Vol. VIII, No 4, July-August 2008
In this issue
- Editor's corner
- The new leisure economy
- CAN-SPAM updates from the FTC
- Annual restaurant visits
- Cyber Sport arrives
- Free online listing at maps.google.com
- What's happened to bowling?
- Picky eaters have different genes
- Words of wisdom from Walt Disney Parks & Resorts
- Lego Discovery Center opens
- New clients
- Update on Kazakhstan projects
[ Index of Previous eNewsletters ]
Editor's corner
Kazakhstan travelogue, continued (see May-June issue for Part 1)
Our two projects in Kazakhstan brought me back to the capital city Astana, (spelled Actaha in Russian) located in the center of the country, and Uralsk, also know as Oral, in far northwest Kazakhstan. I find it quite exciting to be working in a post-Coca-Cola, pre-McDonald's and pre-Starbuck's culture. Yes, you read that correctly; you can buy Coke and Pepsi, even Coca-Cola Light and Coke Zero in Astana, but there is no McDonald's or other Western fast food chains to be found in the entire country - let alone a Starbuck's. Thank goodness there's at least one country that is still authentic and has been spared from American food imperialism. No doubt it won't last long.
On all our projects, whether international or domestic, we do extensive ethnographic and cultural research. Rather than just export standard Western project solutions, we tailor the project to its culture, developing the project's brand identity, in part, to celebrate that culture. You can read more about culturally competent design in the article, The importance of cultural competence to location-based leisure projects.
Our initial research into Kazakhstan's cultural identity puzzled us. We surveyed a number of mothers and asked them:
- What about Kazakh culture are you most proud of?
- What do you want your children to learn about Kazakh culture, values and history?
We basically got answers that indicated there was nothing about Kazakh culture they cared about or wanted their children to learn. For a country with such a long history of greatness, this seemed a baffling response. How can 16 million people lack a cultural identity? How can you know what you are as a country if you don't embrace your past?
We had hints of this when we first visited Astana and saw its eclectic architectural styles that include Islamic, Soviet, Western and wacky futuristic designs (click for slide show of Astana buildings).
Unlike most American, European and Asian cities, Astana had no overriding architectural look or style.
So we went back to the drawing board to figure out what was going on. What we learned from research is you need to understand Kazakhstan's history to recognize what has resulted in what Yevgeny Zhovtis, one of the country's leading political scientists, declares, "There is a very big national identity crisis." Blame it on the Soviets.
Kazakhstan was among the first Soviet republics to experience nationalism in the early 1980s, which later swept through the entire Soviet Union. Once independence was achieved, the newly born states tapped into their historic memory, remembering and often re-interpreting their pre-Soviet past in order to learn how to live in their post-Soviet present. But Kazakhstan's historic memory proved to be lacking and its statehood had no roots of its own.
During the USSR's grand First Five Year Plan, the Kazakh nomadic tribes were forced to settle down and exchange their nomadic life to become settled farmers in new collectives. Rather than hand their herds over to State control, they slaughtered the herds. Unaccustomed to agriculture, they died by hundreds of thousands from famine and disease. Those who opposed collectivization were sent to labor camps or killed. At the same time, Kazakhs were forced to give up their oral tradition for Russian and European influenced literature, art and music. The Soviets also altered history by drawing new borders. They filled the vast Kazakh steppe with industrial cities with millions of people (including prisoners) from all corners of the Soviet Union. By the 1930s, Stalin had turned Kazakhstan into a human trash bin for the Soviet Union. Millions of men, women and children were sent to concentration and labor camps Russia built in the Kazakh steppe. Most of those who managed to survive stayed in Kazakhstan, resulting in its diverse, multicultural society. As the only Central Asian republic with a border with Russia, Kazakhstan became the most ‘Russified' of its territories. During the Soviet domination, little was taught about Kazakh history. One former school teacher reported textbooks contained only five pages about Kazakhstan's history. When Kazakhstan gained independence in 1991, only 40 percent of its population were ethnic Kazakhs. Few spoke the Kazakh language. Their nomadic ancestors left almost no written records; their rich oral tradition was wiped out. With independence, Kazakhs found it difficult, if not impossible, to remember what their culture was like before the Russians arrived. Without a collective memory of their pre-Tsarist Kazakh history or of their stories, art, music and other traditions, cultural identity doesn't exist. This is especially true, since less than half the population had ancestors who lived in Kazakhstan during the great era of pre-Tsarish Kazakh culture.
