Starting An Escape Room Business: The Ultimate Guide

Escape rooms draw inspiration from the popular “point and click” adventure games from the 80s. Avid manga fan, Takao Kato wanted to recreate the adventures he read in books. So in 2008, he developed the first Real Escape Game (REG) in Kyoto, Japan. 

Cut to today, and escape rooms are a rapidly growing industry. 

So what’s all the fuss about?

What is an escape room?

‍An escape room is a physical adventure game in which players are locked in a room and have to use surrounding elements to solve a series of puzzles and escape within a set time limit. Designed for small groups of 2-10 people, they are popular for corporate team building as well as birthday parties, bachelor/ette parties, and other social gatherings. 

Players are typically given a scenario in which they must escape imprisonment or thwart a criminal plot. The games are set in various fictional locations, including prisons, space stations, castles, and haunted houses. Escape rooms usually require a great deal of cooperation, so participants have to solve the puzzles as a team. These conundrums can include finding hidden objects, deciphering codes, and unlocking locks. 

Players are usually given an hour to escape from the room, and many rooms have multiple levels or puzzles that must be completed in sequence. All in all, escape rooms all but guarantee an original, memorable experience for all involved.

How big is the escape room market?‍

The escape room industry has grown massively in the last few years. According to a report by the global market research firm Statista, the escape room market was worth an estimated $2.2 billion in 2018, and it is expected to grow to $3.5 billion by 2022.

This growth is being driven by a number of factors, including the rising popularity of team-building activities and the growing demand for immersive experiences. As the market continues to expand, don’t be surprised to see several materialise in your local area!

Right, let’s crack on with our step-by-step guide to starting your own escape room business!

1. Research the market and your competitors
2. Define your ethos and goals
3. Draw up a business plan
4. Ensure you have a secure a budget
5. Pick an appropriate venue
6. Develop exciting themes and narratives
7. Create a marketing strategy
8. Choose an online booking system
9. Gather customer feedback
10. Ensure your business meets legal requirements

1. Research the market and your competitors

Regardless of the type of business, research should always be the first priority for your start-up. Ensure you spend ample time collecting the necessary data so you can make informed business decisions.  

We recommend comprehensive market research to get a better grasp of your customers and competitors. You should also consider your local market, and compile relevant and accurate figures about your target audience.

Escape rooms attract a diverse range of visitors, so you’ll need to carefully consider the interests of those based in your area, as well as relevant demographic factors like education, occupation, and of course, age. Sites like Apollo.io are great for discovering the competition, as well as Google maps results for "escape room + your region".

2. Define your ethos and goals

Now you have a good understanding of the market, you should delineate your business ideas and targets. Be as thorough and specific as you can; leave no stone unturned so nothing has the potential to derail you later down the line. You can begin by asking yourself straightforward questions: 

1. What is the unique selling point of your escape room?
2. Who is it suitable for?
3. How will you keep your visitors coming back? 
4. What is the best location?

Brainstorming as many questions like these as you can help to solidify your core business concepts and can serve as a useful starting point for subsequent decisions. 

3. Draw up a comprehensive business plan

When you’re ready, it’s time to create a detailed plan. Every start-up company must be aware of its immediate priorities and long-term targets, and escape rooms are no different. This will help you implement a systematic route to success. 

Some key aspects to consider are:

• What will your business be called? How would you describe it, and where will it be based?  
• Carry out market analysis so you fully understand supply, demand, and competition.
• What are your short-term and long-term goals? 
• What sales strategy will you use to achieve these?
• What services will you provide? What type and how many games?
• Will you sell products, add-ons, and merchandise?
• Carefully consider costs: your budget and financial projections.
• How will you market your business?

The Business Plan Shop have created a nice business plan template specifically designed for Escape Room businesses, it's well worth a look if you're new to business plans!

4. Ensure you have a secure budget

Around 60% of small businesses fail in the first year, and one reason is a lack of financial planning. When starting your escape room business it’s essential you have a secure financial base. A lot goes into escape rooms—equipment, premises, marketing, etc.— so you need to make sure you have the budget to fund these from the offset. Furthermore, remember to incorporate legal and administration fees. 

Before you get excited about creating your unique games, secure an adequate budget that can cover any potential costs you could incur. If you’re unable to, you could apply for financing, but if you do ensure you have a water-tight business plan for your application. 

Given that the venue itself is the largest cost of running an escape room, owning your own space will give you a lot of financial breathing room. Research shows that the average price of setting up a single room range between 7,000 EUR and 30,000 EUR.

5. Pick an appropriate venue

Once you’ve secured your finances, you need to find a suitable space for your escape room. There are many factors to consider when deciding upon an appropriate room, among which are accessibility, local competition, security, the potential for expansion, as well as business, rental, and legal costs. 

