You're opening an arcade-plan minimum cash of $833,000; biggest capex items are $1,200,000 for gaming cabinets and $750,000 for leasehold improvements, with reservations launching March 1, 2026 and year‑one revenue projected at $3,139,000. Also fund the proprietary app build of $250,000 and $5,000 monthly maintenance to capture booking revenue.
#
Startup Cost
Description
Min Amount
Max Amount
1
Leasehold Improvements and Buildout
Major construction, wiring, acoustics, and testing spaces finished by Feb 28, 2026.
$750,000
$750,000
2
Gaming Cabinets and Simulators
High-fidelity cabinets purchased and installed by Feb 28, 2026; stagger expansions later.
$1,200,000
$1,200,000
3
Proprietary Software Platform
Core platform for reservations, metrics, and leagues built by Feb 2026.
$250,000
$250,000
4
Kitchen, Bar, and Hospitality Setup
Kitchen and bar equipment plus initial F&B inventory before opening.
$220,000
$220,000
5
Furniture, Fixtures, and Security
Seating, durable finishes, and security systems protecting high-value assets.
$150,000
$150,000
6
Pre-opening and Working Capital
Cash reserve to cover rent, payroll, and marketing until revenue stabilises.
$833,000
$833,000
7
Staffing and Technical Expertise
Key hires including management and technicians to preserve operations and retention.
$200,000
$200,000
Total
$3,603,000
$3,603,000
Key Takeaways
Hold a $833,000 minimum cash reserve before opening
Complete cabinets and leasehold work by February 28, 2026
Launch reservation revenue March 1, 2026 with app stable
Prioritize technicians and maintenance to prevent costly downtime
How Much Does It Really Cost To Start Arcade?
You're planning an arcade and need a clear cash number; most initial capital is capex, led by $1,200,000 for gaming cabinets and $750,000 for leasehold improvements. Check projected owner economics here: How Much Does an Arcade Business Owner Earn?. Working capital and initial inventory are smaller buffers, but the model's required minimum cash runway is $833,000. Core reservation and other revenue streams launch in March 2026.
Initial capital priorities
Gaming cabinet cost: $1,200,000 total
Leasehold improvements cost: $750,000 total
Minimum cash runway: $833,000 required
Launch core revenue: March 2026
What Is The Minimum Budget Required To Launch Arcade Lean?
Prioritise essential capex, stage big purchases, and hold the model's minimum cash reserve of $833,000 to launch lean-keep reading for the actionable trade-offs. Keep the proprietary software scope tight to cut upfront spend and delay merchandise and membership programs until after year one. Stage gaming cabinet purchases to spread cash burn and protect runway; review ongoing operating costs here: What Operating Costs Arcade Games Incur?
Minimum lean launch checklist
Prioritise essential capex to reach a functional facility quickly
Keep proprietary software scope focused to reduce upfront spend
Stage gaming cabinet purchases to manage cash flow
Hold a minimum cash reserve of $833,000 and delay merch/memberships
Which Startup Costs Do Founders Most Often Forget To Include?
You're launching an arcade-don't miss the recurring drains that sink cash fast, and read on to fix them before opening. The model lists a $5,000/month app maintenance contract starting March 2026, plus utility and insurance ramp in the first months, payment processing and consumables tied to each sale, recurring game license fees, and allocated marketing/commissions for reservation partners; check this alongside projected revenues in How Profitable Are Arcades in Today's Market?
Common missed recurring costs
App maintenance: $5,000 monthly
Utilities and insurance ramp in early months
Payment processing and consumables per sale
Game license fees and reservation commissions
Where Should You Spend More To Avoid Costly Mistakes?
Spend more where failures cost you time, cash, and customer trust - especially on high-quality technicians and a rock-solid booking system; read on and check operational KPIs in 5 KPI & Metrics for an Arcade Business: What Should You Track for Success? This keeps cabinets running, reservations reliable, and reduces costly rework and downtime - defintely worth the up-front hit. Prioritise durable F&B equipment and professional leasehold work so you don't repeat buildout costs later.
Where to spend more
High-quality technicians to protect cabinet uptime
Robust reservation and tracking software for reliability
Durable furniture and hospitality-grade kitchen equipment
Professional leasehold improvements + higher launch marketing
What Budget Mistake Causes The Biggest Overruns?
You're most likely to run out of cash by underestimating capex timing, so read on to fix the three biggest blind spots and protect your runway; see projected owner returns How Much Does an Arcade Business Owner Earn?. The model flags a $833,000 minimum cash reserve and shows app maintenance at $5,000 monthly starting March 2026. Over-relying on F&B and skimping on technician headcount both cause expensive downtime and margin shortfalls. Missed capex timing creates immediate cash shortfalls at opening and forces emergency funding.
Big budget mistakes to avoid
Underestimate capex timing → cash shortfall
Ignore the $833,000 minimum cash requirement
Depend on F&B to cover arcade margins
Skip technicians and pay for downtime
What Are Arcade Startup Costs?
