If you want to start children‘s indoor playground business, whether it is to open an indoor play cafe or a play center in a shopping mall, the first thing you want to know is the cost of this business. However, the cost of an indoor playground cannot be quickly explained. It includes venue rental, equipment cost, labor cost, insurance cost, installation cost, etc. In this article, I will use classic indoor playground business contries such as the United States, Canada and India as examples to list the costs to build an indoor playgrounds in the countries.
The united states
Site-related costs
Rent: In the bustling business districts of major cities such as New York and Los Angeles, the monthly rent per square foot may be as high as $30-50. If the site area is 3,000 square feet, the monthly rent is about $90,000-150,000. In some small and medium-sized cities or non-core areas in the Midwest, the monthly rent per square foot may be as low as $5-10. The monthly rent for the same area of the site is about $15,000-30,000.
Decoration cost: Basic decoration includes wall treatment, floor paving, ceiling decoration, etc., and the cost per square foot may be $20-30. If you want to create a special theme, such as an ocean theme or a fairy tale theme, it involves customized props, special effects lighting, etc., and the cost per square foot may rise to $50-100 or even higher.
Equipment procurement costs
Amusement facilities: A set of basic play equipment such as small slides, climbing frames, ball pools, etc. may cost $30,000-50,000. If you add large-scale combination amusement equipment, electric toys, virtual reality amusement facilities, etc., the cost may be $100,000-300,000.
Other facilities: A large-screen TV is used to play entertainment programs or safety tips. A 55-inch smart TV costs about $500-1000. The sound system includes speakers, amplifiers, mixers, etc. A basic sound system may cost $3000-5000.
Running cost
Labor costs: The manager is responsible for overall operation management, and the monthly salary may be $8000-12000. The cashier is responsible for ticket sales, collection, etc., with an hourly wage of about $10-15. Based on working 8 hours a day and 22 days a month, the monthly salary is about $1760-2640.
Utility costs: Cooling in summer and heating in winter are the main electricity and gas consumption items. The monthly electricity bill may be $800-1500, and the natural gas bill may be $200-500. In addition, lighting, equipment operation, etc. will also incur certain electricity bills, about $200-300 per month.
Equipment maintenance and updates: Regular inspection, maintenance and repair of amusement facilities are key to ensuring safety and normal operation. Reserve $2,000-5,000 per month for equipment maintenance and updates.
Marketing and promotion costs: Social media advertising can be placed on platforms such as Facebook and Instagram, and the monthly cost may be $1,000-3,000. Offline advertising, such as posting posters and handing out flyers in surrounding communities, schools, and shopping malls, may cost $500-1,000 per month.
Safety and insurance costs
Safety facilities and measures: Safety nets are used to prevent children from falling from heights. Depending on the size of the area, the price may be $5,000-10,000. Soft mats are laid on the ground to cushion the impact of children falling, and the price per square foot is about $5-10.
Liability insurance: The cost of liability insurance depends on factors such as the area of the venue, the type of amusement facilities, and the expected passenger flow. The annual insurance cost may be $5,000-15,000.
Other costs
Required permits and licenses: The application fee for a certification certificate may be between $1,000 and $3,000. The cost of a construction permit may be between $2,000 and $5,000, depending on the size and complexity of the project.
Pre-opening market research, legal advice, and other costs: Market research can be conducted by entrusting a professional organization or conducting questionnaires and interviews on your own, and the cost may be between $5,000 and $10,000. Legal advice is used to review contracts, understand relevant laws and regulations, etc., and the cost may be between $3,000 and $5,000.
Installation cost: The daily cost of an installer is around $150-300. If the project is high-skilled and difficult, the daily cost may exceed $30
Canada
Site-related costs
Rent: In Canada, rent ranges from $3,000 to $15,000 or more, it is depends on the city and site size. In large cities such as Toronto and Vancouver, rents cost are higher than small cities.
Decoration costs: Including customized decoration and normal site renovations, the costis from $50,000 to $200,000.
Equipment cost: Normally customer all over the world is buying playground equipment form china, the cost of equipment is same with united states.
Operational costs
Labor costs: Annual employee wages is from $30,000 to $100,000.
Utilities: Monthly utility bills is from $500 to $2,000.
Marketing and promotion costs: $5,000 to $20,000 can be set aside for initial marketing campaigns, and $500 to $2,000 per month for ongoing marketing.
Safety and insurance costs
Safety facilities and measures cost: From $10,000 to $30,000.
Liability insurance cost: Annual liability insurance costs range from $2,000 to $10,000.
Other costs
licenses: Costs range from $500 to $5,000.
Furniture and office supplies: Costs range from $5,000 to $20,000.
Technology and software: Costs range from $1,000 to $5,000.
Installation cost: The daily cost of an installer is around 150-300 Canadian dollars. If the project is high-tech and difficult, the daily cost may exceed 300 Canadian dollars.
India
Site-related costs
Rent: In India, the rent for commercial areas in big city areas such as Mumbai and Delhi is from 500-1000 rupees per square meter; while in some second-tier cities or remote areas, the monthly rent may be 200-500 rupees per square meter. If the site area is 500 square meters, the monthly rent in a busy area may be 250,000-500,000 rupees, and the monthly rent in a remote area may be 100,000-250,000 rupees. In addition, a certain deposit may be required, usually 1-3 months' rent.
Equipment: Same.
Decoration cost
Simple decoration may cost 800-1500 rupees per square meter, mainly including basic decoration such as wall treatment and floor paving. Medium decoration may cost 1500-3000 rupees per square meter, and some special decorations and theme elements will be added. High-end decoration may cost more than 3000 rupees per square meter, focusing on design and quality. Assuming a 500 square meter venue, the cost of simple decoration is about 400,000-750,000 rupees, the cost of medium decoration is about 750,000-1.5 million rupees, and the cost of high-end decoration is about 1.5 million rupees or more.
Running cost
Employee salary: Indoor playgrounds need to recruit managers, cashiers, security guards, cleaners, etc. In India, employee salary levels vary by region and experience. Generally speaking, you may need to pay 200,000-500,000 rupees per month.
Marketing expenses: With advertising, promotional activities, etc., need to cost 50,000 to 150,000 rupees per month.
Facility maintenance costs: regular inspection, repair and maintenance of amusement facilities may cost 30,000 to 80,000 rupees per month.
Certificate processing
Opening an indoor amusement park in India generally requires a store license, fire license, etc., and the cost of certificate processing is about 50,000 to 100,000 rupees.
Other cost
Market research before opening, personnel training costs, and office supplies and consumables procurement costs during operation, these costs are about 100,000 to 200,000 rupees.
Installation cost: The daily cost of an installer is around 2,000-3,000 rupees. If the project is high-tech and difficult to work on, the daily cost may exceed 3,000 rupees.
The above costs are the average costs in these countries. If you want to start your indoor play area business now, please contact us and let our business manager give you a more detailed business plan and costs.
