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Key Takeaways
- Due to $69,000 in monthly fixed costs, operators must aggressively track utilization to hit the projected break-even point in February 2026.
- Maximizing Revenue Per Available Session Hour (RevPAS), targeted above $350, is essential for optimizing yield across high-demand and low-demand scheduling slots.
- Achieving sustainable growth requires shifting the revenue mix to favor high-margin Programs, which should account for over 30% of total income.
- While initial profitability is thin (5% EBITDA margin in 2026), sustained success depends on controlling variable costs and growing EBITDA toward the $124 million target by 2030.
KPI 1 : Revenue Mix Percentage
Definition
Revenue Mix Percentage shows you exactly where your money originates across different activities. It separates income from Public Skating, Group Events, and structured Programs. This metric is vital because it tells you if you're relying too much on low-margin, transactional sales versus high-value, recurring services.
Advantages
- Pinpoints the most profitable revenue streams.
- Helps manage risk by diversifying income sources.
- Guides capital allocation toward higher-return activities.
Disadvantages
- Doesn't show absolute revenue dollars, only proportions.
- Can hide underlying operational inefficiencies in one segment.
- A high percentage from Programs requires consistent enrollment quality.
Industry Benchmarks
For recreational facilities, a mix dominated by walk-in Public Skating often yields lower overall margins. You should aim for Programs—like lessons or structured leagues—to contribute at least 30% of your total revenue. This signals a stable, predictable income base that isn't solely dependent on weather or weekend traffic.
How To Improve
- Mandate that all new Group Events include a Program upsell offer.
- Price Public Skating sessions to cover variable costs only; push margin elsewhere.
- Review the Program enrollment funnel monthly for drop-off points.
How To Calculate
To find the percentage for any revenue stream, divide that stream's total income by your overall revenue for the period. You must track this for Programs specifically to hit your target.
Example of Calculation
Say your arena generated $100,000 in total revenue last month. If $35,000 of that came directly from enrollment fees and recurring lesson packages, here’s the math.
Since 35% is above the 30% goal, that revenue mix is healthy for the month.
Tips and Trics
- Track the mix by week to catch negative trends early.
- Isolate Program revenue before factoring in skate rental add-ons.
- If Group Events spike revenue one month, don't mistake that for Program growth.
- Tie instructor utilization rates directly to Program revenue percentage.
KPI 2 : Revenue Per Available Session Hour (RevPAS)
Definition
Revenue Per Available Session Hour (RevPAS) tells you how much money you pull in for every hour the ice is actually ready to be used. This metric is vital because your primary asset—the rink surface—has fixed capacity. You need to know if your scheduling and pricing are maximizing the earning potential of that physical space.
Advantages
- Directly ties utilization to top-line revenue performance.
- Helps justify premium pricing for high-demand time slots.
- Drives operational focus toward maximizing revenue-generating hours.
Disadvantages
- It ignores cost structure; a high RevPAS might still lose money if utility costs are too high.
- It doesn't differentiate between high-margin program revenue and low-margin public skate revenue.
- It can be skewed by large, infrequent private bookings if not tracked carefully.
Industry Benchmarks
For premium entertainment venues with high fixed costs, aiming for $350+ per available hour is a solid starting goal. If you are running primarily public sessions with low ancillary spend, you might see figures closer to $150 to $200. Hitting the target means you are effectively monetizing your peak times and filling off-peak slots.
How To Improve
- Increase pricing for public skating during weekend prime time slots.
- Aggressively push high-margin skating and hockey programs to meet the 30%+ revenue mix target.
- Minimize non-revenue generating downtime by scheduling maintenance around low-demand hours.
How To Calculate
You calculate RevPAS by taking your total revenue for a period and dividing it by the total number of hours the rink was scheduled and available for use during that same period. This is a weekly review item, so keep the timeframes tight.
Example of Calculation
Let’s say you generated $24,500 in total revenue last week from tickets, rentals, and lessons. If your facility was open and ready for business for 70 hours that week, here is the math to see if you hit your goal.
In this example, you hit the $350+ target exactly. If you had only generated $21,000, your RevPAS would be $300, signaling a need to review pricing or utilization immediately.
Tips and Trics
- Segment RevPAS by session type: public skate vs. league ice time vs. lesson time.
- Track available hours strictly; if the Zamboni breaks down for two hours, those hours are not available.
- Cross-reference this metric with Ancillary Revenue Per Visit to ensure high-value hours also drive high spend.
- Defintely calculate a Net RevPAS by subtracting the hourly utility cost (approx. $22,000 base divided by total hours) to see true hourly profitability.
KPI 3 : Operating Expense Ratio
Definition
The Operating Expense Ratio (OER) tells you what percentage of your sales revenue goes toward covering your day-to-day running costs. This ratio bundles your fixed costs, variable costs, and all employee wages together. Keeping this number below 90% is essential because it directly dictates your profitability; anything higher means you’re losing money before accounting for debt service.
Advantages
- Shows operational efficiency at a glance.
- Flags cost increases relative to sales growth.
