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Smooth operations = happier guests: how to transform FECs with cloud-based solutions

We explore how SaaS solutions can solve pain points and transform operations for the better

Like many other industries, the attractions sector has seen a rapid digital transformation over the last decade. For family entertainment centres (FECs), this shift from coins to cashless transactions has opened the door to more efficient operations, powered by cloud-based solutions.

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Cloud-based options use the internet to share computer resources as needed. They let users pay per use for as many resources as they need. For instance, disc space, software and apps, networks, and other on-demand services. As part of the software-as-a-service (SaaS) distribution model, a cloud provider hosts programs and makes them available to customers online.

Embed STATS and Mobile Wallet cloud-based solutions

But what does SaaS mean for FEC operators, and how can this approach help them to streamline their operations? By solving common pain points, like outdated, inefficient operations, time-wasting manual processes and technology that does not work in harmony across the whole operation, cloud-based providers like Embed can help venues run more smoothly. This leaves operators free to focus on the most important aspect – the guest experience.

Here, we outline four key ways that cloud-based solutions can solve pain points and transform operations for the better.

1. Cloud-based solutions allow FECs to transition away from manual processes

Many traditional FECs, particularly smaller venues and family-run enterprises, can be held back by old-school ways of working. There are many drawbacks to sticking with the status quo. Perhaps the main one to consider is the sheer amount of time that these manual processes take.

Running an FEC is not a simple task – there are many demands on the team’s time. Time spent unnecessarily counting and checking cash, refilling change machines, unblocking coin mechanisms, not to mention dealing with accounting paperwork and paying in cash at the bank, is all time that could be spent elsewhere, making sure that everything is running smoothly.

Little kids plays air hockey in entertainment center.

As well as being time-consuming, these manual processes are not as accurate as using a digital, cloud-based solution. For example, when FECs switch to cashless game cards, all their revenue data is recorded accurately in real time. It is also stored securely on the cloud. This eliminates the chance for human error and means that everything is accounted for – no more cash falling through the gaps.

For the operator, this all illustrates how switching from manual processes to cloud-based solutions can boost operational efficiency and increase profitability. But how does this transition to SaaS benefit the most important person – the visitor? From a guest’s perspective, this switch leads to less friction and therefore less frustration.

A frictionless visit

One example is Tiebreakers, a new eatertainment venue. This opened as a sister company to the Gatlinburg Space Needle and other FECs in Tennessee.  Early on, Tiebreakers had various operating difficulties.  Due to the pandemic, the new FEC struggled with basic operations including keeping games operational and tracking income. Other issues included maintaining sufficient supplies of redemption products and game cards.

Tiebreakers also had trouble pinpointing and figuring out when and where downtimes were occurring at each site. Since the coin-operated arcade generates most of its revenue, the operator knew there must be a means to keep downtimes minimal and, if possible, address them right away.

These difficulties forced Tiebreakers to look for solutions that would improve their bottom line and allow for a more seamless visitor experience.  

The operator opted to bring in Embed’s integrated hardware & software solutions across all locations. It experienced significant operational, revenue, and overall guest experience benefits after switching from coins to Embed’s cashless system. Adopting Software as a Service (SaaS) solutions from Embed, such as the Mobile Wallet and Central Reports, was a game-changing improvement. This eliminated the operational difficulties it had been facing.

When it comes to Mobile Wallet, a virtual game card that can be added to the Apple Wallet or Google Wallet, Derek Shropshire, COO at Tiebreakers said to Embed: “[We] definitely think it’s going to make a huge impact on our bottom line – on our revenue. To give guests that ease of purchase – it all goes back to whom you are making the switch for from coin-operated to cards.

“The Mobile Wallet removes roadblocks to make it easier for guests to have fun.”

2. Cloud-based solutions put the guest in the driving seat

SaaS solutions, like Mobile Wallet, help to put guests in charge of their own reloads, minimising friction. One of the most frequently stated pain points, from a customer’s point of view, is queuing. Visitors hate to visit an FEC and then spend part of their visit waiting in line every time they want to reload their game card at a kiosk or get coins from the change machine.

In addition, today’s guests expect to be able to pay by card, and cashless transactions are fast becoming the norm. Take Europe, for example. According to a 2023 study by the European Central Bank, 55% of polled card consumers prefer using cards or other cashless methods to pay, primarily because of convenience. More than 50% of customers in the UK alone have already used digital wallets for payment. A third also use them to store their tickets or loyalty cards.

Kids-at-arcade

The Mobile Wallet is a virtual game card that can be added to the Apple Wallet or Google Wallet and used to seamlessly play games. It performs the same functions as a conventional gaming card, but it is stored on the visitor’s own mobile device. This means that they don’t need to exit the game; they can just tap to reload, and the fun continues.

Meanwhile, for operators, this seamless guest experience encourages repeat business. The data they gather provides them with useful information about patron behaviour, use patterns, and spending preferences.

The Mobile Wallet in action

Recent Mobile Wallet metrics have demonstrated transformational results in boosting revenue. Both small and large FEC operators are showing the same average metric results with Mobile Wallet use, which is a reload value 5x that of cash, at a $50.57 average Mobile Wallet reload value. This is a huge jump from the $31.95 reload value when guests top-up game cards with a credit card.

Mobile Wallet results

“With 60% of the Mobile Wallet reloads happening offsite before the consumer enters the FEC, these performance results lead to transformative revenue streams, optimal operational efficiency, and record-breaking profit,” said Renee Welsh, CEO of Embed. “Reloading on their phones protects guests from the risk of losing game cards. It also allows them to go big on top-ups thanks to secure mobile encryption technology.

