Home Biz Operations SMAAASH crosses 300 Cr revenue mark in Jan-Dec 2019

SMAAASH crosses 300 Cr revenue mark in Jan-Dec 2019

SMAAASH crosses 300 Cr revenue mark in Jan-Dec 2019
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Smaaash achieves Rs 300 Cr 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 sq ft 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 a 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. 
 
Smaaash received 5 million-plus footfall in our centers in this duration of 1-year & we are
planning to increase this by 10% in the calendar year 2020-21. Family Entertainment Centers
(FECs) Smaaash is 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 and others, the entertainment gaming space is booming at a fast
pace. Compared to our global peers, India’s top entertainment centers 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 centers across all FECs. In contrast, the 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 centers 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.

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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