How Much Does a Kids Arcade Business Cost to Start?

Introduction

Starting a kids arcade business is one of the most exciting and stable investments in today’s entertainment industry. As shopping malls evolve into lifestyle destinations, a well-designed kids arcade zone can generate steady income, attract families, and boost the overall value of your location.

But how much do you really need to invest to get started?

The answer depends on your venue size, the type of machines you choose, and the experience you want to deliver. In this guide, Joyfuncade shares the key cost factors, setup considerations, and smart budgeting strategies to help you launch profitably — without overpaying or overbuilding.

(For the complete setup guide, read How to Build a Profitable Kids Arcade Zone in a Shopping Mall.)

Understanding the Investment Structure

A successful kids arcade startup typically includes three main cost categories:

1. Entertainment Equipment – arcade and indoor playground machines

2. Setup & Decoration – design, installation, safety, and lighting

3. Operations & Management – staffing, licensing, and maintenance

How you balance these will determine your payback period and long-term ROI.

Typical Startup Models for Kids Arcades

Tip: You don’t have to start large. Many Joyfuncade partners begin with one corner of a shopping mall or cinema foyer, then scale up as visitor traffic grows.

The Main Factors That Influence Startup Costs

 1. Choice of Machines

Your equipment is the heart of your business.
A balanced arcade typically includes:

• Prize and redemption machines for younger kids

• Racing or motion simulators for older children

• Interactive educational games that parents appreciate

• Soft indoor playgrounds or trampolines for physical activity

• VR/AR attractions for premium experiences

Joyfuncade offers all these categories with modular options — so you can adjust your setup according to your space, theme, and budget.

Explore Joyfuncade’s kids arcade and indoor playground machines

2. Design and Atmosphere

A well-planned environment multiplies your revenue potential.

• Thematic decorations (space, jungle, cartoon, ocean)

• LED lighting and signage for visibility

• Soft flooring and safety padding for comfort

• Seating zones for parents

Joyfuncade’s in-house design team can provide 3D floor plans and custom themes to make every square meter profitable and family-friendly.

3. Smart Management Systems

Modern arcades rely on digital systems for efficiency:

• Cashless or QR-based payment modules

• Remote monitoring dashboards

• Ticket redemption management

• Performance tracking per machine

All Joyfuncade arcade systems include built-in software for data monitoring and revenue analysis, reducing labor costs and maximizing uptime.

4. Licensing and Safety

Every country or mall has its own licensing requirements. Typical preparation includes:

• Local business registration

• Safety inspection certificates

• Insurance and mall lease compliance

Joyfuncade machines are CE and ISO certified, simplifying approval from mall operators and authorities.

5. Staffing and Daily Operations

Even with automation, human service adds value.
For a medium arcade, 2–3 attendants are usually enough to:

• Help customers with gameplay or redemption

• Manage cleanliness and safety

• Refill prizes or troubleshoot minor issues

Joyfuncade’s system design allows remote supervision — meaning you can manage multiple locations without being on-site daily.

Example: Medium-Sized Arcade Startup Scenario

Let’s imagine a typical Joyfuncade project inside a 120 m² shopping-mall space:

• Around 15 arcade machines + small soft playground

• Basic interior decoration and signage

• Cashless payment & remote monitoring system

• Two staff members per shift

Such a project can usually reach stable revenue within the first few months, and many operators recover their investment within the first year, depending on foot traffic and local pricing.

(For detailed ROI analysis, read How to Calculate ROI for a Shopping Mall Arcade Business.)

How Joyfuncade Helps You Optimize Costs?

Rather than selling equipment alone, Joyfuncade provides a complete investment solution designed to reduce upfront costs and speed up payback.

What You Get with Joyfuncade?

• Customized project consultation based on your mall layout

• 3D floor-plan design and layout optimization

• One-stop equipment sourcing and shipping

• On-site setup and operator training

• Smart management platform for remote control and data tracking

Because everything is integrated under one system, you save on third-party coordination fees and maintenance costs.

(Learn how to design efficiently in Designing the Perfect Indoor Playground with Arcade Machines.)

Ways to Start Small and Scale Smart

Not every investor starts with a full family entertainment center. Many Joyfuncade clients follow a phased investment plan:

1. Phase 1: Start with a compact 40–50 m² setup to test customer flow.

2. Phase 2: Expand machine variety and add a soft playground.

3. Phase 3: Integrate premium VR or themed attractions as revenue grows.

This approach allows you to control your startup cost while ensuring sustainable business growth.

Common Mistakes That Increase Costs

Avoid these pitfalls when budgeting:

1. Focusing only on price instead of machine durability.

2. Overcrowding your space without planning visitor flow.

3. Skipping theming and lighting, which reduces engagement.

4. Underestimating daily maintenance and staffing.

5. Buying machines without remote monitoring functions.

Joyfuncade’s expert consultants help prevent these issues before you invest.

Key Takeaway – Investment Is Flexible, Value Is Scalable

So, how much does it take to start a kids arcade business?
While figures vary by region and venue size, most investors can begin with a customizable plan that matches their budget, and scale as demand grows.

The real goal isn’t spending less — it’s spending wisely on quality equipment, safety, and experience design.

At Joyfuncade, we help you transform your investment into a thriving family attraction that pays for itself faster than most retail businesses.

Contact Joyfuncade to receive a personalized startup cost estimate and a free design layout based on your available space.

Frequently Asked Questions

Q1: How much investment is needed to start a kids arcade business?
The total cost depends on your location, space size, and machine selection. Joyfuncade offers flexible packages that can be customized to fit your budget and venue.

Q2: How long does it take to recover the investment?
Most Joyfuncade clients reach ROI within 6-12 months, depending on foot traffic and game mix. Our planning team can estimate your potential payback before installation.

Q3: What space size do I need for a small arcade setup?
A compact arcade can start from just 30–50 m². Joyfuncade provides design support and 3D layouts to help you maximize every square meter.

Q4: Are arcade machines difficult to maintain?
No. Joyfuncade’s machines are built for long-term commercial use and include remote monitoring systems for real-time performance tracking and quick support.

Q5: Can Joyfuncade help with installation and training?
Yes. We offer a complete turnkey solution — including layout design, installation, training, and after-sales support — anywhere in the world.