How Much Does It Cost To Open An Arcade? $545K CAPEX Plan
You’re pricing a public arcade before signing a lease, so separate fixed assets from the total cash needed to open and survive the early ramp-up period This arcade startup cost breakdown uses a first-year model with $545,000 in CAPEX, a $512,000 minimum cash need by Month 6, and breakeven in Month 2 These are researched planning assumptions, not vendor quotes, lease terms, or guaranteed pricing
Calculate Fuding Needs
Startup cost summary
This table summarizes Arcade startup equipment and opening cash needs, split between CAPEX and excluded working capital.
Highlighted CAPEX$495,000Base planning example
Excluded cash needs$512,000Outside CAPEX total
Funding need$1,007,000CAPEX + excluded cash needs
Cost Category
Base Estimate
Main Cost Driver
CAPEX Calculator
Arcade Game Machines
$250,000
Machine count, mix, and install scope
Yes
Venue Build-Out Renovation
$150,000
Leasehold improvements and space fit-out
Yes
Kitchen Bar Equipment
$40,000
Food and beverage equipment package
Yes
Furniture Fixtures
$30,000
Seating, counters, and guest-area fixtures
Yes
Sound Lighting System
$25,000
Audio coverage and venue lighting scope
Yes
Working Capital Reserve
$512,000
Payroll, rent, utilities, marketing, and debt service before cash flow steadies
No
Estimate Startup Costs with Calculator
Startup CAPEX Calculator
This estimates capitalized startup assets only for an arcade venue.
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CAPEX limits This calculator covers only capitalized startup assets. It excludes rent deposits, payroll runway, inventory, debt service, working capital, launch marketing, insurance premiums, and other non-CAPEX funding needs.
Does the Arcade model show startup CAPEX?
Screenshot shows Arcade CAPEX tab: startup costs, timing, amounts, and depreciation/amortization. Open the Arcade Financial Model Template and review assumptions.
Screenshot highlights
$545k CAPEX schedule
Month 1-7 timing
Runway and financing
Compare 3 Startup Cost Scenarios
Scenario table
Arcade costs swing with machine count, build quality, and event space. Lean trims equipment and cash needs; Full adds new machines, stronger redemption systems, and a deeper reserve.
Lean, Base, and Full launch cost comparison
Scenario
Lean LaunchSmall neighborhood arcade
Base LaunchBalanced arcade
Full LaunchRedemption-heavy family entertainment arcade
Launch model
Start with fewer machines and a lighter fit-out to keep upfront spend and cash burn down.
Use the model case with a balanced mix of games, food, events, and support space.
Build a larger venue with more new machines, stronger redemption play, and more room for events.
Typical setup
Use more used equipment, a simpler buildout, lower redemption intensity, and a tighter working capital cushion.
Plan for $545,000 CAPEX, $250,000 in machines, $150,000 in buildout, and Month 2 breakeven.
Use higher-grade buildout, a deeper redemption setup, expanded event capability, and a larger cash reserve.
Cost drivers
Used game machines
lighter buildout
lower redemption setup
tighter cash reserve
New game machines
venue buildout
redemption system
event setup
opening cash
More new machines
stronger redemption setup
larger event space
higher buildout quality
deeper reserve
Planning rangeCAPEX only
Below base capexLower cash need
$545,000Core launch
Above base capexHigher cash need
Best fit
Fits founders who want a small neighborhood arcade and can manage a lean opening plan.
Fits operators who want a balanced arcade with a clear base case and modeled cash needs.
Fits teams aiming for a redemption-heavy family entertainment arcade with broader revenue upside.
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Planning note: These ranges are researched planning assumptions from the model, not vendor quotes. Use them to compare launch scale, cash needs, and risk.
How much money do you need to open an arcade?
To open an Arcade, plan on a $512,000 minimum cash need by Month 6, not just the game equipment budget; the researched base case includes $545,000 in CAPEX for long-lived assets. For growth planning, What Is The Main Goal For Arcade To Achieve In Its Growth Strategy? ties directly to whether first-year demand can support 20,000 game sessions, 15,000 F&B transactions, and 50 event bookings.
