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Thoughts and experience on Gaming Cafe's

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Last Modified: 2015-01-05
Hi there.  Myself, and two other friends are in the information gathering/business plan writing process of forming up and opening a gaming cafe.  We are looking to have a mix of terminals and tvs with consoles attached to them for gaming, most likely some tv access if folks are so inclined, and at some point displaying movies either on t.v.s or by projectors.  In addition we are contemplating renting out the space to local colleges/businesses/etc as a classroom or demonstration space.  We are looking to locate in an area that would be centrally located in terms of collegs, h.s, and the more affluent areas.  A major point is to not create a location that will become a 'hole in the wall', but instead be a more open location.   We want to promote social networking in such a location.  From research I have done, the most successfull places seem to focus on this aspect, and those that have failed really haven't done as such.  In addition to games, we are strongly considering serving alcohol to promote the social setting.

My questions to you, the community are thus:
1) There is not a tremendous wealth of information out there on why most gaming cafe's fail.  Does anyone here have ideas/considerations?

2) Does anyone here have ideas why particular places might overwhelmingly succeed?

3) With those questions being said, please provide any wisdom that you all may have.  I'm not looking solely at the responses given here, this is simply to supplement my already existing research.  And apologies if any grammar/spelling is off.  Thanks a lot for any help, insight, and wisdom any of you can provide.
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Here's a good article, its dated but has some good points:

http://news.zdnet.com/2100-9595_22-102491.html

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Thanks.  One thing I'm definately noticing in many strict gaming facilities, is a 2-3 year curve.  Year 1-1.5 you do really well with business towards the end slowly edging off.  Year 1.5-2.5 your not making enough to update your tech, which falls behind, facilities begin to look crappy, you lose customers save for those few dedicated crazed few.  Year 2.5-3 business falls to the point where your loosing money/maybe just breaking even and you crash.  

I absolutely want to avoid doing this, and so it seems really that emphasising social community is really where it is at for a successful business in this line.  Go go Grassroots and such.  Keep the advice coming folks it's all helpfull!
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