How to Start a Bowling Alley

Bowling is a good time for everyone, which is why it’s been around forever – there’s evidence that ancient Egyptians even enjoyed the odd game of ten pins! 

Of course, today’s bowling alleys are much more modern, with restaurants, bars, arcades, and easy-to-use technology. And as the pandemic recedes, bowlers are heading back to the lanes in droves and the industry is expecting strong growth for the next five years. 

But before you lace up your bowling shoes, it’s important to know what it takes to launch a business. Luckily, this step-by-step guide has all the insight and information you need to put your bowling alley on track for success. 

Step 1: Decide if the Business Is Right for You

Pros and cons

Before starting a bowling alley, it’s important to weigh the pros and cons. 

Bowling alley industry trends

Industry size and growth

• Industry size and past growth – The US bowling centers industry is worth $3.7 billion in 2022. The recent pandemic caused the industry to decline slightly, but it is back on the rise. ((https://www.ibisworld.com/industry-statistics/market-size/bowling-centers-united-states/))
• Growth forecast – The global bowling market is expected to grow 4.5% annually through 2028. ((https://www.verifiedmarketresearch.com/product/bowling-market/))
• Number of businesses – As of 2022, there are 2,745 bowling centers operating in the United States.

Trends and challenges

Trends within the bowling industry include:

• Vacant big-box stores are becoming a popular place for new bowling alleys. They’re often located in convenient areas for customers with plenty of parking, which is a major plus.
• Cosmic bowling, with colored lights, music, and glow-in-the-dark bowling balls, is becoming more popular.

Challenges within the bowling industry include:

• Rather than traditional bowling alleys, Gen Z and millennials are more inclined to bowl at entertainment complexes with restaurants, driving ranges and arcade games.
• Bowling leagues have lost popularity. Leagues used to provide steady, predictable revenue, but today’s bowling alleys rely more on recreational bowlers. 

What kind of people work in bowling alleys?

• Gender – 43% of bowling alley attendants are women and 57% are men.((https://www.zippia.com/bowling-alley-attendant-jobs/demographics/))
• Average level of education – The average bowling alley attendant is high school educated.
• Average age – The average bowling alley attendant is between 20 and 30 years of age.

How much does it cost to start a bowling alley?

Startup costs for a bowling alley range from $30,000 to $75,000. The average cost is around $47,000. The cost to start your business will greatly depend on the type of facility you lease as well as how much you spend on equipment and accessories. To keep costs down, consider leasing an existing bowling alley. 

You’ll need a handful of items to successfully launch your bowling alley, including: 

• Bowling facility
• Equipment
• Bowling accessories, including balls and shoes
• Concessions
• Maintenance tools

Start-up Costs	Ballpark Range	Average
Licenses and permits	$100-$300	$200
Insurance	$500-$1,000	$750
Marketing and advertising	$750-$1,500	$1,125
Website	$1,000-$2,000	$1,500
Facility rental	$5,000-$10,000	$7,500
Equipment	$17,000-$50,000	$33,500
Bowling accessories	$4,000-$8,000	$6,000
Concessions	$750-$1,000	$875
Employee Wages	$300-$500	$400
Total	$29,400-$74,300	$51,850

How much can you earn from a bowling alley?

The average cost of bowling is $25 per lane, per hour. After facility leasing costs, equipment, employee wages, and maintenance, your profit margin should be around 35%. 

In your first year or two, if you have six lanes you could rent out each one for five hours a day at $25 an hour. This would translate into annual revenue of $274,000. Assuming that 35% margin, you would make a profit of $96,000. As your bowling alley builds a reputation, you could rent each of your lanes for eight hours per day and increase your hourly rate to $30. With annual revenue of $526,000, you’d make a tidy profit of $184,000. 

What barriers to entry are there?

There are a few barriers to entry when it comes to starting a bowling alley. Your biggest challenges will be:

• Finding a suitable facility in a good location
• Startup costs of facility preparation, equipment, and accessories

Step 2: Hone Your Idea

Now that you know what’s involved in starting a bowling alley, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research bowling alleys in your area to examine their services, price points, and customer reviews.You’re looking for a market gap to fill. For instance, maybe the local market is missing a bowling alley with an arcade, additional games or a full-service restaurant. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll be providing lanes, balls, and shoe rentals to customers to enjoy a game of bowling with family and friends. You might also offer food and snacks or alcoholic beverages. Many bowling alleys also have arcade games onsite.

How much should you charge for bowling?

The average cost for a game of bowling is $25 per lane. If you offer concessions, you can charge between $5 and $15 per item. If your bowling alley has a full bar, you could charge $10 to $20 per alcoholic beverage. After factoring in the cost of labor and overhead, expect a profit margin of around 35%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be people of all ages looking to bowl with friends, family, or colleagues. Focus your marketing efforts on social media platforms like Facebook, TikTok, and Instagram.

Where? Choose your bowling alley location

Choosing the right location for your bowling alley is crucial for attracting customers and ensuring its success. Look for an area with high foot traffic and a strong entertainment culture, such as a popular shopping district or a bustling downtown area.

