Competitive advantage

The competitive socialising market has experienced remarkable growth in recent years. This emerging sector has successfully tapped into the changing preferences of consumers, who are seeking engaging and immersive experiences beyond traditional social gatherings.

The appeal of competitive socialising lies in its ability to combine entertainment, friendly competition, and social interaction in a vibrant atmosphere. These venues often feature stylish interiors, on-trend themes, and a variety of food and beverage options, creating an all-encompassing experience that goes beyond simply playing games. This trend has been embraced by people of all ages and backgrounds, as it offers a fresh and engaging way to spend time with friends, celebrate special occasions, and host team-building events for companies.

In theory, a well-maintained and successful competitive socialising offer can bring numerous benefits to a commercial/mixed-use development including direct income generation and, through increased footfall and dwell time, improved performance of neighbouring tenants. Diversifying the tenant mix creates potential to attract other new occupiers and presents a point of difference that provides a competitive advantage.

These opportunities are not always realised. Pragma has recently experienced working on a UK shopping centre which had recently secured the occupancy of a number of competitive socialising occupiers to augment its historic retail-only offer. Their addition successfully attracted a different audience that had previously never visited the centre, and drew increased footfall at weekends. However, the impact on weekday footfall was limited, and users rarely utilised the existing retail offer, creating little tangible improvement to performance for existing occupiers.

Landlords need to consider a number of factors when deciding to either introduce a new competitive socialising offer or increase the provision of competitive socialising within a scheme.  An oversaturated market can lead to intense competition and potential difficulties in attracting a sufficient customer base, impacting occupier performance viability. Many occupiers make a significant degree of revenue from food and beverage sales – overprovision can lead to low sales and high wastage, as well as negatively impacting the performance of standalone food and beverage occupiers in proximity. Placement of the unit needs to be carefully considered. Such units often take cheaper, non-standard space in sub prime locations within the scheme, due to their need for significant floorspace and the adaptability of concepts. However, to realise some of the potential benefits, competitive socialising ideally needs to dovetail with, and be in close proximity to, retail and F&B brands that also appeal to target user groups. Finally, landlords need to consider the long-term appeal of the offer and its ability to maintain performance year on year. A good competitive socialising offer needs to have the flexibility to react and adapt to changing market dynamics, so that consumer interest is maintained via provision of the latest concepts, whilst the core F&B offer continues to drive profit.

Two new concepts which have recently opened in London:

F1 Arcade
Located in central London, the F1 Arcade at at One New Change has quickly become popular. The venue's combination of simulated Formula 1 racing, cocktails, and food has proven to be a winning formula for racing aficionados and casual gamers. Equipped with 60 state-of-the-art racing simulators – complete with authentic steering wheels, pedals, and high-definition screens – F1 Arcade provides an immersive and realistic experience that transports players onto famous racetracks around the world.

F1 Arcade's operating model can serve large groups effectively and efficiently. During peak times, large groups are usually split into teams and allocated 2 or 3 simulators, where players will take turns competing with each other whilst other players can spectate and enjoy the food and drink offer. By integrating playing with spectating, F1 Arcade provides an effective way of providing value-for-money, despite comparatively limited time ‘behind the wheel’.

The impact of F1 Arcade on the performance of other occupiers within One New Change is to be determined – the lack of complementary offers in close proximity may be lessening the potential impact that an operator such as F1 Arcade can provide. However, the inclusion of F1 Arcade is a step in the right direction for the scheme, given its appeal to city workers and its uniqueness, creating a reason to visit the scheme for those that live further away, potentially assisting in drawing a weekend audience.

Fairgame
Fairgame is a new 20,000 sq. ft entertainment venue in Canary Wharf, London, that combines classic fairground games with modern technology, street food, and three bars serving cocktails and craft beer. This venue has been fully booked during peak times across the week since opening in October 2022. In contrast to typical arcade formats, which are mainly pay as you go, Fairgame charges a fixed ticket price of £15 for visitors to experience playing all 9 available games twice within a 75-minute time limit. Through utilising RFID technology, players can log scores and track leader boards. Fairgame has also been able to secure popular London street food vendors, including Burger & Beyond, Rudy's Neapolitan Pizza, and Dos Mas Tacos.

When executed effectively, competitive socialising not only has the potential to bring a new layer of excitement to a scheme but to rejuvenate outdated commercial developments. When choosing a competitive socialising concept to implement, several key considerations should inform decision-making including; market demand, venue size and layout, target audience, scalability, flexibility and integration with other amenities. By understanding the local market, catering to the target audience, ensuring a suitable venue layout, and considering long-term scalability, landlords can select a competitive socialising concept that enhances the overall appeal and success of the development.

Mukhriz Mustamir