- Helps manage overhead absorption effectively.
Disadvantages
- Hides the mix between fixed and variable spending.
- Can be misleading if revenue is temporarily low.
- Doesn't account for Cost of Goods Sold (COGS) from concessions.
Industry Benchmarks
For a recreational facility aiming for thin margins, a target OER below 90% is the floor, supporting only a 5% EBITDA margin in Year 1. If you manage costs tightly and maximize ancillary revenue, you might see ratios dip into the 75% range, which is healthier. If your ratio consistently runs above 95%, you are defintely losing money operationally.
How To Improve
- Increase revenue per available session hour (RevPAS) above $350.
- Control base utility costs, aiming below $400 per visit.
- Optimize wage scheduling to match peak demand precisely.
How To Calculate
You calculate the Operating Expense Ratio by summing all operational costs—fixed overhead, variable expenses, and wages—and dividing that total by your gross revenue for the period. This gives you the percentage of revenue consumed by operations.
Example of Calculation
Say your monthly fixed costs, including the base $22,000 utility bill, are $50,000. Add $10,000 in variable costs and $40,000 in wages, totaling $100,000 in operating expenses. If total revenue for the month hits $115,000, you calculate the ratio like this:
In this scenario, the ratio is 87.0%, which is below the 90% target, meaning you are on track to hit your 5% EBITDA margin.
Tips and Trics
- Review this ratio monthly to catch cost creep early.
- Track base utility expenses ($22,000/month) separately as a fixed cost.
- If revenue dips, fixed costs will quickly push the ratio over 90%.
- Focus on driving high-margin program revenue to improve the denominator.
KPI 4 : Ancillary Revenue Per Visit
Definition
Ancillary Revenue Per Visit measures the non-admission money you pull from every guest who steps inside. It shows how well you monetize skate rentals, food and beverage (F&B), and Pro Shop sales per person. For Glacier Glide Arena, the management team needs to see this number hit $500+ every week to validate the premium experience strategy.
Advantages
- Directly measures success of upselling efforts beyond the ticket price.
- Increases overall profitability because these sales often carry higher gross margins than admission fees.
- Creates a more resilient revenue base, less dependent on fluctuating public skating attendance numbers.
Disadvantages
- The $500 target is extremely high and might be skewed by large, infrequent Pro Shop purchases.
- Requires tight tracking across three separate operational points: rentals, cafe, and retail.
- If F&B costs are high, revenue might look good but contribution margin could be thin.
Industry Benchmarks
In standard recreational venues, ancillary spend often sits between 15% and 40% of total revenue. Hitting $500 per visit suggests Glacier Glide Arena is operating more like a destination resort than a local rink, defintely requiring high-value add-ons like premium instruction packages or high-end skate sales. Benchmarks help you see if your operational focus is correctly placed.
How To Improve
- Mandate rental packages that include a free small F&B item to drive initial spend.
- Introduce tiered F&B options, pushing high-margin items like specialty coffee or hot chocolate.
- Use Pro Shop inventory strategically; place high-margin accessories near rental counters for impulse buys.
How To Calculate
To find this metric, total up all non-admission revenue streams and divide that sum by the total number of people who paid for entry or a session.
Example of Calculation
Say you track 500 total visits in one week. During that time, you brought in $15,000 from skate rentals, $5,000 from the cafe, and $10,000 from the Pro Shop. The total ancillary revenue is $30,000.
In this example, the result is $60.00 per visit, which is far short of the $500+ target, showing significant room for aggressive pricing or volume increases in ancillary sales.
Tips and Trics
- Track rental return rates daily to spot bottlenecks or lost equipment costs.
- Segment F&B sales by time of day to optimize staffing and inventory levels.
- Analyze Pro Shop sales against program enrollment numbers for correlation.
- Set minimum transaction values for loyalty program rewards tied to ancillary spend.
KPI 5 : Program Enrollment Retention
Definition
Program Enrollment Retention shows what percentage of students sign up again when the next session starts. This metric is vital because your programs are targeted to bring in 30%+ of total revenue, meaning repeat business directly impacts profitability. If students don't return, you're constantly paying to acquire new ones.
Advantages
- Predicts future program revenue stability.
- Indicates program quality and customer satisfaction.
- Lowers Customer Acquisition Cost (CAC) for programs.
Disadvantages
- Doesn't capture why students leave (satisfaction vs. scheduling).
- Can be skewed by seasonal demand spikes, like summer camps.
- It’s a lagging indicator; it won't flag immediate cash flow problems.
Industry Benchmarks
For specialized, recurring instructional services like skating lessons, a good benchmark is usually 70% to 85% retention. Hitting your 75%+ target puts Glacier Glide Arena in the top tier for customer loyalty in recreational instruction. Falling below 65% signals serious issues in program delivery or scheduling alignment.
How To Improve
- Implement early-bird re-enrollment discounts 30 days before session end.
- Survey departing students within 7 days of session completion to fix pain points.
- Ensure instructors clearly communicate next-level curriculum progression.