You should also bear the physical proportions of the space in mind, and ensure you have electricity, water access, fire exits and assembly points, office and admin space, and so on.

Consider the neighborhood and surrounding businesses. You want a location that's easily accessible, with plenty of foot traffic, and ideally, somewhere that's already a hub of activity. Think busy shopping centers, entertainment districts, or anywhere that's just begging for an escape room to open up shop!

Just make sure it's not so hidden that your customers have to embark on a quest of their own just to find you. A little mystery is good, but no one wants to get lost before they've even started the game.

Size matters. You don't want to be cramped or have your players tripping over each other. The best escape rooms offer plenty of space for players to spread out and solve the puzzles.

Make sure your location can accommodate the number of rooms you want to offer and the size of the groups you plan to host. It's always better to have too much space than too little, as you can always expand your offerings later. And let's face it, who wants to feel like they're trapped in a tiny room when they're trying to escape? 

The dimensions and “feel” of your space will also play into what kind of games you create, which brings us to the next (perhaps most fun) step! 

6. Develop exciting themes and narratives

More so than many other businesses, escape rooms require a lot of creative flair. After all, it is the activities themselves that will keep customers coming back, and encourage them to recommend your escape room to friends. 

With escape rooms now being so popular, you’ll want your narratives and themes to go beyond expectations. Think about what would appeal to your local 

demographic, and draw inspiration from what your competitors are doing—but don’t copy them!

Here are some of our own escape room ideas to get your juices flowing!

Pirate's Treasure: Ahoy mateys! In this escape room adventure, players find themselves aboard a ship, searching for the fabled treasure of Captain Blackbeard. But they're not alone – the ghost of Blackbeard himself is haunting the ship, guarding his treasure and challenging players to solve his puzzles and riddles. Can your crew outsmart the ghost and claim the treasure for themselves?

Zombie Apocalypse: The undead have taken over the world and it's up to your players to find the cure and save humanity! In this post-apocalyptic escape room, players must navigate through a city overrun with zombies, collecting clues and solving puzzles to find the cure before it's too late. But be careful – the zombies are everywhere and they're hungry for brains!

Time Travel Adventure: Ready to travel through time and space? In this escape room adventure, players are whisked away to different eras and locations, from ancient Egypt to a futuristic space station. But there's a catch – they have to solve puzzles and complete challenges in each location before they can move on to the next one. Can they travel through time and complete the mission before time runs out?

If you’re looking for a few more ideas to get those creative juices flowing check out these puzzle ideas.

7. Create a marketing strategy‍

Now you’ve got your ducks in a row, it’s a good idea to build an in-depth marketing strategy. This will encompass the delineation and expansion of your ideas along with a lucid plan for action. Just make sure you stay within your budget and utilize the findings acquired from your research.

Fortunately, today there are many affordable ways to market your business that don’t require you to cough up thousands for paid ads. Some of these include: creating an engaging SEO-optimised blog,  sharing compelling footage on social media, harnessing positive customer reviews, listing your escape room on Google My Business, and selling unique branded merchandise. 

Social media: Platforms like Facebook, Instagram, and Twitter are extremely effective ways to reach a wide audience and showcase your escape room experience. Post updates about your games, promotions, and other exciting news. Make sure you use eye-catching graphics and videos to grab people's attention.

Email marketing: This is a tried and tested method to staying in touch with your existing customers and keeping them engaged with your business. Send regular newsletters with updates on new games, promotions, and other news, and offer exclusive deals and discounts to keep them coming back.

Online directories: Listing your escape room business in online directories like Yelp, Google My Business, and TripAdvisor can help you reach new customer. Make sure your listings are complete and up-to-date, and encourage satisfied customers to leave positive reviews.

Partnerships: Partnering with other local businesses can be a great way to cross-promote and generate new customers. Consider partnering with nearby restaurants or bars to offer a special package deal for players who visit both locations.

Paid advertising: Though it can be pricey, paid ads can be an effective way to reach a targeted audience and drive traffic to your booking website. Consider using platforms like Google Ads or Facebook Ads to target people who are interested in escape rooms or related topics.

Events and promotions: Hosting events and promotions can generate a lot of excitement and engagement with your escape room. Why not host a themed event, or a contest that encourages players to share photos or videos of their experience?

Ultimately, no m after what marketing methods you employ, remember to stay true to your brand and your audience. You’re an escape room business, so don’t be afraid to be creative and innovative in your marketing efforts! After all, the more unique and memorable your messaging, the more likely you are to attract new customers and keep them coming back for more.