Startup Cost: Leasehold Improvements And Buildout
Leasehold improvements and buildout for arcade cover the full site conversion-construction, wiring, acoustic treatments, and testing spaces-and matter because they are the single largest upfront investment and gate the planned opening on February 28, 2026.
What This Cost Includes
Construction and partitioning for play and service zones
Electrical upgrades, low-voltage wiring, and network backbone
Acoustic treatments, lighting rigs, and testing spaces
Inspection, commissioning, and final compliance checks
Biggest Price Drivers
Scope and complexity of testing and acoustic requirements
Location and existing tenant improvements required by lease
Timing and change-order risk that causes costly rework
Typical Cost Range
Model lists total leasehold improvements at $750,000
Work must be complete by February 28, 2026 to meet opening
How to Reduce Cost Safely
Finalize specs before bids-freeze scope to avoid rework
Split noncritical finishes to post‑launch phase and defer cost
Source a contractor with arcade or hospitality references to cut surprises
Common Mistake to Avoid
Rushing design changes during build → expensive rework and delayed opening
Underplanning service access for cabinets → higher maintenance downtime
Startup Cost: Gaming Cabinets And Simulators
Gaming cabinets and simulators are the core capital spend for arcade, driving guest experience and most of the upfront capex so uptime and tracking compatibility matter from day one.
What This Cost Includes
High‑fidelity gaming cabinets and motion simulators
Delivery, installation, and on‑site calibration
Integration hardware for proprietary reservation and tracking
Initial spare parts and technician setup tools
Biggest Price Drivers
Equipment fidelity and vendor choice (standard vs premium)
Timing and delivery schedule-complete by Feb 28, 2026
Integration needs with proprietary performance tracking
Typical Cost Range
Forecasted total equipment spend: $1,200,000
Purchase schedule completes by Feb 28, 2026; expansions begin Jan 2028
Cost varies with cabinet count, simulator complexity, and integration scope
How to Reduce Cost Safely
Stage purchases-buy core set for opening, defer expansions to Jan 2028
Specify integration interfaces up front to avoid retrofit costs
Buy critical spares and train 1-2 technicians to cut downtime
Common Mistake to Avoid
Buying cabinets without confirming compatibility with the proprietary platform → causes expensive retrofit and lost reservation revenue
Delaying maintenance planning → increases long‑term replacement costs and downtime
Startup Cost: Proprietary Software Platform
The proprietary software platform for arcade handles reservations, lifetime performance metrics, and league data and matters because it's a launch-critical system that enables core revenue and player retention.
What This Cost Includes
Initial app build through February 2026 with booking and metrics
Integration with reservation workflows and league ranking storage
Testing, deployment, and launch readiness for March 1, 2026
Ongoing app maintenance contract beginning March 2026
Biggest Price Drivers
Scope: reservation, lifetime metrics, and league features increase build effort
Quality and stability targets dictate engineering hours and testing depth
Vendor choice and integration complexity with cabinets and payments
Typical Cost Range
Initial build cost listed as $250,000 through February 2026
Ongoing maintenance contract at $5,000 monthly starting March 2026
Planned major upgrade budget of $80,000 in 2029
How to Reduce Cost Safely
Limit MVP features to reservations and metrics, defer noncritical UX perks
Use fixed‑price sprint contracts for launch work to control scope creep
Stage features: launch core booking, add leagues and analytics in paid upgrades
Common Mistake to Avoid
Building broad feature set pre-launch + delays the March 2026 revenue start and spikes costs
Skipping a maintenance contract + causes unexpected monthly drains and slower bug fixes
Startup Cost: Kitchen, Bar, And Hospitality Setup
Kitchen, bar, and hospitality setup for arcade covers the equipment, initial F&B inventory, and staffing systems that drive food & beverage revenue and guest experience-critical because the model forecasts $180,000 in equipment, $40,000 opening inventory, targets a 40% F&B margin, and an average check of $110.
What This Cost Includes
Commercial kitchen equipment and bar fittings
Initial food and beverage inventory before opening
Point-of-sale and order-management integrations
Hiring and onboarding for F&B manager and core staff
Biggest Price Drivers
Equipment quality and kitchen scope (full kitchen vs. limited service)
Location costs and local health-code compliance needs
Choice of POS and integrations for reservations and F&B tracking
Typical Cost Range
Equipment line item in the model totals $180,000
Opening F&B inventory in the model is $40,000
Costs vary by menu complexity, kitchen footprint, and local permit fees
How to Reduce Cost Safely
Start with a limited menu and modular equipment to hit a 40% margin target faster
Buy key durable items new, lease or buy used for secondary equipment to save upfront
Hire an experienced F&B manager before opening to set pricing, portioning, and supplier contracts
Common Mistake to Avoid
Under-hiring F&B leadership → poor margins and higher spoilage costs
Overbuilding the kitchen before demand proof → ties up cash needed for cabinets and leasehold
Startup Cost: Furniture, Fixtures, And Security
For arcade this covers seating, reservation pods, durable finishes, and theft protection, and it matters because these items protect the high‑value gaming cabinets and shape the guest experience while carrying a combined material cost burden.