How To Calculate
You calculate this by taking the number of students who signed up for the next period and dividing it by everyone who was eligible to sign up. This gives you the percentage of your existing base that sees enough value to pay again.
Example of Calculation
Say your Fall Hockey League had 200 registered players who were eligible to move up to the Winter League. If only 150 of those players registered for the Winter League, here is the math to see your retention rate.
This result hits your minimum target exactly, but you’d want to see higher numbers to build a buffer.
Tips and Trics
- Track retention by program type (e.g., beginner vs. competitive hockey).
- Review this metric quarterly, but monitor early sign-up rates monthly.
- Segment churn by reason code gathered during exit surveys; defintely look for patterns.
- Tie instructor performance metrics to their class retention rates for better accountability.
KPI 6 : Utility Cost Per Visit
Definition
Utility Cost Per Visit (UCPV) measures how much of your fixed electricity bill lands on each customer who steps onto the ice. For an ice skating rink, this metric is crucial because refrigeration is a massive, non-negotiable operating expense. You need enough volume to dilute that high fixed cost effectively.
Advantages
- Shows the direct impact of volume on fixed overhead absorption.
- Forces management to focus on filling available ice time slots.
- Helps justify capital expenditure on energy-saving refrigeration systems.
Disadvantages
- It ignores the timing of usage; a busy Saturday costs the same in base electricity as a slow Tuesday.
- It doesn't account for variable utility use from concessions or lighting.
- If you are running at very low volume, this number becomes meaningless noise.
Industry Benchmarks
For energy-intensive recreation venues, utility costs are often a top-three operating expense after rent/mortgage and payroll. While specific benchmarks vary widely based on chiller efficiency and climate, you must compare your UCPV against other indoor rinks in similar climates. If the industry standard is closer to $50 per visit, your target of under $400 suggests you have a lot of room to grow volume before this cost becomes a major constraint.
How To Improve
- Aggressively fill off-peak hours with high-margin programs to spread the $22,000 base cost.
- Implement energy management systems to optimize chiller run times during low-traffic periods.
- Bundle public skate sessions with required skate rentals to increase overall transaction value without increasing base utility load.
How To Calculate
You calculate Utility Cost Per Visit by taking your total fixed monthly electricity expense and dividing it by the total number of people who used the facility that month. This metric tells you the minimum cost you must cover per person just to keep the ice frozen. You should review this figure monthly, as specified in your KPI tracking schedule.
Example of Calculation
If your base electricity bill for refrigeration and facility power is fixed at $22,000 for the month, and you served 100 total visits, your cost per visit is high. To hit your target of keeping this cost below $400, you need to know the minimum volume required. Here’s the quick math to determine the required volume:
If you only serve 55 visits, you hit the $400 cost ceiling. If you serve 1,000 visits, the cost drops to $22.00 per visit. Honestly, hitting 55 visits per month is too low a bar for a facility this size; you defintely need to aim for thousands.
Tips and Trics
- Track the $22,000 electricity cost against the same month last year to spot efficiency drift.
- Segment visits: Program students should have a much lower UCPV than public skaters.
- Use the required visit calculation ($22,000 / Target UCPV) as your absolute minimum daily traffic goal.
- If you are running a special event, track the incremental utility cost versus the revenue generated.
KPI 7 : Cash Runway to Minimum Cash
Definition
Cash Runway to Minimum Cash tells you exactly how many months you can operate before your bank account hits a pre-set safety floor. For Glacier Glide Arena, this floor is $133,000, a level management has targeted to maintain until September 2026. You must maintain a buffer of 12+ months runway against this minimum to avoid emergency financing.
Advantages
- It sets a hard deadline for fundraising milestones or cost reduction mandates.
- It forces daily scrutiny of the net cash burn rate, not just monthly profit.
- It ensures you meet any minimum cash covenants set by lenders or investors.
Disadvantages
- The calculation is only as good as your forecast for variable costs, like utilities.
- A long runway can hide operational inefficiencies if revenue growth stalls.
- It doesn't account for capital expenditures needed before September 2026.
Industry Benchmarks
For established entertainment venues, a 6-month runway is often considered the minimum operational safety net. However, because you've set a specific floor of $133,000 tied to a future date, targeting 12+ months is prudent. This buffer protects against the high fixed costs associated with maintaining the ice surface.
How To Improve
- Drive high-margin Programs revenue to exceed 30% of total sales.
- Aggressively manage the Operating Expense Ratio, keeping it under 90%.
- Increase session density to push RevPAS past $350 per hour.
How To Calculate
You find the runway by taking your current cash, subtracting the required minimum cash balance, and dividing that by your average monthly net burn rate (cash outflow). The net burn is what you lose each month after all operating income is accounted for.
Example of Calculation
Say you start January with $450,000 in the bank, and your minimum required balance is $133,000. If your forecast shows you are losing an average of $15,000 pe
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Frequently Asked Questions
Fixed costs dominate, specifically the $32,000 monthly facility lease and $22,000 monthly base utilities These high costs mean the rink must hit its break-even point, projected for February 2026, quickly;