8. Use an online booking system 

Thanks to the digital age, businesses can now access a variety of online platforms to streamline their workload and scale their operation. An online booking system offers myriad benefits to an escape room business. Here are a just a few reasons why using one can be advantageous:

Convenience for customers: By allowing customers to book online, you're offering a convenient and easy way for them to make a reservation. They can book anytime, anywhere, without having to call or email your business during business hours. This saves you loads of admin time that you can apply to more creative business endaevours.

Reduced administrative workload: Using an online booking system can save time and reduce administrative workload. You won't have to spend as much time answering phone calls or responding to emails about availability, as customers can see real-time availability and book directly through the system.

Increased accuracy: With an online booking system, customers can see exactly what times are available and choose the one that works best for them. This reduces the likelihood of overbooking or double-booking, which can be frustrating for both customers and staff.

Streamlined payment process: Most online booking systems integrate payment processing, making it easier for your customers to pay for their reservation. This greatly reduces the need for staff to handle cash or process credit cards manually.

Data collection and analysis: Before the web, data collection and analysis was extremely time-consumin. Booking platforms enable you to collect valuable data about your customers, such as their booking history, preferences, and contact information. This data can help you better understand your target audience and make informed decisions about marketing and business operations.

There are numerous booking systems available, but in terms of affordability and ease-of-use, we recommend Baluu. Compared to other options on the market, Baluu is all-in-one booking software that enables you to build a branded site, take bookings, use useful reporting features, and process payments, all in one platform. 

A booking system is a must-have for any escape room business. To get a better understanding of the options available to you, check out our blog on the Top 10 Best Booking Systems For Small Businesses.

And if you want to give Baluu a shot, this guide will show you How To Create An Online Booking System.  

9. Gather customer feedback

No matter your line of work, customer reviews are immensely important—and this is especially true of escape rooms. From the very beginning, we recommend generating, collecting, and using reviews. Fortunately, online booking systems like Baluu have many valuable features that can help you make the most of your feedback. 

Procuring data on your customers’ experience can help you fine-tune your escape room to satisfy as much of your target audience as possible. Customise your review collection system so you can ask specific questions: were the puzzles too hard? What could we improve? Etc. 

The great thing about positive testimonials is they can be reused across your marketing channels (on your website, socials, and even in print) so don’t underestimate them!

10. Ensure you satisfy the legal requirements

Unfortunately, you can’t just spend all your time coming up with cool activities. At some point, you need to get your business authorized and obtain all the necessary licenses. Draw up some terms and conditions that cover you legally, along with a privacy policy clearly explained on your website.

The escape room industry is now much more tightly regulated, so you need to ensure you research the safety requirements specific to your country. 

Not only are you providing a fun and engaging space for your customers, but that space also needs to be safe so that they’re protected. Remember, negligence could lead to a potential accident that could (at the very least) shut your business down.

Running an escape room business in the UK requires compliance with various legal requirements. Some of the key considerations include ensuring the safety of customers and employees, protecting the business against potential legal claims or liabilities, and complying with relevant licensing and data protection regulations.

To meet health and safety requirements, it's important to conduct a thorough risk assessment of the escape room game and design the game in accordance with relevant regulations. Fire safety is also a key concern, and you should have an up-to-date fire risk assessment, adequate fire protection, and escape routes in place.

Obtaining appropriate insurance, such as public liability insurance, employers' liability insurance, and property insurance, is essential to protect the business against potential legal claims or liabilities.

You may also need to obtain various licenses and permits, such as a premises license or an entertainment license, to operate your escape room business. Moreover, if you collect personal data from customers, you must comply with data protection regulations to ensure that data is collected and stored securely and that customers are informed about how their data is being used.

It's important to ensure that the escape room is accessible to people with disabilities, including providing wheelchair access, accessible toilets, and designing the game in such a way that it can be played by people with a range of disabilities.

Overall, it's important to seek professional advice and guidance to ensure that your escape room business is fully compliant with all legal requirements and regulations in the UK.

Conclusion
People are bored with the same old activities, and escape rooms offer them a one-of-a-kind experience that will leave an indelible mark. If you do decide to join this exciting industry, you won’t just be counting coins or providing people a service, but offering unforgettable memories.

With this guide, we’ve tried to cover all the key areas of getting your escape room up and running. That being said, we strongly advise you to research further until you’re confident in your business plan and have the budget to support it. The fulfillment gained from running a successful escape room business is rarely matched—just make sure you dot your I’s and cross your T’s. Good luck!

Need more advice?

Have a read of some related guides on the Baluu blog below, or book a demo with one of our friendly team today. We'll be happy to walk you through the Baluu system and how it can help you manage and grow your bookings business.

• How To Make A Bookings Website: A Step By Step Guide

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