Bowlers Journal International - April 2008 - (Page 76)

HALLMARKS BY WALLY HALL IS THE LOCAL OUTLOOK RIPE FOR REVIVAL? There are concerns, sure, but also new opportunities. THE LATE TIP O'NEILL, FORMER SPEAKER OF THE HOUSE of Representatives, once said, “All politics is local.” He was explaining how the problems and concerns of individual citizens around the country affect the actions of their nationally elected officials and, consequently, the national scene. In much the same way, “all bowling is local,” in that the amount of bowling activity at the community level ultimately influences national attitudes toward bowling and its image. The more prevalent bowling centers are in U.S. communities, and the greater the level of participation, the more important and prestigious bowling will become on the national stage. History supports this belief. When bowling was at its U.S. peak in the late 1950s and early ’60s, bowling programs were shown in prime time on national television and attracted name celebrities. Major corporate sponsors spent large sums to be associated with the sport. Bowling centers were bustling with activity in every small town, with double shifts of adult leagues at night, women’s leagues most weekdays and several youth leagues on Saturdays. Open play waiting lists were normal on weekends. The number of lanes in the U.S. peaked at 161,894 in 1966. That year, the total population in the States was 169 million, or 1,043 people per lane bed. By 2007, the number of lanes had declined to 115,197. With a population of 300 million, there were 2,611 people per lane. The population spurt, coupled with the decline in the number of lane beds, means many population centers have sprung up without a bowling establishment. Some centers in older markets also were caught in a squeeze of negatively plunging demographics, and/or land values whose escalation made their location more valuable for re-development. It's no surprise that the number of league bowlers has flatlined, even declined, since 1966. Social and lifestyle changes are one reason. Also, new bowling centers have not been built in these emerging communities nor kept pace with the population increase. Urban sprawl also makes it inconvenient for residents without a bowling center in their community — or who are far from an existing one — to go bowling. That makes access more critical. Traditional bowling centers draw the majority of their business from the immediate area. Zip code surveys of bowling customers have shown that in metropolitan areas — absent any unusual competitive situation, strange road pattern or geographical features — the 76 bowlers journal international APRIL 2008 majority of customers come from within a five-mile radius (15 minutes' travel time), while virtually all reside within 10 miles (30 minutes). The market area can be more expansive for small towns and rural areas. Another factor: Only a handful of established operators have built new centers in the last decade. Most owners have been pre-occupied with coping with the challenges of their existing and changing business, growing revenue through internal improvement and adding new features. For many long-time proprietors, some obstacles of building a new center are: 1. the cost of a new facility and the resultant high break-even point; 2. the perceived extra challenge of operating a bowling center in the face of declining league trends, and 3. the difficulty of recruiting and retaining qualified management and staff. These concerns have prevented the industry from keeping up with population growth, and from renewing and re-invigorating itself by closing marginal operations and moving to locations with greater potential. The new bowling facilities that have been built have, in the main, been developed by new investors using business models that differ from traditional centers. They include FECs that feature bowling lanes, and also the upscale lounge/restaurant/bowling concept. These owners are not usually linked to bowling historically, so are not as passionate about the sport. Their primary motivation: the potential of a high profit margin and quick payback on the investment. In many instances, these facilities have located in entertainment cores in established metropolitan markets, not in new communities. In today's new demographic vacuum, many population centers have sprung up without a bowling establishment. It is difficult to obtain accurate figures on the number of new bowling centers that have been built in the U.S. in the last decade, but it appears to be about 40 to 50 a year, which amounts to approximately one percent of the 5,571 centers existing in 2007. This is poor performance, accentuating the aging of existing facilities. At this rate, the industry will take 100 years to replenish/renew/replace/re-invigorate its locations. This is not a good plan to ensure continued prosperity. As the industry wrestles with ways to arrest the decline in league business, and maintain traditional margins and rates of return, it appears an opportunity for growth exists in new markets not currently served by bowling. The company or entrepreneur that develops an economic package and business model that overcomes the fears and concerns existing proprietors have about building new centers is likely to find a ready market for their product. Indeed, it again appears that, "If you build these centers, they will come" if center locations are chosen carefully.

Table of Contents Feed for the Digital Edition of Bowlers Journal International - April 2008

Bowlers Journal International - April 2008 Contents Leading Off Letters Bowlitically Incorrect Calendar Par Bowling The Coach Frame of Mind Inside Line The Truth Be Bowled Tournaments Pro Bowling PBA Bayer Classic PBA Pepsi Championship PBA Don Johnson Classic Regional Roundup Cover Story Up Close Senior Tour The USBC Move USBC Convention Pattern Play Anniversary Flashback Time Capsule Media Beat No Holes Barred Shop Talk Spotlight Marketplace Hall Marks Profit Prophet Advertisers' Index Classified Advertising Intelligencer Business Calendar Business People Strikes Me

Bowlers Journal International - April 2008

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