The story of opening the WARPOINT VR park in Naberezhnye Chelny city
In this article, we discuss the real story behind opening a WARPOINT VR Park franchise. We talked with our partner about the costs involved in opening a VR park, the payback period, and how to make WARPOINT a household name.
Vadim, a partner from Naberezhnye Chelny
Information about our Partner: An entrepreneur with a business in dentistry and online sales of medical equipment.
Despite initial fears, especially with the onset of COVID-19 restrictions and the lack of traffic in shopping centers, our partner believed in the idea.
Payback Period: 8 months.
Total Investment: 4.5 million rubles.
Partner’s Quote: "WARPOINT is an amazing product not only for children and birthdays but also for adults. We need to develop the product from all angles."
The launch story
Vadim launched the VR park in Naberezhnye Chelny in 2020, at the beginning of the COVID-19 quarantine. There were many fears and doubts about whether the business would be profitable at all, as there was no traffic in the shopping centers during the pandemic. Vadim visited a neighboring city to play WARPOINT himself to understand the product and believed in the game!
The first location paid off in 8 months! A year later, Vadim launched the second VR park with a double VR arena in his city, which has a population of 600,000 people.
Let's go back to the beginning. The renovation of the first location began during the COVID-19 period, and with no traffic in the shopping center, the renovation process was quite comfortable. However, not everything went according to plan: the contractor delayed the renovation work, and it was necessary to urgently find another team that could complete the renovation efficiently and on time.
While launching the first and second parks, the management company helped establish processes in the sales department to ensure revenue became predictable and consistent. The WARPOINT team is always in touch: they set up the process from a technical point of view and explained the nuances of the sales managers' work.
Currently, Vadim operates two parks: a VR park with a standard-sized VR arena and a second park with a double VR arena. Despite the population of Naberezhnye Chelny being 600,000 people, Vadim recoups his investment in opening the park within 8 months, while the average payback period among franchisees is 11 months.
The first location paid off in 8 months! A year later, Vadim launched the second VR park with a double VR arena in his city, which has a population of 600,000 people.
Let's go back to the beginning. The renovation of the first location began during the COVID-19 period, and with no traffic in the shopping center, the renovation process was quite comfortable. However, not everything went according to plan: the contractor delayed the renovation work, and it was necessary to urgently find another team that could complete the renovation efficiently and on time.
While launching the first and second parks, the management company helped establish processes in the sales department to ensure revenue became predictable and consistent. The WARPOINT team is always in touch: they set up the process from a technical point of view and explained the nuances of the sales managers' work.
Currently, Vadim operates two parks: a VR park with a standard-sized VR arena and a second park with a double VR arena. Despite the population of Naberezhnye Chelny being 600,000 people, Vadim recoups his investment in opening the park within 8 months, while the average payback period among franchisees is 11 months.
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I calculated the return on investment (ROI) coefficient, which is 110%, and realized that WARPOINT is a place worth investing in.
Strengths and management nuances of a VR park
In the first months of launching a park, the owner needs to put in a lot of effort and be highly involved in the business, as the park is just starting up, and working “remotely” won’t work. In the initial months, Vadim focused on local PR and recruiting staff to build an efficient team.
Vadim is an entrepreneur and a member of several city communities where he shares about his business. In the first months of the launch, Vadim organized a tournament among dentists, gathering 17 teams! His team tested all the processes and faced all the challenges of organizing tournaments. After this tournament, Vadim gathered another 15 teams of entrepreneurs and held another tournament! This is how his initial revenue was formed.🔥
“We thought it would be a quiet opening, but this was our first experience of opening a franchise business. We hired a manager, but he turned out to be lazy. We realized the need to track tasks in some software to monitor their completion. We hired another manager,” Vadim shared.
Various motivation systems were developed for different employee positions, encouraging them to increase the average check rather than just work for the shift. Each employee has their key performance indicators, and Vadim rewards his employees not only with money; an employee can choose a gift if they become the employee of the month.
Vadim is an entrepreneur and a member of several city communities where he shares about his business. In the first months of the launch, Vadim organized a tournament among dentists, gathering 17 teams! His team tested all the processes and faced all the challenges of organizing tournaments. After this tournament, Vadim gathered another 15 teams of entrepreneurs and held another tournament! This is how his initial revenue was formed.🔥
“We thought it would be a quiet opening, but this was our first experience of opening a franchise business. We hired a manager, but he turned out to be lazy. We realized the need to track tasks in some software to monitor their completion. We hired another manager,” Vadim shared.
Various motivation systems were developed for different employee positions, encouraging them to increase the average check rather than just work for the shift. Each employee has their key performance indicators, and Vadim rewards his employees not only with money; an employee can choose a gift if they become the employee of the month.
Best practices from WARPOINT partners: how to profitably manage a VR park
Our partner shared his experience, and we compiled a list of best practices to help in the development of your VR park.
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Implement Franchise Business Processes and Utilize Management Company ExperienceThe management company can genuinely help, as they have experience managing over 200 locations. Utilizing their expertise ensures a faster return on investment. - Organize the Recruitment Process and Work with EmployeesUse hiring services to find an effective team. A well-organized recruitment process is essential for building a strong team.
- Promote WARPOINT EverywhereShare about WARPOINT at every possible event and in all communities you are part of. Increased visibility leads to greater success.
- Develop a Local PR PlanInclude placements in regional local media, attending events, and maximizing awareness about your business. Effective local PR can significantly boost your park's presence.
Implement Your Own Tools
If you have a tool you’ve previously used and know it can help in WARPOINT, give it a try. For example, Vadim implemented a CRM system he was familiar with, which allowed him to comfortably organize tasks for employees at various levels. He also built his own employee adaptation system by combining his personnel management experience with recommendations from the management company and the online academy knowledge base for our partners.
If you have a tool you’ve previously used and know it can help in WARPOINT, give it a try. For example, Vadim implemented a CRM system he was familiar with, which allowed him to comfortably organize tasks for employees at various levels. He also built his own employee adaptation system by combining his personnel management experience with recommendations from the management company and the online academy knowledge base for our partners.
Stay in Touch with Your Partner Manager
Your partner manager is familiar with the experiences of other locations and can offer tools that have been tested elsewhere. This allows you to predict how these tools might work in your location.
Your partner manager is familiar with the experiences of other locations and can offer tools that have been tested elsewhere. This allows you to predict how these tools might work in your location.
Participate in the WARPOINT Conference
At the conference, partners interact with the management company team. Vadim created a task list for further development during these interactions.
At the conference, partners interact with the management company team. Vadim created a task list for further development during these interactions.
WARPOINT is an amazing product not only for children and birthdays but also for adults. It needs to be developed from all angles.
Watch Vadim's full interview on our YouTube channel
Using the experience of successful WARPOINT franchisees and adapting their best practices to your conditions.
If you have any questions ask us by email: hello@warpoint.com
If you have any questions ask us by email: hello@warpoint.com
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