Bowling Alley Investment Breakeven Revenue Analysis
2023/10/25 09:11:30
How long it will take to break even the investment on a bowling alley?
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Currently there are thousands of
bowling centers around the world. Let us take a bowling center in Beijing,
China as example (a small bowling center with 4 lanes bowling alley equpiment).
When we evaluate a country or a city’s living level, we would consider two main
indicators: GDP Per Capita and Engel’s Coefficient. In 2015, Chinese Engel’s
Coefficient is 30.6% and Beijing’s GDP Per Capita is 10500 USD. (You can evaluate your city’s living level according to
your city’s GDP Per Capita and local Engel’s Coefficient)
In Beijing, bowling game popularity is normal (Bowling sports in Beijing is
not prosperous in recent couple of years). The following is analysis of a 4
lanes bowling alley’s investment recovery.
Time
|
Price
(USD/hour)
|
Bowling
Alley Quantity
|
Play
Hours
|
Utilization
Ratio
|
Power
requirement (0.15USD per KWH)
|
Gross
Income (USD)
|
8:00-12:00
|
12
|
4
|
4
|
40%
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4*4*40%*4KW*0.15=3.84
|
76.8
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12:00-18:00
|
19
|
6
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60%
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4*6*60%*4KW*0.15=8.64
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273.6
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18:00-24:00
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32
|
6
|
80%
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4*6*80%*4KW*0.15=11.52
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614.4
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24:00-2:00
|
40
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2
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30%
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4*2*30%*4KW*0.15=1.44
|
96
|
|
|
|
|
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25.44
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1060
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Remark: One hour can play 5 to 6 bowling games.
The bowling alleys are available for 24 days in every month, the other 6 days
are for employee holiday and bowling center maintenance time.
Each month gross Income will be (1060-26 (Power cost))*24=24816 USD.
A 4 lanes bowling alley would need 3 employees.
1 waitress’s salary is 320 USD per month.
1 cleaner’s salary is 290 USD per month.
1 chief technician’s salary is 700 USD per month.
Bowling lane oil and cleaner: 1 gallon one day. 11 USD. One month 330 USD.
Rents: 0.7USD per square meter per day (Shopping Mall). 4 lanes bowling
center need 220 square meters.
0.7*30*220=4620 USD per month.
Bowling alley each month’s net Income is 24816-4620-320-290-700-330
=18556 USD.
Remark: There are also income from renting shoes, snap
food and beverage etc.
Moreover, in the very beginning the bowling center’s business may not so
good, thus let’s take the income as half, then the income shall be
18556/2=9278 USD.
It means you can break even point on the investment of 4 lanes bowling alley within 6
to 8 month.
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