Kazakhstan now has the rare and challenging opportunity to create a country based on citizenship instead of blood ties.
 In a recent BBC interview, President Nursultan Nazarbayev, who has been in power since the Soviet days, says he has done just that. "We are the most multiethnic of all post-Soviet republics. As the result of Stalin's policies, we have people of 130 nationalities living here -- these are people who lived through true terrible catastrophes and hardships. That's why the first thing we did when we gained independence was to create equality for all."
President Nazarbayev is trying to form the new national identity by bringing back the Kazakh language as the national language, instead of the currently spoken Russian language. It is being taught in all the schools. All government bureaucrats are required to take Kazakh classes and pass language tests. There is also discussion about switching from using the Cyrillic alphabet for the Kazakh language to the Latin alphabet. This is the same switch Turkey and the former Soviet republics Azerbaijan, Turkmenistan and Uzbekistan have made. Along with the usual arguments for alphabet change, especially helping to integrate the country into the global economy, government officials have argued that a Latin alphabet could help Kazakhstan forge a more cohesive national identity, moving it out of Russia's shadow. "Switching the Kazakh alphabet to Latin means for Kazakhs changing the Soviet (colonial) identity, which still largely dominates the national consciousness, to a sovereign (Kazakh) identity," stated a Kazakhstan Ministry of Education and Science report. "Among the many arguments in favor of switching the Kazakh alphabet to Latin, boosting the national identity of the Kazakh people is the main and decisive one."
 Many citizens of Kazakhstan think there is a real conflict with President Nazarhabev attempt to build an identity based on multiculturalism while at the same time basing it upon ethnic Kazakh tradition relating to only a minority of the population. Some believe that as a result, the government is not only alienating the majority of its population, but also creating a cultural myth.
The late Kazakh historian and academic, Nurbulat Masonov, explained it by comparing the Soviet legacy to a Russian matryoshka doll. Just as with the wooden nesting dolls, where each is smaller than the other, the Soviet-era Kazakhstan was created from layers of values and cultures. The smallest doll represents the Kazakh values, hidden in the heart of the big matryoshka. He said, "Kazakh culture was part of the hierarchy, but it was only a very small part. But now we are throwing out all the dolls and trying to blow our midget matryoshka into a colossal size, and assign her false achievements."
"All surveys conducted since independence show a very clear trend," says Yevgeny Zhovtis, "and the trend is non-Kazakhs do not feel they are part of the nation-building process. They are working here, they are living here, but they also feel like they are guests, and they don't associate their future with the country."
Only time will tell whether Kazakhs can find a unifying identity by merging their diversity with a revival or reinvention of the lost folk traditions. In that process, some fear, half the nation will be left behind.
Perhaps the country needs to throw a third building block into its national identity formula: the strong disdain for their Soviet era, which is a mindset probably shared by the majority of the population.
There are signs that Kazakhs are starting to rediscover some of their pre-Soviet culture. One example is Yedil Khusainov, a musician who has gained considerable fame in Kazakhstan by performing with 10 different ancient Kazakh folk instruments with the hauntingly beautiful skill of throat singing. He sings in two of the three styles of throat singing, kargara, low throat singing, and sygyr, high throat singing.
Yedil Khusainov
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Yedil Khusainov with the Kerulen
Folklore Group in traditional Kazakh attire |
Meanwhile, back to the cultural identity issue, we are studying just how much of Kazakh culture will be appropriate to integrate into the two projects' brand identities. If that culture is only the smallest matryoshka doll, we will need to find a bigger doll to build the brand identities around.
