Back in the 70s, everyone wanted to go to the roller rink—kids, teens, and even adults. Roller skating was the thing to do, and it was considered to be almost as hot as hitting up a disco. Unfortunately, the trend of roller skating started to die down by the middle of the decade and thinks started to get into a lull.
These days, roller rinks aren’t as popular as they once were. Finding one can be difficult, not to mention pricey. Many entrepreneurs who love skating are now thinking of bringing back roller rinks on a grander scale, but one question still remains. Are they even profitable?
Are Roller Rinks Profitable?
If you’re one of the many entrepreneurs contemplating giving a roller rink a try as a new business venture, it’s a good idea to take a step back for a moment. As far as businesses go, roller rinks are fairly difficult to start up, and even more difficult to keep up.
The costs alone are a major reason why it’s so hard to find a roller rink nearby. But, to further understand the profitability of roller rinks, it’s a good idea to take a look at the numbers and what people need to do in order to make them profitable.
How Much Does It Cost To Start Up A Roller Rink?
Depending on where you are, real estate will end up costing a really pretty penny. If you want to buy a roller rink that currently exists, you should expect to spend around $1,000,000 to $4,000,000 for the property and business alone.
If you’re willing to build your own rink, you will need to have a parking lot that is twice as big as the arena. From there, you will need to install a cement surface for people to skate on, as well as lockers, benches, guardrails, and more. This doesn’t take into account state department licensing or health department licensing.
Most people will incur an additional $30,000 or more in startup costs once they find a place they want to create a roller rink at. So, it’s safe to say that most people who want to own a roller rink may have a hard time getting the startup capital for it.
How Much Does A Roller Rink Need To Make Money?
On average, a roller rink needs a monthly income of $35,000 to be able to break even. That means that you will need more than $35,000 a month to make money. This means that, on average, you will need to bring in at least $1,166 per day.
How Do Roller Rinks Make Money?
Roller rinks have a variety of ways that they can help reach that ~$1,000 per day minimum, many of which tend to be somewhat surprising to people. Some of the most common ways they make money include:
- Entry Fees. This constitutes a large chunk of most rinks’ profits. After all, you need to pay to get in to most places.
- Skate Rentals. Many people don’t have their own pair of roller skates, even if they are avid skaters. Charging people $10 a pop for skate rentals means that you will be able to make ends meet fairly quickly in most situations.
- Drinks and Food. Most roller rinks have a refreshment stand where people are able to get something to eat while they skate. Snacks make a huge impact on a rink’s profitability, and are generally considered to be a must-have in any business plan. Some arcades even have a liquor license to help boost their sales.
- Skating Lessons. Whether it’s regular roller skating or hockey, people are willing to pay a premium price to learn how to skate well. Rinks know this, and make a point of offering this as a service.
- Video Games. Believe it or not, most skating rinks also double as local video game arcades. Though arcades often only bring in 50 cents to a dollar at a time, that money quickly adds up. The more expansive the arcade, the more likely it is that it will become a major attraction and larger part of the business plan.
- Skate Sales. If you have room for it, putting together a skate shop is a good idea. The markup on skating equipment is fairly high, so a single sale can be more than enough to make a difference in a single day.
- Birthday Parties. Many, if not most, roller rinks also offer birthday parties as a service for people who want to celebrate special occasions. It may seem hackneyed, but it is profitable enough to be worth the effort.
Why Is It So Hard To Profit From A Skating Rink?
With all the different ways that a skating rink can make money, it can be a little mind-boggling to know that many rinks struggle with turning a profit. The truth is that the reason it’s so hard to turn a profit deals with roller rink turnout.
Most roller rinks are only busy on Fridays and the weekends. During weekdays, most places will be totally empty—unless the rink is hosting a derby, hockey classes, or similar events. Even then, it can be hard to turn a regular profit because of the fact that roller skating simply isn’t that popular.
Is There Any Way To Maximize Your Chances Of Turning A Profit As A Rink Owner?
There’s no perfect formula to getting a roller rink to become profitable. If there was, there would probably be a lot more rinks around. However, there are some things business owners can do to make a roller rink become profitable year-round. These include:
- Using a lot of heavy advertising. The easiest way to get people to your door is to let them know that you’re around. Advertising online, in newspapers, and even using coupons on Groupon can help bring people to your door.
- Knowing your target audience. You can’t please everyone, so don’t try to make your rink ideal for everyone. Figure out who your target demographic is, and work towards them. Are you a punk-rock derby rink, or a more family-friendly one? Gearing your rink towards one demographic usually works better than trying to please everyone.
- Building at least 40 miles away from other rinks. Though this might not be necessary in areas with high population densities, most roller rinks are few and far between. This is because there just won’t be enough people to support two roller rinks. The competition alone could tank both venues really quickly.
- Opting for a place with cheap rent. The majority of profitable roller rinks pay $4,000 a month or so in rent. Obviously, this isn’t doable if you want to open a rink in Los Angeles or New York City, but in most suburban areas, it can be done.
- Not relying on roller skating alone. We’ve already touched on how many profitable rinks also have an arcade attached to them, but we haven’t gone into depth about why. Most roller rinks nowadays act as entire entertainment zones, often offering more than one type of sport. Diversification brings in more people, after all.
Should Owning A Roller Rink Be Your First Business?
Absolutely not. Owning a roller rink is not a business that is easy to do, nor is it one that has an easy break-even point. If you are thinking of putting together your first business, then you really shouldn’t consider getting a skating rink.
Having a roller rink means that you are going to be facing a lot of difficulties that aren’t present in most other businesses. The relatively low turnout remains the biggest hurdle, but it’s not only that issue that makes it a difficult business to work with.
Roller skating rinks require a lot of proactive maintenance and also require a staff of people who can care for them. If you aren’t used to managing people or have little idea of what it takes to maintain a rink, it’s not going to be an easy fit for you.
Are Roller Rinks Doomed To Fail?
Though they aren’t the easiest businesses to work with, there’s nothing saying that skating rinks are doomed to fail. People still enjoy roller skating and will actively seek out nearby rinks to skate at. In fact, it’s safe to say that roller rinks will be around as long as roller skating exists—and skating’s not about to be wiped out from history anytime soon.
The overall gist is that roller rinks can be profitable, but it’s not easy to pull a profit from them. Someone who has a lot of business savvy, though, can make it possible. It’s all about how you approach the opportunity, just like anything else in life.
