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SMAAASH crosses 300 crore revenue mark in Jan-Dec 2019

By Retail4Growth Team | January 13, 2020

Smaaash F&B revenue contributed about 100 Cr+ from 17 F&B locations in which it runs F&B with Games attractions

Smaaash achieves Rs 300 crore sales mark about seven years after it opened its first outlet. With 41 outlets as of December 2019, Smaaash's per store gross sales of Rs 350-600 per sqft on an average was at par with significantly higher than other popular restaurant & entertainment startups which entered during the same time as per the size & format of the store. We have been selling our proprietary VR (virtual reality) and simulator games internationally, which have been installed in 30 plus countries until now,” Shripal Morakhia, its founder said. Games product sales to various other clients constitute about 36 Cr+ sales in the calendar year of 2019. 

Smaaash F&B revenue contributed about 100 cr+ from 17 F&B locations in which it runs F&B with Games attractions. SMAAASH F&B is one of its kind with a widespread food variety and multiple choices on drinks. The menu at each location is specially curated to give you experience with games and unlimited access to great food. Live music in Smaaash strikes a chord with our customers. 

Shripal Morakhia, SmaaashSmaaash received 5 million-plus footfall in our centres in this duration of 1 year & we are planning to increase this by 10% in the calendar year 2020-21. Family Entertainment Centers (FECs) like Smaaash are being touted as the next big thing in the field of entertainment in shopping malls in India. These are small amusement parks or zones that serve local communities in all cities and are designed to keep the entire family engaged, for at least 4-5 visits per year on an average vs any amusement park where the visit is restricted to maximum twice a year.  

The company acquired bowling venture bluO Entertainment from PVR and Major Cineplex Group and Sri Venkateshwara Multiplexes-owned SVM Bowling and Gaming for an undisclosed amount in the previous years. “The gaming and entertainment business benefited greatly from this consolidation, as the scale significantly enhanced operational efficiencies and brand value & helped us become India's biggest entertainment FEC chain". Morakhia added.

The Ever-Growing Gaming Industry- with players like Nazara Technologies, NODWIN Gaming, Passion Gaming,  Dream 11 & other, the entertainment gaming space is booming at a fast pace. Compared to our global peers, India’s top entertainment centres are smaller in size and limited in terms of their offerings. The revenue from the sale of game cards accounts for approximately 75-85% of total revenues for most Indian centres across all FECs. In contrast, sale of game cards accounts only account for 45-55% of revenue in developed countries; the rest comes from food and beverage (F&B) sales and merchandising. “F&B sales and merchandising would contribute more to revenues in the coming years. We’re already seeing an uptick in our non-games revenues,” says Morakhia. Some of the key players that Smaaash competes with in the world are Dave & Buster’s, CEC Entertainment, Inc., Cinergy Entertainment, KidZania, Scene 75 Entertainment Centers, The Walt Disney Company, Lucky Strike Entertainment, FunCity, and LEGOLAND Discovery Center amongst others. 

“At Smaaash in the last 1 year, we have upgraded our centres by adding new arcade games, VR rides adapted for indoor functionality, and other gaming options like laser tag, Smaaash edutainment, Carnival games etc. In addition to this, we have also made good use of the extra space by restructuring our games & restaurant areas and adding major attractions like trampoline wherever possible. The timely up-gradation cycle at Smaaash serves as a perfect philosophy of what we work on for our guests where we say- at Smaaash, friends become family & family becomes friends,” the company said in a statement.

With the increase in work pressure, not many people have the time to spend an entire day at theme parks and resorts. Family Entertainment Centers like Smaaash have provided them much needed entertainment avenues at convenient locations close to their homes. Increasing disposable incomes, coupled with limited leisure time, has led to the exponential growth of FECs.  

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