In this issue
We are continuing our examination of economic and out-of-home entertainment trends that will forge the future. In the last several issues, we have looked at leisure expenditure trends of both money and time. Little could we have guessed just a few months ago how accelerated some of these economic trends would become. Now we see oil at $145 per barrel, and by the time you read this, it may be even higher. Food price increases are accelerating, as well. So in our article, The new leisure economy, we continue to look at the impact all this could, and probably will, have on many American households and the entertainment and restaurant industries.
Meet our new office mascot, Sophia.
She’s a four-month old Chihuahua |
We also take a look at bowling and the changes it has seen -- not only over the past decades, but more specifically, to the bowler base since 1999. Some findings may well surprise you.
We have information on a change in the e-mail anti-spam regulations you need to be aware of if you e-mail customers. You'll also find information on how to get free listings on several of the Web's most popular sites and to give your customers the opportunity to write online reviews. We also offer coverage on a new attraction that we think has legs, Cyber Sport.
There's even more, but we'll let you discover that on your own.
Print out a copy and take it with you for some informative reading on your vacation this summer or your next business trip.
Randy White
Editor
The new leisure economy
 Only a few months ago we identified trends that impact both restaurant and away-from-home entertainment spending in the United States in our two-part article, The shifting nature of leisure time and expenditures. One of those trends is a consumer shift in entertainment spending toward electronic entertainment purchases and away from out-of-home entertainment. Another trend is that discretionary spending, including food away-from-home and out-of-home entertainment, is being eaten away by the increasing costs of energy, health care and education. This is especially true for households with the lowest 70 percent of incomes.
When we wrote that two-part article, we didn't anticipate how quickly increases to energy and food costs would accelerate. Now, with oil prices bouncing around above $140 a barrel, gasoline prices north of $4 per gallon and more than 20 percent of Americans paying $100+ to fill their gas tanks, it looks like Americans are in for price increases unimaginable just a few months ago. With droughts in Australia and floods in America, a global situation where food demand begins to exceed supply has suddenly gone from bad to worse. And the high cost of energy evident at the gas pumps is just starting to work its way into electric, natural gas and heating oil costs.
There is a general consensus that in the next year or so, we will see electric, natural gas and heating oil costs increase by 50 percent. And food costs are projected to increase at an annual rate of 7 to 9 percent for at least the next three years. Those costs have already increased this year at an annual rate of 6.3 percent, and that's before the impact of floods, drought and spike in gasoline and diesel fuel costs has worked its way into the cost of production, supply and distribution chain.
So what impact is this likely to have on the restaurant and away-from-home entertainment industries? In some respects, for certain consumer market segments, things are going to get rather bloody. We prepared the following analysis to try to better understand the impact of these sudden and continuing price increase may have.
We looked at 2006 household expenditures (the most recent data available) as a percentage of after-tax income, for the five different quintiles of household income. Then we projected price increases for food, energy and health care to see the potential impact on restaurant and out-of-home entertainment spending in 2009.
Section "A" shows 2006 expenditures for the five quintiles of household income as the percent that spending in each category was of total after-tax income. Row "B" shows that households in the third quintile of income spent 23 percent of after-tax income for food at-home, energy (gasoline, electricity and home natural gas and heating oil) in 2006.
Section "C" shows the percentage of after-tax income each quintile will have to spend in 2009 based upon projected cost increases to 2006 expenditures over the three years: food at-home costs increases of 10 percent, total home energy costs increases of 50 percent, gasoline cost increases of 50 percent (most of which has already occurred) and health care cost increases of 12 percent. So, in row "D," for the third quintile, those three cost categories in total would require 29 percent of their household's after-tax income, a 6 percent increase (row "E") over 2006.
Row "F" shows how much after-tax income exceeded all expenditures for each quintile of household income in 2006. For the third quintile, after-tax income exceeded all expenditures, with 5 percent left for things like savings.
Section "G" shows the percent of after-tax income households spent on away-from-home entertainment and food away-from-home in 2006.
