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Momentum in the competitive socialising space – a visit to F1 Arcade

Opinion
f1 arcade simulator

Members of the LDP team reflect on one of the newest additions to London’s growing competitive socialising scene, ahead of the second UK venue opening for the brand

by Sam Davey and Isabel GrossLeisure Development Partners (LDP)

Competitive socialising is one of the most talked about new concepts in the attractions industry, having proliferated across city centres globally. In London alone, guests can now try their hand at shuffleboard, ping pong and darts to name a few. All whilst enjoying top-quality food and drink.

At its core, a competitive socialising venue combines some form of gameplay, be it cricket simulators, bowling or indeed bespoke racing simulators, with a bar and casual dining offer. Whilst the activity acts as the anchor, central to the experience is a strong food and beverage component with areas to eat and drink whilst playing or after guests have battled it out. Themed interiors, well-crafted menus and interesting cocktails make these venues a highly appealing place to visit.

The rapid growth of these venues in recent years is a reflection of the evolution of the experience economy. Consumers now desire a greater level of experience at social venues. Typically located in urban centres, such attractions welcome a wide-ranging demographic, appealing to both corporate groups and social occasions.

Racing for all at F1 Arcade

LDP team at F1 Arcade

With any burgeoning concept, we often ask ourselves, is this simply a trend which will ultimately burn out? Or will it remain a long-term success within the sector? We think the latter.

As consultants in the attractions industry, we are fortunate to visit many commercial and cultural attractions each year. On a recent trip to welcome the first of our 2023 graduate intake, we visited F1 Arcade St. Pauls, the first official Formula One simulator racing experience. Situated in the heart of the city of London, Formula One’s first venture in the competitive socialising space opened its doors to the public in late 2022.  

On the ground floor of One New Change, the 1,500sqm venue is centrally located opposite St. Paul’s cathedral, neighbouring an abundance of restaurants and shops. Repurposing two former restaurants and one retail unit,  F1 Arcade serves as the sole leisure tenant to the 20,500 sqm shopping mall. A once quiet area of the precinct is now bustling.

The venue

Upon arrival, the venue is stylish with Formula One circuits rendered into design elements, projecting the more glamorous side of Grand Prix weekends. The circuit-inspired lighting announces the attraction, with a backdrop maximising cathedral views. We were greeted by a staff member who scanned our pre-purchased £15.95 team racing tickets and kindly showed us to our allocated simulators before explaining the set-up procedure.

The gameplay experience allows visitors to choose from five racing modes. They can compete in either individual, team-based or all-venue racing formats. Our team racing tickets meant we were randomly split into teams with each team allocated a simulator complete with motion and audio-visual effects.

The different racing modes cater to all ages and abilities. This helps to maintain a competitive race regardless of skill with an adjusted points system. Some team members kept it casual while others tried their luck at semi-pro and pro (mostly to no avail). Teams can keep track of the leader board through a digital ecosystem including driver profiles and experience currency Arcadian stash.

Each team member was entitled to four races. We felt that this was perhaps a little excessive, but Formula One fans would probably disagree. Three races per head would have been more than enough to satisfy our party.  

Racing reaction

As we visit and work on hundreds of attractions every year, we do have a tendency to rush through attractions. But we make a point of watching the behaviour of fellow visitors.

Our visit took place on a Wednesday at 3 p.m. during the school holidays. It was busy, and we mainly saw small groups of friends (largely late teens and young adults). However, there were also families as well as couples. The majority of guests then shifted to larger corporate groups towards the evening.

We were very surprised by the level of participation, with a seemingly relatively small number of visitors purely spectating. F1 Arcade has clearly hit the mark on creating an engaging environment, and people appeared well-immersed in the experience. Groups generally stayed upwards of two hours depending on the party size.

We also stayed for around this length of time. But then we opted to stay for another hour to sample the food and beverage offerings.

Games and champagne

The food menu is extensive, tasty and well-presented, with a great selection of sharing and large plates. Similarly, the drinks menu has an appealing range of racing-themed cocktails as well as spirits, wines and beer. There is a digital customer experience with visitors encouraged to use a QR code order and pay system. However, more often than not people flowed back and forth from an impressive 13-meter-long central bar or spoke to a willing staff member to place their orders.

We tried many delicious small plates and fittingly had the official sparkling wine of F1 Arcade during and after our racing experience. We believe this attraction has a particularly strong food and beverage offer.

The concept at St. Paul’s clearly has a winning formula; our overall experience was very positive. The brand’s rollout plan is commencing with its second site at Paradise in Birmingham now taking bookings ahead of its opening in late November. Its central location and its proximity to other leisure uses and offices within the mixed-use development, alongside the city’s automotive history, make Paradise appear a fitting home for F1 Arcade.

This will be a similar size attraction in terms of both footprint and the number of bespoke racing simulators, with the same sleek design and top-class food and beverage offering. F1 Arcade then anticipates breaking into the US market, starting in Boston in early 2024. There will be further national and global expansion thereafter – a foreseeable move given the worldwide reach and appeal of the brand.

Podium finish at F1 Arcade

We have worked on numerous competitive socialising attractions around the world. In doing so we have built up a large database of key performance indicators within this now not-so-new attraction typology, with many achieving strong attendance figures. What’s more impressive is the level of spend at these venues.

The anchor for visitation and the point of differentiation may be the activity. However, in most cases, food and beverage, and particularly alcohol, is the true driver of income. With multiple revenue streams, the economics of well-planned competitive socialising venues certainly stack up.

f1 arcade

In general, the best performers have greater levels of capex. They are in strong locations well well-placed to attract both corporate and general visitation. Many concepts are appealing to all ages and strategies are in place to manage this. Under 18’s, for instance, can only enter up to 7 p.m. at many venues. This cultivates a more ‘bar-like’ atmosphere during the evenings and ensures family visitation is satisfied throughout the day.

As mentioned, food and beverage is also an increasingly important differentiator between top and poor-performing competitive socialising venues. Successful venues have a strong emphasis on the quality of the food and drink offered. This results in great reviews but also drives repeat visits.

Is competitive socialising here to stay? Yes, definitely – and F1 Arcade is a great experience. But as with any trend, the attractions that survive, thrive and set the standard are the ones which have been developed with careful consideration, at the right sites and with thorough planning and feasibility.

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Leisure Development Partners

Leisure Development Partners (LDP) is a leading consulting practice focused on the economics of leisure and entertainment real estate. They assess the feasibility of new attractions and assist existing businesses on improvement strategies and long term planning.

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