People have been playing board games for a long time, and these games continue to be popular. In 2016, board game sales reached $9.6 billion -- and a lot of the demand was driven by millennials.
Cafes have also become popular in the past few years. Just a few decades ago, cafes were sparse and did most of their business before 10:00 a.m. Today, they’re found on many street corners, and some cafes are right across the street from each other. Additionally, the industry continues to see growth of 7 percent annually.
Board game cafe businesses capitalize on both of these trends, providing a cafe environment where people can play board games. They give people a social place to gather around a fun game. In addition to providing games, some game cafes also offer food and beverages.
Ready to form your LLC? Check out the Top LLC Formation Services.
Learn how to start your own Board Game Cafe and whether it is the right fit for you.
Start a board game cafe by following these 10 steps:
- Plan your Board Game Cafe
- Form your Board Game Cafe into a Legal Entity
- Register your Board Game Cafe for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Board Game Cafe
- Get the Necessary Permits & Licenses for your Board Game Cafe
- Get Board Game Cafe Insurance
- Define your Board Game Cafe Brand
- Create your Board Game Cafe Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your board game cafe. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a board game cafe?
The start-up costs for a board game cafe business are manageable. The main expenses include:
- Leasing a space for the cafe
- Build-out and furniture costs
- Purchasing games for the cafe
- Food preparation and serving equipment (if serving food)
To keep the initial expenses as low as possible, business owners can begin with a basic cafe that doesn’t serve food. This will eliminate the need to purchase food-related equipment, and the remaining expenses can be kept low. Business owners can:
- Lease an inexpensive space that doesn’t need to be modified
- Purchase furniture at garage sales or second-hand stores
- Start with a small library of games
As a business grows, business owners can invest in nicer furniture, more games and food-related equipment.
What are the ongoing expenses for a board game cafe?
The ongoing expenses for a board game cafe business are low. They include rent, utilities and employees’ wages. Occasionally replacing a game might be necessary.
Who is the target market?
Board game cafe businesses appeal to both children and adults. As 3 & Up explains, a cafe may see a lot of children and families during the day. In the evening, the clientele is mostly adults.
How does a board game cafe make money?
A board game cafe makes money by charging customers for playing games. As Mike Lee explains, fee structures are similar to those of bowling alleys. Customers may pay by the visit, hour or game. Many cafes also have private rooms that customers can rent out.
Like bowling alleys, board game cafes may form leagues or tournaments around specific games. Customers who participate in these pay a flat entry fee. The winner may be awarded a gift certificate or another prize that’s funded with part of the entry fees.
How much can you charge customers?
Board game cafe businesses generally charge people a few dollars per visit. For example, 3 & Up charges $5 for 90 minutes of play. Board Game Republic charges $5 for unlimited play.
How much profit can a board game cafe make?
How much a board game cafe business earns depends directly on how many customers it attracts. A busy cafe may bring in tens or even hundreds of thousands of dollars each year. After all, an 8-player game will net a cafe $40 if it charges $5 per person. It takes just seven 8-player games per day to reach $100,000 in annual sales.
How can you make your business more profitable?
Many board game cafe businesses increase their revenue by offering a variety of high-quality snacks and drinks. This increases your business' total revenue, and it also helps keep customers coming back for more food, drink and gaming.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Board Game Cafe Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your board game cafe is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a board game cafe. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
In particular, if you want to offer alcohol at your business, you will need a liquor permit, the specificities of which vary locally.
If you plan to sell food at your board game cafe , you will need licensing from a local health department. All establishments serving food are required to pass a health inspection. Tips for faring well on a health inspection can be found here.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a board game cafe business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your board game cafe business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a board game cafe
The advertising efforts to promote a board game cafe business should be focused on reaching local residents who are interested in playing games together. Placing ads in local papers and magazines is a great way to reach families and adults who play board games. Sponsoring geeky events is another good way to connect with game enthusiasts.
How to keep customers coming back
To keep customers returning, a board game cafe business should offer lots of different games to play. 3 & Up has over 1,100 games, and Board Game Republic carries more than 700. While businesses may initially start with fewer games to keep their upfront expenses low, revenue should be invested in more games as soon as is feasible.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Board Game Cafe in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
TRUiC's Startup Podcast
Welcome to the Startup Savants podcast, where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.
Is this Business Right For You?
Someone who is passionate about board games and enjoys talking to people may like running a board game cafe business. Business owners need to be familiar with many different board games, and they need to be able to connect with others who like these games.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a board game cafe?
Running a board game business involves a lot of interaction with customers. In a typical day, employees:
- Welcome customers
- Recommend games to customers who ask
- Explain the gameplay and rules of new games
- Give games to customers
- Collect games when customers are done playing
When not interacting with customers, employees spend time organizing games and cleaning the cafe.
What are some skills and experiences that will help you build a successful board game cafe?
Learning games themselves isn’t difficult, as games generally come with instructions. A knowledge of games isn’t all that business owners need to run a board game cafe, though.
Business owners also need to be familiar with basic business practices. For example, they need to know how to market their business, how to manage any employees they have and how to handle the business’ finances.
Business owners who don’t have a background in business can gain these skills by taking one or more business courses. It isn’t necessary to earn an MBA, but business owners might want to enroll in a business class at a local community college or take an online course. Coursera, Open Culture and Harvard Business School have many online business courses.
What is the growth potential for a board game cafe?
Most board game businesses operate just a single location. A successful business, however, could franchise and open numerous branches in other locations.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a board game cafe?
When selecting the furniture for a board game cafe business, it’s important to get tables in a variety of sizes. Some people will want to play small two-player games, while other groups will want to play party games that require a big space. There should be tables available for groups of all sizes and that. This will ensure that no one leaves because they didn’t have a properly sized space for their group.
It can also be helpful to start up a social media group dedicated to the board game cafe’s customers. This group will give customers a convenient place to arrange meet-ups and game nights.
How and when to build a team
A board game cafe business may be run as a one- or two-person operation, or it might have a small team of employees. Having employees lets a business be open more hours and makes it easier to serve customers during busy times.
Business owners who are operating on a tight budget can initially open without any employees but hire some as soon as the business’ revenue supports their wages.