This is a print-friendly version of www.whitehutchinson.com/news/lenews/2025/february/article104.shtml

White Hutchinson Leisure & Learning Group, Kansas City, MO, USA

Can Chuck E. Cheese recover?

The pandemic decimated Chuck E. Cheese, forcing the parent public company CEC Entertainment (CEC) into Chapter XI bankruptcy in 2020. The company became a private company in 2014 when Apollo Global Management acquired it for $1.3 billion. CEC Entertainment also includes Pasqually's Pizza & Wings and Peter Piper Pizza.

The chain's same-store sales are up 5% since 2018. That means they are really down around 20% on an inflation-adjusted basis from 2018 to 2024 when inflation was 24.9%.

Since then, CEC has invested $350 million in store remodels with store designs, menu offerings, technology, new games, and active play, including trampolines and dance floors to jumbotrons and digital ordering kiosks. CEO Dave McKillips reports that CEC has seen eight straight months of same-store sales growth.

Will CEC recover to its 2018 same-store sales? It's questionable with all its headwinds:

• McKillips said, "46% of parents are cutting back on out-of-home entertainment."
• KGOY - Kids getting old younger. Children's age compression, children growing up faster and becoming more sophisticated for their age in what appeals to them, has shrunk the children's age range for the appeal of children's entertainment centers such as Chuck E. Cheese.
• New Meaning for Family Time - The coronavirus pandemic caused major behavioral shifts in priorities and how we go about our lives. One of those emotional, behavioral shifts is an acceleration of a trend that began several years before the pandemic - parents increasingly putting themselves first instead of their kids, unlike their parents. Parents now feel they can't be good to their kids unless they're good to themselves. "Family time" has taken on a new meaning. Millennials' parents want to pursue their passions while they spend their free time with their kids. Doing things with their children is no longer about kid-specific activities. They want new, exciting experiences that fulfill them personally while bringing their kids along for the ride. This has resulted in a shift of "family time" away from children's venues to places that satisfy parents' entertainment preferences.
• Increasing competition in the eatertainment space that appeals to adults, especially the many new and expanding social gaming venues (often mistakenly called competitive gaming).
• Baby Bust - Since 2007, there has been a 16.5% decline in births, resulting in a decline of nearly 1.0 million fewer children ages 3-8, the age group Chuck E. Cheese appeals to.
• Impact of the Pandemic on Children - see the Not-so-happy anniversary article (www.whitehutchinson.com/ news/ lenews/ 2025/ february/ article103.shtml#article) in this issue.

Only time will tell what the future holds for Chuck E. Cheese and other children's entertainment centers.

Subscribe to monthly Leisure eNewsletter (www.whitehutchinson.com/ subscribe/ lenews/ )

© 1999 - 2026, White Hutchinson Leisure & Learning Group, Inc.
The contents of this website and eNewsletters are protected by USA and international copyright law. Permission is granted to download and print single copites of any of the contents or articles for personal use. No other copies may be made. Educational institutions may obtain permission to make multiple copies for classroom use by e-mailing us with details. The contents of articles may be quoted provided credit is given to the "(author's name), White Hutchinson Leisure & Learning Group, Kansas City, MO, USA". All other rights for use or reproduction of the contents and articles are reserved.