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If you had a choice in turning a space in the theatre to a small cafe or Game room which would be more profitable. There was also interest in maybe turning it into a party room. But I though that wouldn't bring in to much cash flow. The game room or cafe would bring in a steady income.
The cafe would just be a place to get a light meal or snack before the feature. The game room would be something that would house arcade type games.

IMO if you included computer type games and periodically hosted computer game tournaments that would be the most profitable way to go. The gaming industry is a multi-billion dollar business. If you are thinking only arcade games then I'd go with the cafe as arcade type games appeal to a limited demographic, usually the younger one. Keeping either open at times other that show times could increase your profit from them.

As someone who has been in the coin-op game business for 35 years, make it a cafe. Game arcade revenue is AWFUL these days.

Bob,
Computer games are rarely done in a cafe/game room basis. We do this type of gaming on a limited basis (only because we have nothing else to do with the space) with console systems. You will only pull in the youngest customers as the older customers already have their systems at home with nice tvs.

Arcade: Costly to buy. Revenue share? seems to be not many of these folks out there supply this way.

Cafe: While equipment is cheap these days, why will people come to you?

Neither of these ideas are terribly exciting to me.

Any other sugestions. It is currently used as a party room. But the parties are not to often and hate to waste the space the other times.

Cafe if most are your patrons are older , game room if you get a lot of kids.