Guangzhou Fanhong Animation Technology Co., Ltd.

How to Start an Arcade Business: A Guide for New Investors

2026-Aug-27 Visits:15 Leave a message

Starting an arcade business involves more than purchasing a few machines and opening the doors.

A successful arcade project requires planning, including location selection, customer positioning, equipment selection, layout design, payment systems, prize management, and long-term operations.

For new investors, creating a clear plan before purchasing equipment can help reduce unnecessary costs and make better use of the available space.

Define Your Arcade Business Model

The first step is deciding what type of arcade or entertainment business you want to create.

Possible formats include:

  • Traditional arcade

  • Claw machine store

  • Family entertainment center

  • Prize game store

  • Shopping mall entertainment area

  • Mixed amusement venue

The business model will influence the equipment you need and the amount of space required.

Choose the Right Location

Location is an important part of an arcade project.

Potential locations may include:

  • Shopping malls

  • Commercial streets

  • Entertainment centers

  • Tourist areas

  • Family activity areas

  • Retail complexes

When evaluating a location, consider:

  • Customer traffic

  • Target customer group

  • Nearby businesses

  • Available space

  • Rental costs

  • Accessibility

A location with high traffic may not always be the best choice if the customer group does not match the entertainment concept.

Understand Your Target Customers

Before selecting machines, think about who will use the arcade.

Your customers may include:

  • Children

  • Teenagers

  • Families

  • Young adults

  • Tourists

  • Casual shoppers

Different customer groups may be attracted to different types of equipment.

For example, families may prefer a wider range of machines, while a dedicated claw machine store may focus more heavily on prize machines.

Select the Right Arcade Equipment

Equipment selection should be based on your location and target customers.

Possible equipment categories include:

  • Claw machines

  • Prize machines

  • Coin pusher machines

  • Scissor machines

  • Capsule toy machines

  • Arcade games

  • Self-service entertainment equipment

Instead of selecting machines individually, consider how they will work together inside the venue.

Plan Your Arcade Layout

A good layout should support both customer movement and machine visibility.

Important considerations include:

  • Entrance placement

  • Main customer routes

  • Machine zones

  • Player space

  • Prize refill access

  • Maintenance space

  • Safety routes

Different equipment types can be organized into separate zones to create a clearer customer experience.

For example, claw machines can be grouped together, while coin pushers and arcade games can be placed in different sections.

核气捣蛋_01.jpg

Choose a Payment System

The payment system should match the operating environment.

Possible options include:

  • Coins

  • Tokens

  • Cards

  • Cashless payment systems

For larger projects, using a consistent payment system across multiple machines can simplify management.

Before purchasing equipment, confirm that the selected machines are compatible with your chosen payment method.

Plan Your Prize Strategy

Prize selection is important for claw machines and other prize equipment.

Consider:

  • Product cost

  • Prize size

  • Customer preferences

  • Refill frequency

  • Display appearance

Prizes should be suitable for the target customer group and compatible with the selected machines.

Consider Custom Branding

Custom arcade machines can help create a recognizable venue.

Customization may include:

  • Brand logo

  • Cabinet colors

  • Graphics

  • LED lighting

  • Machine themes

Using consistent designs across multiple machines can create a stronger overall visual identity.

图层 1.png

Work With an Arcade Equipment Manufacturer

For new investors, working with an experienced manufacturer can simplify equipment selection.

A manufacturer may be able to provide:

  • Product recommendations

  • Equipment selection

  • Customization

  • Arcade layout planning

  • Production

  • Packaging

  • Shipping support

  • Technical assistance

Providing your floor plan and project requirements can help the supplier recommend suitable equipment.

Fanhong Arcade Factory

Fanhong Arcade Factory is an arcade equipment manufacturer based in Guangzhou, China.

The factory provides commercial equipment for different entertainment projects, including claw machines, prize machines, coin pusher machines, scissor machines, capsule toy machines, arcade games, and other amusement equipment.

Fanhong supports OEM and ODM customization and can assist with equipment selection and project planning.

If you are planning to start an arcade business, contact us to discuss your available space, target market, equipment requirements, and customization needs.

WhatsApp: +86 19928309481
Email: Fanhong668@gmail.com

图层 1.png