We can see the potential implications for restaurant and away-from-home entertainment expenditures by comparing rows "E", "F" and "G." For the third quintile of income, the price increases will consume 6 percent of after tax income. This exceeds the 5 percent excess of that quintile's after-tax income over all expenditures in 2006 and is greater than that quintile's total 2006 spending on away-from-home entertainment and restaurants in 2006 (6 percent). In 2009, to offset the increased cost of food, energy and health care, the third quintile will most likely have to make some serious spending cuts in other areas, especially discretionary areas like restaurant and away-from-home entertainment expenditures.
The situation will be less severe for the fourth and fifth highest quintiles, where the projected price increases will consume a lesser percentage of their after-tax income. Because their after-tax income is far greater than all their expenditures, they have some cushion for dealing with the increased costs.
The first three quintiles -- the lower percent of households by income - will suffer some serious hardships and have to make serious cuts to their restaurant and away-from-home entertainment spending. The upper two quintiles will probably do some trimming to that spending. Or at the very least, they will be much more fastidious in their choices.
How might all this play out with away-from-home entertainment spending? High gas prices and an increasing concern for the environment will make consumers who can still afford away-from-home entertainment much more conscious of the distances they need to travel to visit entertainment venues. The demise of low-cost airfares will surely result in less business for resorts, cruise ships and major vacation-entertainment areas like Las Vegas and Orlando. A large portion of consumers' away-from-home entertainment spending will shift to "staycations" and destinations close to home. Waterpark resorts near metropolitan areas will probably prosper, as well as metropolitan-based theme parks and waterparks. Those family entertainment type venues that cater to the higher socioeconomic consumers will probably do fine. Those that cater to the lower socioeconomic groups are in for some rough, if not fatal times.
And all entertainment destinations will need to sharpen their acts to compete with electronics. Electronic games, Internet-based games, television and DVDs are a far better buy in terms of cost per hour of entertainment when compared to entertainment venues. Nevertheless, consumers will not want to be held 100 percent captive in their homes and will seek out destinations where they can socialize and have fun. Entertainment venues that are also dining destinations, what we call eatertainment, will have a strong competitive advantage for two reasons: less driving required when consumers go out to eat and play, and one-stop shopping saves time in a society increasingly experiencing time-poverty. More than ever before, consumers will ask, "Can you give me a compelling reason to come to your place?"
CAN-SPAM updates from the FTC
The Federal Trade Commission (FTC) published a report on changes to the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM) on May 12, 2008. These new rule regulations may affect your email marketing, so read on to make sure you are up to date on the latest guidelines. The changes took effect July 7, 2008.
The key modification you need to know: Provide in your emails a simple, hassle-free and cost-free way to unsubscribe from your list. This means you can no longer require your email recipients to log into their account and go through a series of steps to modify their subscription. According to the FTC announcement, you may not ask email recipients to "take any steps other than sending a reply email message or visiting a single Internet Web page to opt out of receiving future emails from a sender." You also cannot ask your email recipients to "pay a fee, provide information other than his or her email address and opt out preferences."
You can access the entire report at the FTC website.
Annual restaurant visits
Higher income households go out to eat more frequently and spend more in restaurants than lower income households.
Cyber Sport arrives
It's not often a completely new attraction is developed that has the probability of long-term success. We believe Cyber Sport, developed by a company founded by Jim Kessler may just fit that description. Kessler is the co-owner and original developer of the highly successful 10-year-old LASERTRON Interactive Entertainment Center in Buffalo, New York.
We have great respect for Kessler. He is a very smart operator and has pioneered a number of concepts at his LASERTRON Center, including the concept of reservations for laser tag.
Cyber Sport is a combination of lacrosse, basketball and hockey played with two teams of five members each driving custom cars on a 40 foot x 60 foot court. Each player is equipped with a one-handed scoop used to pick up, pass and shoot the ball during a Cyber Sport session. Each session of Cyber Sport consists of three, eight-minute games. Each team must begin the game on their half of the court. The Ride Operator starts the first game by throwing the ball out onto the center line and into the throw-in circle. At the end of each game, both teams return to their side of the court and the losing team starts with the ball (unless the last game resulted in a tie, which results in another throw-in by the Ride Operator). Goals are mounted at each end of the court and each goal has three or more openings. Points are awarded to the team that can get the ball through one of the openings of their opponent's goal. Once a goal is scored, the team that did not score immediately takes possession of the ball. The team that wins two or more games of the session is the overall winner.
