Welcome to the Play Providers Forum

-State of the Industry Workshop-

LIW 2008

Business PerformanceSession Introduction

• Aims of the Sessions

• Background to the PPA

• Introduce the Panel

Business PerformanceSession Theme’s

• Business Performance

• Business Model’s

• Industry Perception

- Business Performance-

Higher Visitor Numbers ??

yes

no

NA

yes no

NA

Larger Total Revenue??

yesno

NA yes

no

NA

• Over 40% of operators have had competing sites close this year (within 10 miles of their site)

• Nearly 50% of sites have had new competition open this year (within 10 miles of their site)

- Group Discussion Point-

• What is the best way to increase your centres profitability??

-Credit Crunch-

Credit Crunch- Positive Impact, Negative Impact or No Change

0

1

2

3

4

5

6

7

positive negative no change

• 41% of operators are planning investment in their current site(s) or opening in new locations next year

- Group Discussion Point-

• What is the best way to take advantage of the credit crunch as a collective group of operators???

•

-Business Models-

• 10,233 sq ft average sized site to create max. return

• Range of values between 6,000-18,000 sq ft

• 77% ideal location would be Retail/ Leisure units

-Group Discussion Point-

What does the future hold for the industry in terms of ???…

• Number of Sites• Quality of Sites• Size of Sites

-Industry Perception-

Current Image• The public’s perception is a ‘little industry’• No conception to the cost of running an FEC• Better then it was 10 years ago in terms of improved food/ beverage / Health & Safety/ Cleanliness• Cheap place to take the kids, no frills expected.• We are rich and rip off the public• Cheap and Cheerful• Improving all the time, but most spend too much on rent & fit out• Wacky Warehouse!!!!• Poor image because there are so many bad ones• People think it’s a license to print money• General image is they are a money tree• Improving, but still compared in eyes of some as a wacky…• Needed but often charge too much• Everyone thinks we are millionaires as they all come in on busy days and don’t see quiet ones• Hasn’t moved with the times, people are prepared to pay more for better quality

-Industry Perception-How can we improve??

• Raise offering of the sites, Initial investment in this industry is significant but level of continual investment reflects turnover.• Implement mystery shopper system, PPA members work together to gain feedback. National PR.• Promote the fact we adhere to strict COP, standards are hugely different between PPA site & non PPA site.• Government awareness of industry/ PPA and quality of operators, greater customer awareness of benefits of play centres.• More media coverage of the positive side of our industry, linked to health and child development.• Move away from the deep-fried everything culture, improve cleanliness of sites, improve menus.• Stronger educational links and partnerships Primary Care Trusts re healthy living

• Ensure quality on all fronts. Ensuring cleanliness at all times and making your customers feel valued. • Customer Care• To the public we seem more professional. To the property sector we look unprofessional • Improve cleanliness and quality of food and beverages. Increase prices to increase profit• Cleaner, safer and look after the parents better• P.R by PPA, wide-scale implementation of inspections• Promotion of play as a form of exercise for children, improved adult experience• Increase staff / level of customer service• Spend money that we can’t afford. Huge public awareness campaign required to promote industry. PPA has to push government to fight our corner.

-Industry Perception-How can we improve??

-Group Discussion Point-

Industry Perception…

• Where are we now? • Where would we like? • How can we get there?

-Conclusions-