Source QSR
The brand received a $350 million investment to revamp its fun centers.
In the four years since Chuck E. Cheese’s parent company CEC Entertainment filed for bankruptcy, the brand has made good on its promise to deliver on its long-term strategic goals. The company has undergone a significant transformation, including remodeling its locations, launching branded partnerships, introducing virtual dining concepts, and rolling out an unlimited monthly membership program.
Alejandra Brady, head of public relations and crisis communications, says the brand deployed six key strategies to emerge from restructuring stronger than ever. These include rethinking promotions and pricing to drive traffic, launching nationwide loyalty programs, menu and technological innovations, international expansion, growing its licensing and entertainment presence, and expanding its Peter Piper Pizza franchise.
As part of the restructuring, Chuck E. Cheese received a $350 million investment to revamp its fun centers to meet the expectations of modern families. Today’s locations feature an interactive dance floor, free Wi-Fi, device plug-ins for parents, trampoline zones, game enhancements, and digital ordering kiosks.
“We are a 47-year-old brand, and we’ve evolved every couple of decades to stay relevant. Atari and ball pits used to be popular, but today’s parents seek immersive experiences, bright lights, and active play,” Brady says. “We needed to completely redesign our fun centers and modernize the look and feel of them for the next generation, and this iteration of Chuck E. Cheese is driven by data and insights to steer us in the right direction.”
In late 2023, Chuck E. Cheese introduced its first-ever Grown-Up Menu, expanding its appeal across multiple generations. The menu includes the brand’s iconic pizza, wings, meatballs, and desserts created by celebrity chef Buddy Valastro. The inspiration for this innovation came from Pasqually’s Pizza and Wings, a virtual concept launched during the pandemic when dining rooms were closed. Customer feedback revealed a demand to bring these offerings into Chuck E. Cheese locations.
“We created this virtual kitchen when we didn’t have enough traffic coming into stores, but we wanted to keep our management team employed,” Brady says. “Through research and development, we learned that the appetite of the guests ordering from Pasqually’s could be brought into the four walls. It also gave our existing customers more options beyond cheese and pepperoni pizzas.”
Reconnecting with families since the pandemic has been a challenge amid the brand’s resurgence, but Brady believes being flexible and open to change has allowed Chuck E. Cheese to rebuild customer relationships.
A new management team and an influx of investments have helped refocus the brand on innovating based on insights from research groups. This includes surveying children and their parents and meeting them where they are—whether it’s through social media or on YouTube. Chuck E. Cheese’s global entertainment division has revamped its YouTube page to stay in sync with current trends, continuing to monitor what customers are asking for, decade after decade.
“Chuck E. Cheese has multi-generational appeal because we have grandparents who are bringing their grandchildren, and those grandparents brought their kids here 40 years ago,” Brady says. “We have a built-in amount of trust already. We just have to continue to innovate and do things that matter for each changing generation.”
Melissa McLeanas, vice president of global licensing, media, and branded entertainment, echoes Brady’s sentiments. Since 2020, Chuck E. Cheese has grown its licensing program to include nearly 30 partners, multiple collaborations, and entertainment content for various platforms.
“We’ve got this great core business, and our fun centers are still very much a rite of passage, but entertainment is being consumed in new ways by our families. Our dedicated division adds a new revenue stream, but most importantly, it takes our brand outside of the four walls and appeals to different generations who have grown up with Chuck E. Cheese,” McLeanas says.
Toys, games, apparel, original music, and animated content based on the Chuck E. Cheese character program aim to drive awareness and put the brand in front of a new audience. McLeanas says leveraging entertainment and collaborations helps boost the brand’s value for modern consumers while staying true to its heritage.
“There are so many versions of Chuck E. Cheese, but we’re leaning into it and aligning ourselves with the right partners to create a space for everyone,” McLeanas says. “You might see us in Hot Topic or Spencer’s, but also in the toy section of Walmart. The licensing program allows us to play in lots of different spaces and remind those who haven’t visited in a while to come back.”
Last month, Chuck E. Cheese introduced an unlimited monthly membership program starting at $7.99. Insights revealed that today’s parents want to play with their children, but financial concerns, including inflation, often limit them. Using these insights, the brand restructured its pricing strategies, which has paid off—more than 350,000 Summer Fun Passes were sold.
“We knew families today were struggling, so we asked ourselves how we could accommodate them,” Brady says. “The value is tremendous and so positively received. Parents are gravitating toward it, and it’s allowing us to stay competitive even though the world has changed so much. Showing the guest the value in what we provide has paid off for us.”
