How much does it cost to open an arcade?

An arcade costs $100,000 to $500,000 to open. A small retro arcade with 30-40 games in a modest space starts at $100,000. A modern family entertainment center with 60+ games, VR, redemption prizes, and food service runs $300,000 to $500,000. Game purchases are the largest expense at $1,000 to $8,000 per machine.

Are arcades still profitable?

Modern arcades and family entertainment centers are profitable when they offer experiences people cannot get at home. Revenue per game averages $100 to $300 per week. Birthday parties and group events generate $200 to $800 per event. Adding food, VR, and prize redemption creates multiple revenue streams. Successful arcades generate $500,000 to $2 million in annual revenue.

How many arcade games do I need?

A viable arcade needs 30 to 50 games minimum to feel full and offer variety. Mix classic games (Pac-Man, pinball), modern racing and shooting games, redemption prize games, and VR or interactive experiences. Redemption games where players win tickets for prizes typically generate the highest revenue per square foot.

Arcade & Gaming Center Startup Cost Comparison

Ann Arbor, MI vs Chicago, IL

Ann Arbor, MI

$92,000 - $552,000

COL Index: 108

Chicago, IL

$107,000 - $663,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Ann Arbor, MI	Chicago, IL	Difference
Business Registration & Licenses	$500 - $3,000	$500 - $3,000	Same
Commercial Lease & Build-Out	$24,300 - $182,600	$39,100 - $293,500	-38%
Arcade Games & Equipment	$40,000 - $250,000	$40,000 - $250,000	Same
Business Insurance (Annual)	$3,000 - $12,000	$3,000 - $12,000	Same
Concessions & Food Service	$5,000 - $25,000	$5,000 - $25,000	Same
Marketing & Grand Opening	$3,000 - $15,000	$3,000 - $15,000	Same
Working Capital (3 Months)	$16,200 - $64,800	$16,200 - $64,700	Same
Total Estimated Cost	$92,000 - $552,000	$107,000 - $663,000	-16%

Local Market Factors

Factor	Ann Arbor	Chicago
Cost of Living Index	108	107.8
Commercial Rent ($/sqft/yr)	$18 - $38	$25 - $65
Labor Rate Index	1.05	1.15
Sales Tax	6%	10.25%
Minimum Wage	$10.33/hr	$15.80/hr
LLC Filing Fee	$50	$150

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