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

Making the barbell work: Affordable visits and worthwhile splurges

The K-shaped economy describes a divide between higher-income households with money for discretionary spending and those whose budgets are squeezed by everyday expenses. For location-based entertainment venues (LBEs), this creates demand for both affordable outings and premium experiences. A barbell strategy offers appealing options for both.

Premium demand comes from two sources: guests who routinely pay more for better surroundings, food, service, and convenience, and value-conscious guests who trade up for a birthday, anniversary, or other special occasion. Some may visit less often or skip everyday outings to save for that premium experience. They trade down to fewer or no outings so they can splurge on something special when they do go out. Others who splurge might return to a value-priced offer on their next visit. The opportunity is to serve a range of budgets and occasions, recognizing that the same customer may want an affordable outing one day and a premium experience another.

Our May article (www.whitehutchinson.com/ news/ lenews/ 2026/ may/ article106.shtml#article) examined how the K-shaped economy affects LBEs. Our June article discussed combining premium experiences with affordable, predictable packages. Making that combination work requires attention to what guests value and to the cost of delivering each offer. A casual outing needs to be easy to arrange and affordable enough to repeat. A premium evening out needs to justify the higher price. A celebration needs to feel special and make the organizer's job easier. Each deserves an offer designed for that purpose.

At the affordable end, other industries offer a useful lesson. Target introduced Dealworthy, its brand of inexpensive everyday basics, emphasizing value without sacrificing quality. The lesson for LBEs is to design an affordable offer that can be delivered profitably at its intended price, rather than simply discounting an existing offering.

That might mean a shorter game session, a smaller group, a simpler menu, or a visit during a quieter period. A 45-minute activity for two to four guests could attract people who cannot justify spending two hours or organizing a larger group. The total purchase price is lower, while the quality of the experience remains the same.

Guests should still feel they had a complete outing. An attractive entry price loses its appeal if enjoying the visit requires a series of additional purchases. Working attractions, cleanliness, comfortable surroundings, and friendly service belong at every price level.

At the premium end, guests need reasons to choose your venue for their everyday leisure time. Appealing design, comfortable seating that makes conversation easy, excellent food and drinks, and attentive service can make an ordinary evening worth spending more for.

Convenience matters, too. The ability to reserve a game time and have a table ready afterward can appeal to guests who value their time. These benefits can encourage repeat visits and higher spending without requiring a special occasion.

Celebrations present an additional premium opportunity, including among customers who typically choose affordable visits. For these occasions, taking work and worry away from the organizer can be especially valuable.

Universal Orlando's VIP experiences combine guided visits with priority access to attractions, and customized itineraries are available for private tours. Guests pay for help making the most of their day and for special access.

A community LBE can apply that principle through advance planning, a reserved gathering area, a dedicated host, organized games, and food served at the right time. Having someone else handle the details can be worth considerably more than extra game credits or another platter of food.

The service must deliver on its promise. A supposedly dedicated host who leaves to cover other duties will quickly undermine the package's value. Premium offers require appropriate staffing and clear responsibilities.

Repeat visits offer another opportunity. Chuck E. Cheese's Fun Pass combines repeat access, daily play allocations, and food discounts. Customers can choose a monthly membership with a 12-month minimum commitment or a separate two-month pass. For other LBEs, a membership could include a set number of weekday visits or a recurring social game night. This provides guests with a predictable entertainment expense and a reason to return.

However, the offer must fit the business. An attraction that requires an employee to guide every session has different costs than an arcade. Operators need to know how often members visit, when they visit, and what those visits cost. Membership terms should clearly state the full financial commitment.

Perhaps the biggest trap is mistaking more visits for more profit. A promotion can fill an otherwise quiet period. It can also offer a lower price to guests who would have visited anyway or shift customers from one day to another. Consider a simple hypothetical example. A $60 package that costs an additional $20 to serve leaves $40 to help cover rent, other overhead, and profit. That is useful business when the space would otherwise sit empty. But suppose the same customer would have purchased a $100 visit costing $25 to serve. The promotion has reduced the amount left over from $75 to $40. The offer is identical, but its effect on the business is very different.

Operators should look beyond attendance on promotion days. Are offers attracting new guests? Are existing guests coming more often, or simply paying less? What happens to food purchases, staffing needs, and business on other days? Do those guests return?

Keep the choices manageable, too. A long list of packages, restrictions, memberships, and overlapping discounts makes purchasing harder and creates more work for employees.

Start with a clearly defined, affordable offer and a premium experience with benefits guests can recognize. Train employees to deliver both, then evaluate the results before adding more.

The right balance will vary by market. Some locations can support substantial premium business, while others need a stronger emphasis on affordable repeat visits. Local demand and operating costs should determine that balance.

A successful barbell strategy gives guests an affordable reason to return and a worthwhile reason to spend more, whether for their usual evening out or a special celebration. Both should deliver an enjoyable experience and leave enough money behind to make serving those guests profitable.

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