 
Cyber Sport is recommended for players 54" or taller or age 10 and older.
Cyber Sports’ new color scheme |
To see a short video of Cyber Sport in action, click here.
The idea for Cyber Sport came about when Kessler was looking for a new attraction for the center that required less space and appealed to both male and female adults. After analyzing several different opportunities, they decided to go with Cyber Sport, and the Kessler development team spent over four years developing the concept. In July of 2006, the first prototype Cyber Sport system was installed in the LASERTRON Interactive Entertainment Center. In December 2007 it was upgraded with the first production model. They are now selling licensed territories for Cyber Sport. The next facility is scheduled to open in September in Addison, Illinois. The LASERTRON Center is now in the process of installing a second court.
Free online listing at maps.google.com
In today's high tech society, many potential customers first look at online reviews about a location-based business before making a decision to visit. With increasing prices, pinched budgets and time poverty, consumers are being especially vigilant to make sure they don't waste their money or time. Research shows that women more then men will consult the Internet on potential purchases. That's why it is wise for location-based leisure facilities to have an online presence at sites where consumers go for reviews. A business with no reviews could easily be judged unfavorably.
A number of popular Websites offer businesses the free opportunity to be listed, post pertinent information about the business including hours, polices, photos and even add YouTube videos.
 Maps.google.com is the Web's most desired location for local businesses. It is the most visited for local reviews, because it lists local businesses and reviews in its search results. You can sign up at the Google Maps Local Business Center to create your listing. First you'll need to set up a Google account. Once you are up and running on the site, you can invite customers via an e-mail link from the Google site to submit reviews (consider using www.tinyurl.com first to reduce the long Google URL to six characters).
Other Websites worth considering for listings and reviews are local.yahoo.com and yelp.com.
However, Web reviews and postings have a serious downside. Through what interactive marketing expert Pete Blackshaw calls "consumer-generated media" - blogs, social networking pages, message boards, product review sites - even a single disgruntled customer can broadcast his complaints to an audience of millions.
In June 2006, a man named Vincent Ferrari had a shockingly combative conversation with an AOL sales rep; he recorded it and posted it on YouTube. More than 62,827 viewings later, AOL's reputation was irretrievably damaged.
 In the digital age, disgruntled customers are now in the driver's seat, argues Blackshaw in his thoughtful and engaging book, Satisfied Customers Tell Three Friends, Angry Customers Tell 3,000, which is about running a business in today's consumer-driven world.
Blackshaw says that credible companies will get favorable reviews and buzz. But if you lack credibility, you're going to be outed, which can leave a lasting mark. "I've worked with a lot of clients who have been severely damaged by very hostile commentary that has almost taken up permanent residency in search results and Wikipedia and other places," Blackshaw says.
Through remarkable stories of mass consumer advocacy and the power of bloggers and ordinary Joes with an Internet connection and a bone to pick, Blackshaw advises readers how to build credibility into their businesses through blogs, Web sites and video postings.
What's happened to bowling?
 The invention of the automatic pinsetter led to a rapid growth in the number of bowling alleys and lanes in the later 1950s and early 1960s. The heyday of bowling was the mid-1960s, when there were approximately 12,000 bowling centers in the United States. Business predominately was driven by leagues where bowlers signed up to come once or more every week for at least 30 weeks and to participate in tournaments.
Bowling has undergone a major transition over the past several decades. Whereas league bowling used to generate about 70 percent of a bowling center's business, due to societal and lifestyle changes, it now generates only about 40 percent of overall bowling business, and is continuing to decline.
During the 1997-98 year, the United States Bowling Congress reported 4.1 million members of the ABC, YABC and WIBC league bowling organizations. That membership declined by 36 percent to 2.6 million in the 2006-07 year.