Funding Need
$512,000 minimum cash need by Month 6
$545,000 CAPEX base case
Working capital covers opening and ramp-up
CAPEX buys long-lived venue assets
Main Cost Drivers
Location size and lease terms
Used versus new machines
Machine count and redemption intensity
Deposits and cash reserve
How do you fund an arcade business?
To fund an Arcade, show lenders and investors the full startup stack: $545,000 CAPEX, a minimum $512,000 cash cushion by Month 6, and separate debt service from equipment spend. The base model says the business reaches Month 2 breakeven, with 27-month payback, 0.06 IRR, 403 ROE, and $206,000 in Year 1 EBITDA.
Lender case
Show CAPEX timing clearly
Separate debt service from equipment
Include rent and payroll
Show cash runway by month
Investor case
Model game revenue and F&B
Include events and prize costs
Test utilization and pricing
Keep a cash cushion for Month 6
How much do arcade machines cost?
For Arcade, the base model sets aside $250,000 for arcade game machines from Month 2 through Month 4. The real cost moves more with machine mix than with one flat average, because racing simulators and redemption-heavy games use more capital and floor space. So the clean way to budget is by user-entered counts and average costs, not by guessing one price per machine.
Cost drivers
Video cabinets set the base mix.
Claw machines add prize-floor demand.
Air hockey uses less capital per unit.
Ticket games support repeat play.
Budget check
Racing simulators need more space.
Redemption machines drive higher spend.
Sports games round out the floor.
$250,000 is the base machine budget.
Key Takeaways
Arcade machines and buildout drive the biggest upfront cash.
Cashless, redemption, and POS systems are not optional.
Licenses, insurance, and permits vary by location.
Prizes, payroll, and launch marketing need working capital.
Arcade Core Five Startup Costs
Arcade Game Machines Startup Expense
Machine Budget
$250,000 is the base-model spend for arcade game machines, and it lands in Months 2 to 4. This is the largest physical asset line, covering video cabinets, redemption games, crane machines, sports games, air hockey, simulators, shipping, installation, parts, and maintenance readiness.
Build the Mix
Use the total, not unit prices. The calculator should split $250,000 by machine count, used-versus-new mix, redemption share, and expected revenue per machine. Ask for quotes that include freight, setup, and spare parts, so the opening budget matches the real floor plan.
Count each cabinet type.
Separate used from new.
Match mix to revenue.
Cut Waste
Keep the spend tight by buying only machines that can earn fast, and by watching downtime risk on used units. Do not strip out shipping or installation; those are part of the $250,000 base. The hidden cost is weak uptime, because idle cabinets hurt cash flow fast.
Buy for revenue, not floor fill.
Keep spare parts on hand.
Track uptime from day one.
Cash Timing
Months 2 to 4 are the squeeze point, since machines must be ordered, delivered, and installed before traffic fully builds. Tie each cabinet’s cost to its expected revenue per machine, and keep the mix flexible enough to shift toward the games that pay back first.
Arcade Prize Inventory, Staffing, And Launch Readiness Startup Expense
Opening Cash Mix
Classify this bucket mostly as pre-opening expense and working capital. It covers initial prize stock, F&B supplies, cleaning supplies, uniforms, recruiting, training, pre-opening payroll, launch advertising, opening event costs, and a maintenance reserve. Size it from opening weeks, headcount, and inventory counts, then test it against Year 1 cost loads of 60%, 50%, 50%, and 30%.
Prize And Supply Inputs
Use unit counts, opening-day cases, and weeks of coverage. The main inputs are prize SKUs, F&B par levels, cleaning and uniform quantities, recruiter fees, training hours, and payroll days before opening. One clean rule: if the shelves look full on day one, you probably bought enough. If not, rush buys will hit cash fast.
Salaried Launch Team
Year 1 salaried staffing includes $70,000 for the general manager, $50,000 for the assistant manager, and $45,000 for the game technician, plus part-time event, marketing, and F&B leadership roles. Add recruiting and training before opening, because those costs land before revenue does. One missed hiring date can turn into a cash squeeze.