Consider accessibility and convenience, ensuring that the location has ample parking and is easily reachable by public transportation. By strategically choosing the right location, you can establish a profitable and popular bowling alley that caters to a wide range of customers and stands out in the competitive entertainment industry.

You’ll need to purchase or lease a facility for your bowling alley. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

Step 3: Brainstorm a Bowling Alley Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “bowling alley” or “lanes”, boosts SEO
• Name should allow for expansion, for ex: “Roll It Out Bowling Club” over “Senior Bowling Club”
• Avoid location-based names that might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Bowling Alley Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview of the bowling alley business plan, highlighting its key objectives, strategies, and financial projections.
• Business Overview: Detailed information about the bowling alley business, including its mission, vision, location, and legal structure.
• Product and Services: Description of the bowling services offered, including types of lanes, rental equipment, leagues, and any additional amenities such as food and beverages.
• Market Analysis: Examination of the target market, including demographics, psychographics, and trends influencing the demand for bowling entertainment.
• Competitive Analysis: Evaluation of other bowling alleys in the area, assessing their strengths, weaknesses, and identifying opportunities for differentiation.
• Sales and Marketing: Strategies for promoting the bowling alley, attracting customers, and retaining them through advertising, promotions, and customer engagement initiatives.
• Management Team: Introduction of key individuals responsible for the bowling alley’s success, including their roles, qualifications, and relevant experience.
• Operations Plan: Details on day-to-day operations, such as hours of operation, staff requirements, maintenance schedules, and any technology or software used to streamline processes.
• Financial Plan: Projections for the financial performance of the bowling alley, including startup costs, revenue forecasts, and break-even analysis.
• Appendix: Supplementary materials, such as additional financial data, market research findings, and any supporting documents referenced in the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to bowling alleys. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your bowling alley will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a bowling alley. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Bowling Alley Business Licenses and Permits

Starting a bowling alley requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your bowling alley as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as AlleyTrak, Embed, or Clubspeed , to manage reservations, collect payments, and display scoring information. 

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

For your bowling alley, crafting a marketing strategy that strikes a balance between entertainment and community engagement is key. It’s about pinning down a recognizable and appealing brand identity that resonates with both casual bowlers and league enthusiasts. Here’s a rolled-out marketing approach to frame your business for success and spare no detail in attracting a diverse clientele.

Digital Presence and Online Marketing

• Social Media Tournaments: Showcase league tournaments, theme nights, and special events on platforms like Facebook and Instagram to engage with a local audience.
• Local SEO: Optimize your website for local search terms to ensure your alley appears when people are looking for fun activities in your area.
• Online Booking System: Implement an easy-to-use booking system for lanes and parties to streamline the customer experience.

Kickstart Marketing

• Eye-Catching Exterior Signage: Ensure your bowling alley stands out with vibrant signage that can be seen from a distance.
• Bowling Passes and Discounts: Offer special rates for off-peak times or discounts for multiple games to encourage longer stays and repeat visits.
• Email Newsletters: Keep your customers informed and engaged with regular newsletters featuring upcoming events, league information, and special promotions.

Content Marketing and Engagement

• Bowling Tips and Tricks Blog: Share content that helps both beginners and seasoned players improve their game and connect with the sport.
• Customer Spotlights: Feature stories and achievements of league players and regular customers to create a sense of community.

Experiential and In-Person Engagements

• Themed Bowling Nights: Host themed nights such as ‘Retro Bowl’ or ‘Cosmic Bowling’ to attract different demographics and keep the experience fresh.
• Community Leagues and Tournaments: Organize and promote local bowling leagues and tournaments to foster regular attendance and competition.

Collaborations and Community

• Partnerships with Schools and Clubs: Offer special rates or events for schools and community groups to encourage group outings and repeat visits.
• Fundraising Events: Collaborate with charities for fundraising bowling events, which can serve as great community outreach and marketing.

Customer Relationship and Loyalty Programs

• Frequent Bowler Rewards: Create a loyalty program that offers discounts, free games, or food and beverage deals for regular customers.
• Referral Benefits: Encourage patrons to bring friends with incentives for both the new visitor and the referrer.

Promotions and Advertising

• Local Advertising: Place ads in local entertainment guides, radio stations, and community bulletins to attract a broad audience.
• Influencer Nights: Invite local influencers to enjoy a night of bowling, asking them to share their experience with their followers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your bowling alley meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your bowling alley could be:

• Cosmic bowling – fun for the whole family! 
• Throw strikes and share beers with your besties
• Our brand new lanes are right up your alley

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bowling alley, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in bowling for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in bowling alleys. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

As your business grows, you will likely need workers to fill various roles. Potential positions for a bowling alley include:

• Bowling Attendants – Set up lanes, sell concessions, rent shoes
• Maintenance Workers – Repair equipment, keep facilities clean
• Office Manager – Bookkeeping, manage inventory
• Marketing Lead – Manage social media sites, generate new business

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Bowling Alley – Start Making Money!

Running a bowling alley takes a lot of hard work, but there’s nothing better than providing a night of fun for people in your local community. As a bowling alley owner, you’ll make lasting relationships with customers and become the go-to spot for parties and events!

Now that you’re familiar with all the business basics, it’s time for you to take the leap and get started. You’re one step closer to starting the next best bowling alley.