Many can remember the time when they hoped for a birthday party or a Saturday visit to a Chuck E. Cheese, where a kid could be a kid; and now, thanks to a group known as Apollo Global Management, LLC, many kids can still hope for the same. After a struggle with finances for the famous business, those in charge have now made a deal to sell all restaurants to Apollo.
In a deal made just recently, the owner of Chuck E. Cheese has sold the parent company of the businesses for over $1 million dollars. Apollo will be acquiring all of the stores owned by the franchise and all of the debt as well.
The company was founded in 1977 by Nolan Bushnell and has always been known as a place where kids can enjoy pizza, games and theatrical shows with company mascots, such as a rodent with an electric guitar. Over the past several years, however, the company has been struggling to bring in the sales. Their solution was to step up marketing and redesign the rodent mascot, a move that still did not bring profits up.
Overall there are 577 locations of Chuck E. Cheese in 47 states and 10 foreign countries. Apollo Global Management, LLC will be in charge of running them all after the recent deal.
Business experts are now debating whether this sale will help turn profits around for the beloved kid’s restaurant. Apollo Global Management, LLC has always been a company known, in the past, for buying suffering chains and turning them around then re-selling them years later. While some say that turning the business around will be an easy move, others say that increasing the business’s profit will be much harder than it seems.
Strategists of other businesses stated in USA Today that the main problem with Chuck E. Cheese is that it never has figured out a way to appeal to parents. They say that the restaurant has always marketed very well to kids; but, because of the lack of interest for adults, it is hard to get parents in the door.
Many parents are supporting those statements in comments regarding the sale of Chuck E. Cheese stating that they just do not see what all of the fuss is about and that there are many other competing places where there kids can go to enjoy a good time.
Marketing is not the only issue, however, as turning the business around will also involve pulling it out of debt, lowering operating costs and increasing profits.
Apollo Global Management, LLC is already working on creating a strategic plan for getting Chuck E. Cheese back on its feet and creating a more appealing business from a business that has simply lost its edge. Reports of how much debt the business is currently in have not been released; but, after debt, the deal’s value for all of the businesses combined was placed at $1.3 million.
The deal on Chuck E. Cheese’s is now final. It will be under new management and is expected to see many changes over the course of time.
By Crystal Boulware