Control The Burn
Keep this spend lean by phasing hires, capping opening-event costs, and buying prize inventory in smaller first drops. Don’t bury it inside equipment CAPEX; it belongs in launch cash. The model’s pressure points are clear: 60% prize merchandise cost, 50% F&B inventory cost, 50% hourly wages, and 30% marketing.
Arcade Licenses, Permits, Insurance, And Professional Setup Startup Expense
Compliance setup
Licenses, permits, insurance, and professional setup are usually pre-opening expenses, not CAPEX. Budget for the local business license, any amusement or coin-operated machine permits, inspections, sales tax setup, legal, accounting, and lease review. Costs vary by city, county, state, landlord, and insurer, so confirm requirements before you sign the lease.
What to include
Use each filing, quote, and review hour to build the estimate. The model includes $500 per month for business insurance and $300 per month for security system operating cost, so keep those in operating cash flow. Add one-time legal and accounting fees separately from launch spending.
Count every required permit.
Price lease review separately.
Keep monthly costs in OPEX.
How to avoid surprises
Get written quotes before you commit. Ask whether inspections, code work, or tenant rules raise the cash need, and make sure the insurance quote matches your game mix and floor plan. A small permit miss can stall opening, so this is one cost you do not want to guess on.
Lease check
Before signing, confirm the landlord’s work letter, any tenant improvement allowance, and any required code upgrades. If the site needs extra inspections or fixes, those costs can land before opening and change your startup cash need fast. Get it in writing, not verbally.
Arcade POS, Card Reader, And Redemption System Startup Expense
POS and Redemption
For a cashless arcade, this is a fixed launch cost, not a nice-to-have. Budget $20,000 for prize redemption plus $10,000 for POS hardware, including card readers, kiosks, ticket tracking, redemption counter equipment, networking, software setup, and installation.
What It Includes
Use this budget for the full system stack: card readers, kiosks, ticket tracking, redemption counter gear, networking, software setup, and install labor. Split the estimate into hardware CAPEX and ongoing software. The recurring software line is $150 per month, so do not bury it inside startup hardware.
Ask for itemized hardware quotes.
Keep software on a monthly line.
Match systems to cashless flow.
Cost Control
Do not cut the redemption system if you plan cashless cards, ticket tracking, or prize redemption. The real control lever is scope: buy only the stations and counter gear you need, then keep the software subscription separate. Also tie prize buying to the Year 1 merchandise cost target of 60% of revenue.
Get one install quote, not five add-ons.
Avoid duplicate ticket systems.
Watch prize cost against revenue.
Budget Split
Keep the $30,000 startup spend visible as two buckets: $20,000 hardware for redemption and $10,000 for POS hardware. That makes lender, investor, and owner review cleaner, and it shows what is upfront CAPEX versus what keeps running each month at $150.
Arcade Buildout And Leasehold Improvements Startup Expense
Build-out budget
The model sets $150,000 for venue build-out from Month 1 to Month 3. That covers electrical capacity, flooring, wall finishes, lighting, HVAC checks, restrooms, counter area, safety paths, signage, and contractor labor. Keep it separate from rent: $8,000 monthly rent is operating cost, not renovation spend.
Estimate drivers
Use square feet, finish level, and code work to price the job. Here’s the quick math: $150,000 is the base renovation pool, then add any landlord-required upgrades. Ask for line items for electrical, plumbing, HVAC, and finish work, because a lump-sum quote hides cost shifts. One clean rule: no lease, no buildout bid.
Price electrical and HVAC separately
Ask for code-upgrade scope
Confirm landlord credit timing
Lease relief
A landlord work letter, tenant improvement allowance (cash the landlord gives for buildout), or code upgrade share can lower founder cash need if it is written into the lease. If buildout runs the full 3 months, add $24,000 of rent on top of the $150,000 renovation budget before deposits.
Cash need check
Before you sign, ask who pays for code fixes, who owns tenant improvements, and when rent starts. If the landlord funds part of the work, your startup cash drops; if the space needs extra code upgrades, it rises fast. Get those answers in writing before closing the lease.