There has been a steady reduction in the number of bowling centers since the 1970s, driven by both the decline of league bowling and the sale of many bowling centers so the land could be used for more profitable ventures. As of December 2007, there were only 5,498 certified 10-pin bowling centers with 113,897 lanes, and just 137 duckpin and candlepin centers with 2,560 lanes. That's less than half the number certified in the mid-1960s.
Research shows 51.6 million, or 19.1 percent of people age 6 and older bowled in 2007, which is only a slight reduction from 52.6 million in 1999. The number of occasional bowlers has actually increased during that period, while the number of frequent bowlers who bowling 25 or more days a year has decreased. In 1999, there were 8.8 million frequent bowlers. In 2007, the number shrunk 21 percent to 6.95 million. During the same period, the number of infrequent (predominately open-play) bowlers increased by almost 1 million. The largest percentage increase of occasional bowling among adults was with full-time college students. In 2007, the average bowler visited a bowling center 12.6 times. On average, every day of 2007 you could find 2 percent of the U.S. population 15 years and older bowling.
The decrease in league bowlers is the predominate reason there has been a 14 percent decline in the annual number of bowling participation days, or attendance at bowling centers in 2007, compared to 1999.
There are a number of misconceptions about bowling. During the league era, it was a predominately blue-collar recreation. But today, bowling has shifted to predominately white-collar participants. In 2007, 42 percent of bowlers had household incomes of $75,000 or higher, compared to just 30 percent in that income bracket in the total U.S. population. More than 25 percent of bowlers come from households with $100,000 or higher incomes compared, when only 18 percent of all U.S. households are at the income level.
 White Hutchinson recently completed a socioeconomic/lifestyle analysis of 2007 bowlers. It indicated that while 40 percent of all U.S. households are upper-middle and higher income white-collar, 56 percent of bowlers come from that socioeconomic/lifestyle group. The highest participation rate for bowling (150 percent of the average participation rate) was with upscale households (midway between upper-middle class and wealthy households) followed by wealthy, college graduate, white-collar and professional households. Upper-middle and higher income families with children had some of the highest participation rates, with one married family with children upscale socioeconomic/lifestyle group having the very highest participation rate of all groups.
Today, bowling is not predominately for adults. The highest participation rate is among children: more than one-third of all children 6 and older bowled in 2007. That participation rate is 80 percent greater than the average for all age groups. The next highest participation rate is with young adults up to age 34. The 6 to 34 age group contains two-thirds of all bowlers.
Nor is bowling mostly a recreation for men. In fact, 46 percent of all bowlers are girls and women.
What we see today are two distinctly different types of bowling centers. There's the fast-dying old style bowling alleys of yesteryear, compared to the new, contemporary designed centers that cater to the open-play customer. These include the new adult-oriented bowling lounges and bowling-based multi-anchored family or adult entertainment centers.
 Indications are that bowling is gaining popularity, perhaps due to the improved condition of bowling centers. In 1999, only 11.5 percent of bowlers said bowling was their favorite activity. In 2007, that percentage rose to 12.4 percent. In fact, for every type of indoor or outdoor recreation, bowling remains the third most popular. Recreational walking and biking come in first and second.
One of the big problems we see with a number of the new family-oriented bowling or bowling-based entertainment centers is they fail to match the product to the market. The owners and designers appear to be stuck in the paradigm that bowling is a predominately blue-collar adult recreation. In reality, it now appeals mostly to white collar and professional households, especially families with children. The other shortfall we often see is centers designed only for bowling, when many participants are there more for socializing than for bowling. Along with the blue-collar paradigm, we continue to see the snack bar or concession paradigm. The most successful centers today take food and beverage very seriously by featuring a destination restaurant.
In summary, there is good news and bad news about bowling. The bad news is the old style bowling alley will soon be a dinosaur. The good news is open-play bowling is extremely popular. Centers can be very successful if they match the product to the niche market that loves to bowl.
