venture, it’s essential to do thorough market research and identify your target audience. From there, you can select the right location for your arcade, making sure it is easily accessible and has enough space to accommodate multiple play stations.

Investing in high-quality VR equipment and gaming software is crucial to provide customers with an unforgettable experience. Fortunately, while costs can climb very easily if you’re building a big enough venue, specialist retailers will likely give you a great deal on purchase packages. Additionally, ensuring that your employees are knowledgeable about the technology and are skilled in assisting customers will create a positive atmosphere that keeps patrons coming back for more.

Earning potential: Gaming has never been more popular, so a VR arcade is an incredibly timely business venture to undertake and it is still unique enough that you won’t be entering a saturated market. Charge by the hour (maybe $40 a session?) and factor in your overhead costs from there. And don't forget to establish competitive packages and create partnerships or collaborations with other local businesses or social media influencers to boost visibility. With a touch of innovation and a focus on customer satisfaction, your virtual reality arcade business has the potential to thrive in this rapidly evolving industry.

Pros:

  • Extremely popular with gamers, team-building groups, bachelor parties, and everything in between
  • Presents a chance to be a highly profitable and talked-about business that attracts customers from miles away

Cons:

  • As with any interactive venture, liability insurance can be costly
  • Additional costs can climb, especially your hydro/electricity bills

Best for: This is one of the few business ventures where a uniquely shaped venue is ideal. A big, flat open space can feel too boxy; too small a space can be restrictive.

10. Trampolining

Trampolining is a very competitive gymnastics activity that people spend years perfecting. It can also be a unique way to introduce fun and socializing to the masses. For anyone who has ever had the urge to give it a go on a trampoline, the potential for a lucrative business practice is definitely there.

Set-up costs and requirements: Because trampolining is such a niche activity, you’ll want to make sure to do thorough market research to identify potential demand in your area. Consider factors like location, target audience, and pricing (is there interest outside of athletes? How much are people willing to spend to jump around for an hour?).

Typically, trampolines are comparatively less expensive than many of the tools listed in the above scenarios. However, people jumping around in your business is a serious matter and should never be taken lightly––so you’ll really want to ensure you have high-quality equipment that meets industry standards and hire trained staff who can ensure a fun yet safe experience for customers (no shopping at Costco…specialist dealers and manufacturers only!)

Once you’ve got the stock, secure a suitable venue large enough to accommodate several trampolines while adhering to safety regulations. It's essential to invest in high-quality equipment that meets industry standards and hire trained staff who can ensure a fun yet safe experience for customers.

Earning potential: Because of the unique nature of a trampolining business (we’re not suggesting a trampoline gym – that’s not so lucrative), the earning potential is high for customers looking to engage in a one-of-a-kind weekend get-together with friends.  Marketing your business is key; use social media platforms and local advertising channels to spread the word about your trampoline haven. Additionally, offering party packages or teaming up with local schools or organizations can bring in consistent revenue streams. Always remember that customer satisfaction is paramount – maintaining a clean facility, excellent customer service, and an exciting atmosphere will keep patrons bouncing back for more.

Pros:

  • Completely unique; untapped market
  • Opportunity to double your income by operating as a gym, too (licensing permitted)

Cons:

  • Potential for injury is high; additional staff will be required––and they need to be certified safety practitioners
  • Liability insurance will likely be high
  • Drinking and jumping is not a good mix, so you may need to rethink your approach to serving alcohol

Best for: There doesn’t need to be a massive amount of space required to open or rebrand your space as a trampoline park. Obviously, you will need HIGH ceilings, which may be something to think about.

There you have it! Ten of the most unique and engaging family entertainment business ideas to bounce around. Once you’ve decided on a lucrative new career path, you can expect to see some happy customers and big returns in the family bank account.

There you have it! These are some of the most popular entertainment offerings for your venue. Of course you can combine more than one of these entertainment offerings together. But if you are looking to get started up with just one, this guide should give you a starting place.