08/04/2019
Some news about the arcade, likely bad but with luck it can be turned around.
The arcade had a rough start, but it picked up after a bit making a little money after rent as we approached having maximum amount of games. But we recently got a rent increase which starts in September. After running the numbers it is barely sustainable with the new rent amount.
The reason is because the person that brings in the games does a 50/50 split which is fairly standard, so we only get half or less of what the games make. With the new rent increase, we attempted to renegotiate the terms so it was sustainable to a 56/44 split. Basically, it just brings it back to the levels that were before based on past receipts. The response to the proposal ... the person that brings the games called our landlord about rental rates in our location. Our landlord being a person of integrity called me back telling me about the request and saying he felt uncomfortable responding to them.
Drama aside ... We have very few options.
1: We manage to come to an agreement with the current person that brings the games. Possible but seems unlikely at this point.
2: We find someone else that is willing to go with a 56/44 split so we are at a level we were before, making very little money but just enough to be justifiable to keep it going for the community. without the risk of losing money after September.
3: We are able to find an angel investor for a loan to buy our own games. Possibly from the current owner of the games that are there or from elsewhere. For such a person we would show the last 10 receipts so they have a good idea of the track record of the arcade which is half or likely less of what it actually generates due to the split. With the past track record, it is a relatively safe investment. I have not yet priced out what it would cost to purchase games but will be researching that next.
4: If 1-3 don't happen it would mean we would shut down. It would be too much of a gamble doing a 50/50 split with the new rent amount.
If you know anyone that can fulfill 2 or 3 please have them contact us ASAP. I can be found at The Game Getaway.
It sounds cheesy and a line of BS but we really do keep it going for the community, for the people of Folsom to have fun. Unfortunately, I am not wealthy and can't take the loss. But we do what we do because of Old Folsom and Folsom in general needs a place for family fun. There isn't a lot out there but that is why we kept it going this far.