In fact, we find the demand for bowling is elastic, based upon the quality, atmosphere and presentation of bowling. The more centers that match the tastes and values of upscale consumers, the more those consumers will come out to bowl. Think about it. Would you want to spend time in one of those smoky, stodgy, dark prehistoric bowling alleys offering food less appealing than what you find at the State Fair? Of course not. Introduce a new, contemporary bowling center in that same market, and open-play bowing attendance will suddenly shoot up.
 One of the newest challenges bowling may face, other than the economic downturn and rising energy, food and medical costs (see The new leisure economy), is virtual bowling at home. This sport is made possible by the Nintendo Wii video game system. It will never offer the same thrill as whirling a real ball down the lane and hearing the authentic sound of it striking the pins, but the in-home experience does offer a social experience with family or friends at a much more affordable price. (For more about in-home electronic entertainment taking market share away from out-of-home entertainment venues, see the first part of our article, The shifting nature of leisure time and expenditures.)
Our company is continually working with clients to upgrade and expand their existing bowling centers or to design new bowling-based concepts. Our work includes conducting feasibility studies and market research to serve as the foundation for our design work. We subscribe to what is called "evidence-based design," which means all our work is based on solid research, some of which we have shared with you in this issue. Our research indicates who the target customer is for various attractions, and that enables us to match the product to the market, using a large body of additional research. For individual centers, we are able to conduct very specific research focused on the market area to determine the demographic and socioeconomic/lifestyle characteristics of the market area population. Then we can best match that with the design of the bowling-based facility and its attractions.
We actually got our start in the location-based entertainment industry with bowling. In 1989, Olathe Lanes East, then an old style bowling alley in a suburban area of Kansas City, burned to the ground, and we were hired to handle its redevelopment. Our research found the majority of its customers were white-collar, and 51 percent were women - even though the owner told us his average customers were "beer guzzling blue-collar men." So we matched the new bowling center to its market with more upscale art deco décor, cocktail seating on the concourse (the old style settee seating was designed for leagues, not open-play bowlers), one-level floors and approaches, windows and skylights, hand-made hamburgers and nice restrooms. Guess what? After the center reopened, business doubled, food and beverage sales quadrupled and the center was able to command a 35 percent premium price for bowling over other bowling houses in town.
 
 
Olathe Lanes East bowling center where we learned that matching the product to
the market is one of the keys to success in the location-based entertainment industry.
Olathe Lanes East was a great first lesson for us. Match the product to the market and the volume of business will expand (that elastic demand we mentioned) with nothing else in the market being different. We've been helping clients be successful ever since by never forgetting that basic marketing principle.
Picky eaters have different genes
Picky eaters can sometimes be a pain, but it's not their fault. Blame their parents. Linda Bartoushuk, a taste researcher at Yale University, has identified a group of people she calls "supertasters" because of their genetic makeup. Supertasters, who make up 25 percent of the population, are extremely sensitive to certain flavors, especially bitter and spicy ones. And more women are supertasters than men, 35 percent of women compared to 10 percent of men.
The reason for their supertasting ability is they have about twice as many taste buds per square centimeter on their tongues as normal tasters do.
There's a third group of non-picky eaters with very low taste sensitivity that Bartoushuk calls non-tasters. They're easy to please, but make up only 25 percent of the population.
Words of wisdom from Walt Disney Parks & Resorts
Jay Rasulo |
On one of our CEO Randy White's many flights, he ran across an interview with Jay Rasulo, chairman of Walt Disney Parks & Resorts in United Airlines magazine. Some of what Jay said was very insightful, so we're reprinting parts of the interview here.
"... The wonderful legacy of storytelling that was left by Walt and the generations that followed has given us the ability to tell stories that touch people, make them feel better, and enable them to share an optimistic view of the world. I'm thrilled to be part of it.
"One very interesting thing about working here is the nomenclature we use: calling the people who come to see us our ‘guests,' calling our colleagues ‘cast members,' and saying we ‘play roles' when we're ‘onstage.' It's simple, but it truly represents our traditions of service and storytelling.