“With the latest uptrend in the use of digital wallets, it only reinforces what we already knew before launching the Mobile Wallet. The future is SaaS. We’re happy that we have a head start in providing operators with a way to transition from manual to digital,” says Welsh.

At Yakima Family Fun Center in Yakima, Washington, Mobile Wallet has already helped to make the guest journey easier. Kelsie Beath, general manager, explains more, speaking to Embed:

“The Mobile Wallet is cool because guests can skip the line. If we see a customer in line to top-up, we can basically just tap on their shoulder and say, ‘I see you’re reloading a card today. If you want, you can follow me, and I can make this really easy for you.’

“We have these QR codes that guests can scan to encode their information. This is easier compared to other sign-ups where they ask for your whole credit history. For the Mobile Wallet, it’s just an email address and a password, and your game card goes straight to your digital wallet [in the mobile phone] – then go tap and play. It’s cool because everyone has a phone in their hand anyway.”

3. Cloud-based solutions give FECs access to more data.

Knowing and understanding the visitor is key to success in the FEC market. This allows operators to anticipate demand and provide a more personalised experience where guests feel valued. Yet this has, historically, been a challenge. However, one benefit of switching to cloud-based solutions is the amount of data insights that these systems can unlock.

The more data an FEC has, the more efficient its operation will be. The right insights can help operators understand the games and times that are popular and which promotions work best to drive revenue, so they can plan accordingly in terms of staffing and types of games that they offer. This leads to a better customer experience for the guests. For instance, they will experience fewer queues as the right number of staff will be on hand at busy times.  

STATS

STATS is a reliable platform for visualising reports and data. Embed created it so that FECs could utilise data to get insights for informed business decisions, enhancing the visitor experience, increasing operational effectiveness, and maximising revenue.

Embed STATS screenshots Cloud-based solutions

The pain of accessing the data they needed was something that Embed’s clients expressed. And research from analytics platform Alteryx and IDC, the International Data Corporation, support this.

According to this survey, 30% of employees who work with data believe that they spend too much time on data preparation when this is a process that can easily be done automatically. In addition, the study found that weekly time lost to failed data tasks is 44%. Consider what an operator could be doing with this time instead, focusing on the activities that will make their firm successful. Many small and medium-sized businesses in the sector do not have the luxury of having data teams or data analytics teams. Typically, the FEC owner is in charge of running things.

Kevin Taylor, CFO of Station 300, was an early adopter of STATS. Station 300 is a popular bowling alley and family fun centre chain with four venues across the US. Speaking to Embed about STATS, Taylor said:

“STATS in my opinion is one of the most effective and versatile management tools we have at our disposal with which to manage our business. It is well done, and I love it.”

Station 300 is utilising STATS to learn more about how its four locations are managed on a daily basis. The user-friendly technology will enable it to improve guest experiences while streamlining operations and making the most of its resources.

Embed STATS powered by AWS cloud-based solutions

Another satisfied STATS customer is Fun Factory, an indoor FEC chain with 20 locations throughout the United States. Its district manager, Jim Matabishop, says:

“STATS is one of the best upgrades we have seen to the Embed system, giving real-time information to our operations. The ability to stand back and look at trends with multiple locations or drill down to individual stores or machines is invaluable.”

4. Cloud-based solutions are reliable

The reliability of their systems is a huge requirement for FEC operators. If games or servers go down, the venue will lose money. Physical servers are limited, and they are also prone to breakage and power issues. The challenges associated with backing up and storing on physical servers may be avoided by FECs that use cloud-based business solutions for their data needs.

Mobile-Wallet-Embed Cloud-based solutions

The accessibility and security of cloud-based data and reporting tools are also an advantage. Particularly for companies with several sites spread across states or the globe. Real-time updates to the cloud enable management to quickly access data, prepare reports, and make decisions based on that data that has an impact on the bottom line. 

The system in the backend is a factor to consider when choosing the right solution. Not all cloud data centres are the same. Embed’s cloud-based technology is supported by the most trusted global household names in tech (Amazon Web Service, Google, and Apple). This means there is no downtime, so guests can game without interruptions.

“Being reliable in this industry is so important,” said Sara Paz, Embed’s chief marketing officer. “If an FEC system goes down, they can’t run their games, they can’t get reports. Operators say to us, they don’t want to be in that position because it impacts revenue. We can reassure them that with Amazon Web Services, you will never be down. It isn’t like a storm can wipe out a server in the Midwest. Their data centres are so secure; the backup has a backup, it’s all in the cloud.”

A system that runs smoothly without downtime will keep guests happy, meaning that they are free to focus on the fun. It also means the operator is free to concentrate on improving the experience, rather than firefighting.

Better operations = happier guests

Looking at these pain points shows how cloud-based Software as a Service (SaaS) solutions can help to lessen the burden of everyday administration for FECs of all shapes and sizes.

By switching to cloud-based solutions, operators can save time, boost revenue, and gain valuable insights. This is of course a win on the operational side. Yet perhaps the real takeaway is that the guest is a winner too. By offering smooth operations and an enjoyable, frictionless experience, FECs ensure that the guest experience is front and centre, building a happy and loyal customer base.

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charlotte coates

Charlotte Coates

Charlotte Coates is blooloop's editor. She is from Brighton, UK and previously worked as a librarian. She has a strong interest in arts, culture and information and graduated from the University of Sussex with a degree in English Literature. Charlotte can usually be found either with her head in a book or planning her next travel adventure.

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