GF Issue 54

of franchising experience has taught us that what may work in the U.S., Mexico, or the Kingdom of Saudi Arabia may not work in another country. Third, the hallmark of our franchising model is flexibility . We’re willing to adapt our concept as long as it lives up to our standards of kid-friendly family entertainment in a safe environment. We understand that the size, entertainment offering, and food at each location may differ. That is why you may find a zipline in Egypt, a climbing wall in Saudi Arabia, and a trampoline in Mexico. It’s no different when it comes to food. Our fresh, handmade pizza is our hallmark menu offering, but pizza toppings or sides change by region along with special limited-time menu items. Next, a significant driver of foot traffic and revenue is the birthday program, attracting kids who often experience their first visit at Chuck E. Cheese through a birthday party which creates repeat visits. Lastly, Chuck E. Cheese’s unique flexibility in local sourcing sets it apart from other international brands that rely on direct sourcing, which can drive up construction and ongoing operating costs. While maintaining a safety net of U.S.-based suppliers, the brand recognizes the significant cost advantages of sourcing locally. Chuck E. Cheese actively assists in selecting suppliers that align with brand specifications for food ingredients, equipment, and construction materials. Through this approach, most items can be sourced in-country or regionally, ensuring the quality meets the brand’s expectations. What is on the horizon for Chuck E. Cheese? Exciting developments are underway this year as Chuck E. Cheese plans to open new locations in Egypt and Kuwait, marking the brand’s debut in Africa and expanding its footprint further in the Middle East and Latin America. The forthcoming Egyptian location will be the brand’s inaugural venture into Africa, offering an action-packed lineup of games, including a zipline, soft play, a climbing wall, and a trampoline. Meanwhile, the Kuwait location is space-efficient, featuring the traditional mix of games and soft play, showcasing the brand’s flexibility in adapting to different formats, from standalone to inline locations. Looking ahead, we just announced a new development agreement in Australia. We see this as an untapped market where we can focus on tailoring the Chuck E. Cheese experience to the unique preferences of Australians. We plan to introduce a reimagined Chuck E. Cheese kid-friendly experience that seamlessly blends our classic offerings with cutting-edge interactive play. system, video walls, and back of the house AI technology built around guest engagement have not only enhanced the guest experience but also facilitated our marketing teams to provide unique promotional offers. Additionally, technology has streamlined the ordering process with video menu boards promoting offers and making price changes more dynamic. Behind the scenes we’ve launched tablet-based training materials and operational manuals that can be easily translated and localized by market. How are you driving your efforts to expand around the world? Rick Raison, manager, international development: To drive international expansion, Chuck E. Cheese has identified key markets in Asia and Europe as a focus for 2024. Those markets are a logical choice due to a high percentage of kids under the age of 14, the growing middle-class, and a lack of high-quality kids-centric entertainment. China and India definitely have the population advantage, but we see markets throughout Europe lacking our mix of entertainment and food options which will be attractive for growth. We also have a strong differentiator: our intellectual property. Chuck E. Cheese is not just our namesake - there is a large repetiteur of audio-visual content that comes with the brand which provides ample opportunity to expand the IP outside of the physical concept. We have even established our own YouTube channel to promote the brand internationally which includes exclusive branded content. What has contributed to the franchise’s success? First, we find good partners with a track record of success in food and beverage, retail, real estate, or entertainment. We want long-term relationships, with partners committing to multiple locations or a master franchise relationship in each market. Second, we listen to and trust that our partners know the nuances of their market the best. We enter each market with an open mind on everything from menu items and operating hours, to the very iteration of the concept. Decades ΋©e haŪe a strong àiƅerentiator͢ our intellectual łrołertű͠ hucė '͠ heese is not Ĕust our namesaėeΌ Franchise Overview Chuck E. Cheese Established: 1977 Total number of locations: 569 Available markets: Worldwide Liquidity requirement: $800,000 in available liquid assets is our threshold for a partner to be considered Contact: Rick Raison, International Development rick.raison@ cecentertainment.com chuckecheese.com GLOBAL FRANCHISE.COM 45 CHUCK E . CHEESE