"We really believe in the philosophy that everyone's a VIP. We want our cast members to be empowered to react outside of a set of guidelines and policies when something extraordinary happens - and with the guest focus in mind.
"From our very first contact with our guests, we have the chance to begin a relationship that culminates in their actual experience, and is more than just a transactional service. Whether it's a stay at Walt Disney World or a Disney cruise, there are intense, immersive experiences that lead to an emotional connection to the brand.
"Because of this, we have a unique opportunity to build a relationship with our guests, and it's really important that we start that winning relationship up front and consistently reinforce it. Whether it begins on the Web or with a call to the reservation center, the relationship starts right at that moment - a moment we see as the first of countless opportunities to build a sense of welcome.
This was the philosophy that Walt put in place. When you go from the backstage of a hotel, park, or cruise ship to onstage, you are performing in a big piece of entertainment in which the guests are participants. Everything you do has to be consistent with that - including your costume, your attitude, your smile and the way you greet people and provide proactive hospitality. This has taken us a long way and I think can apply to any company that offers experiential services..."
One thing Disney understands that many leisure venues still fall short on is there has to be total consistency with every aspect of the business and its operation to build an emotional relationship between the guest and your brand. It's all about building a strong brand, no matter what size your business is
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Lego Discovery Center opens
The first American indoor Legoland Discovery Center will open July 25th at the Streets of Woodfield shopping center across the street from Woodfield Mall in Chicago.
The 30,000-square-foot two-story center is modeled after the Lego Discovery Centre in Berlin, Germany. UK-based Merlin Entertainment, the developer of both the Berlin and Chicago centers, reports the Berlin center attracted 500,000 visitors in its first year of operation.
Designed for families with children ages 2 to 12, the Legoland Discovery Center will include a Lego factory, 4-D Lego movie, a model workshop a Lego-themed dragon ride, a build-and-test area and birthday party rooms. The center will also include a miniature Chicago skyline with building replicas made from Lego bricks, including the Sears Tower, Lake Point Tower, Water Tower, John Hancock Center, the Chicago Theatre, the Chicago Cultural Center, Navy Pier, the Wrigley Building and the Fourth Presbyterian Church. The center will be open 10 a.m. to 7 p.m. every day except Christmas.
We hope to visit the Center in the near future and to give you a first-hand report.
New clients
 Boondocks Fun Center, Meridian, Idaho
Conducting a market study and a performance and facility audit to determine expansion feasibility and better integration with the adjoining Roaring Springs Water Park, which recently purchased this popular family entertainment center from it's the previous owner.
Sioux Falls, South Dakota
Conducted preliminary market feasibility and site evaluation for development of a bowling-based family entertainment center.
Iconic Driller statute
at Expo Square |
Tulsa Fair Grounds (Expo Square), Tulsa, Oklahoma
Conducted preliminary market study and evaluation for the development of Tulsa resident attractions on an adjoining expansion site.
Greater Atlanta area, Georgia
Conducted preliminary market feasibility and site assessments for a children's play and discovery (edutainment) center.
Gig Harbor, Washington
Performed market evaluation and site evaluations for a bowling-anchored family entertainment center.
Kart Ranch, Lafayette, Louisiana
Conducted audit of this existing family fun center. Currently designing renovation plans.
Update on Kazakhstan projects
We are working on full market and financial feasibility studies, including the design of the preliminary site and floor plans, for two projects in Kazakhstan:
Uralsk (Oral)
Renovation of 23,000 square meters (247,000 square feet) of industrial buildings in this northwest Kazakhstan city of Uralsk (also known as Oral or Ural'sk) as a mixed-use adult and family entertainment and restaurant trade center.
Astana, Kazakhstan
Development of a family pizza buffet-entertainment center in Kazakhstan's capital city.
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White Hutchinson Leisure & Learning Group
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Lego lovers, start your bright yellow engines and head for Chicago. That's the site of first Lego Discovery Center to open in the United States. The attraction is modeled after the flagship center in Berlin, Germany, which drew half a million visitors in its first year of operation.