What This Cost Includes
Seating and reservation pods sized for 15-20 competitive cabinets
Durable finishes and fixtures designed to reduce replacement
Security hardware: alarms, cameras, and asset locks
Ongoing security service contract starting March 2026
Biggest Price Drivers
Quality and durability of seating and finishes (labour to replace)
Security system scope and vendor choice (cameras, monitoring, integration)
Facility layout and reservation-pod complexity (custom vs modular)
Typical Cost Range
Furniture and fixtures budgeted at $120,000
Security system installed at $30,000 with services $1,800/month
Final spend varies by finish level, pod complexity, and monitoring service
How to Reduce Cost Safely
Buy modular reservation pods and add trim later to spread capex
Specify commercial‑grade finishes only in high‑contact zones to cut replacement
Install scalable security hardware now; enable paid monitoring later
Common Mistake to Avoid
Skimping on durable fixtures → higher replacement and downtime costs
Delaying comprehensive security installs → asset theft or insurance claims
Startup Cost: Pre-Opening And Working Capital
Pre-opening and working capital for arcade covers the cash needed to pay rent, payroll, and launch marketing until customer revenue stabilises - it's the safety buffer that prevents running out of cash before March 2026.
What This Cost Includes
Pre-opening rent and CAM payments starting January 2026
Payroll for hires and at least one full payroll cycle before opening day
Marketing and advertising budgets active from launch
Short-term working capital for inventory, utilities, and vendor deposits
Biggest Price Drivers
Lease terms and location influencing monthly rent and CAM
Staffing plan size and timing of payroll hires
Marketing spend and channel mix needed to hit reservation targets
Typical Cost Range
Model minimum cash reserve: $833,000 (lowest month identified as March 2026)
Rent & CAM in model: $25,000 monthly starting January 2026
Marketing budget in model: $7,500 monthly from launch
How to Reduce Cost Safely
Negotiate rent abatement for first 60-90 days to stretch runway
Stage hires: hire core ops first, delay full hospitality headcount until revenue stabilises
Run targeted pre-launch marketing (reservations-first) to convert demand before high F&B inventory buys
Common Mistake to Avoid
Underfunding the minimum cash reserve - consequence: emergency dilution or missed opening targets
Starting full staffing too early - consequence: high payroll burn before revenue ramps
Startup Cost: Staffing And Technical Expertise
Staffing and technical expertise covers hiring a general manager, front‑of‑house hospitality team, and dedicated game technicians - and it matters because technician uptime preserves EBITDA and customer retention.
Staffing and technical expertise for arcade and why it matters: hires keep high‑value cabinets running and deliver the guest experience that drives repeat bookings and F&B attach rates.
What This Cost Includes
Key hires: general manager and head technician
Hospitality staff scaling from 6 FTE to 12 FTE
Game technicians starting at 2 FTE, growing to 5 FTE
Ongoing app maintenance and support overlap with tech head
Biggest Price Drivers
Headcount and role mix (hospitality vs. technicians)
Local labor market and salary levels by location
Timing relative to opening (pre‑hire vs. hire post‑launch)
Typical Cost Range
Staff plan in model ties to minimum cash reserve of $833,000
App maintenance linked to staffing at $5,000 monthly starting March 2026
Costs vary by local wages, benefits, and number of technician FTEs
How to Reduce Cost Safely
Stage hires: hire core GM and head technician before opening, add floor staff as revenue ramps
Cross‑train hospitality staff to handle basic cabinet resets to lower initial technician headcount
Outsource weekend technical support contract for first 6-12 months instead of full FTE hire
Common Mistake to Avoid
Hiring too few technicians - consequence: increased cabinet downtime and lost reservation revenue
Delaying hire of head technician - consequence: reactive maintenance increases replacement costs
You need to plan for at least $833,000 in minimum cash reserves That figure is the model's stated minimum cash with the lowest month identified as March 2026 Expect major upfront capex including $1,200,000 for cabinets and $750,000 for leasehold improvements in the opening period
Reservation fees are scheduled to launch on March 1, 2026 The model projects first-year reservation revenue of $1,853,000 and total first-year revenue of $3,139,000 Ensure the proprietary app and booking workflows are operational before that date to capture early demand and FOMO
Yes, the proprietary platform is a launch-critical asset with $250,000 initial build costs App maintenance is budgeted at $5,000 monthly starting March 2026 The platform enables reservations, lifetime performance tracking, and league rankings which are core to the value proposition
The financial model indicates breakeven in year one based on projected revenue and expenses First-year EBITDA is $914,000 and revenue is $3,139,000, which supports an early breakeven claim Monitor monthly cash flow against the $833,000 minimum cash requirement to validate breakeven timing
Projected EBITDA grows from $914,000 in year one to $2,981,000 by year five Revenue progression in the model is $3,139,000 year one and $7,315,000 year five Watch occupancy, F&B attach rates, and technician uptime to realize these profit milestones
