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Chuck E. Cheese

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Chuck E. Cheese's
Company typePublic company (NYSE: CEC)[1]
IndustryFamily entertainment centers[1]
Founded1977 (San Jose, California)[2]
FounderNolan Bushnell[3]
Headquarters
Irving, Texas
,
United States[1]
Number of locations
542 stores (2009)[4]
Area served
North America, South America
Key people
Nolan Bushnell (Founder)[3]
Michael Magusiak (CEO)[4]
ProductsPizza, video games, kiddie rides, birthday parties[1]
RevenueUS$248,133,000 (1st Q.2009), Increase 1% from 1st Q.2008[4]
US$59,214,000 (1st Q.2009) Increase from 1st Q.2008[4]
US$34,052,000 (1st Q.2009) Increase <1% from 1st Q.2008[4]
Total assetsUS$725,868,000 at 2009-03-29 Decrease 1% from 4th Q.2008[4]
Total equityUS$725,868,000 at 2009-03-29 Decrease 1% from 4th Q.2008[4]
SubsidiariesShowbiz Pizza Place & Chuck E. Cheese's Pizza Time Theatre (Merged into Chuck E. Cheese's)[5]
Websitewww.chuckecheese.com

Chuck E. Cheese's (formerly Chuck E. Cheese's Pizza Time Theatre and Chuck E. Cheese's Pizza) is a chain of family entertainment centers. Chuck E. Cheese's is the main brand of CEC Entertainment, Inc., (NYSE: CEC) with its headquarters based in Irving, Texas.[1]

The concept is a sit-down pizza restaurant, complemented by arcade games, amusement rides, an animatronic show, and other diversions, such as climbing equipment, tubes, and slides. All of which being directed mainly for younger children.[3] The brand is represented by Chuck E. Cheese, an anthropomorphic mouse.[3][6]

The company was founded as Chuck E. Cheese's Pizza Time Theatre by Nolan Bushnell in 1977, officially being labeled as the first family restaurant to integrate food, animated entertainment, and an indoor arcade.[3] Pizza Time Theatre and Showbiz Pizza Place merged in 1984, bringing both concepts under the wing of Showbiz Pizza Time, Inc..[2] In 1991/2, Showbiz Pizza Time, Inc. unified the two brands into Chuck E. Cheese's Pizza.[5] In 1994, Chuck E. Cheese's Pizza underwent redesigning, changing to Chuck E. Cheese's by 1995.[2] In 1998, Showbiz Pizza Time, Inc. is renamed to CEC Entertainment, Inc., removing any mention of Showbiz Pizza Place, Inc., the company that CEC Entertainment, Inc. was based from.[1][2] In 2007, the company celebrated its 30th anniversary,[2] and as of May 2009, the company currently operates 542 restaurants.[1][4]

Corporate history

Chuck E. Cheese's, originally referred to as Chuck E. Cheese’s Pizza Time Theatre, was founded by Atari founder Nolan Bushnell.[3] Bushnell’s experience in the amusement park industry, as well as his fondness of The Walt Disney Company, was influential in the conceptualization of the Pizza Time Theatre concept.[7] The first location opened in San Jose, California in 1977, which was labeled as the first family restaurant to integrate food, animated entertainment, and an indoor arcade.[2][3] In November 1978, Bushnell left Atari to then purchase the Pizza Time Theatre concept from Atari's then-corporate parent, Warner Communications.[8] As the restaurant became increasingly successful, he began to franchise; resulting in a co-development agreement between Bushnell and Robert Brock of Topeka Inn Management in 1979. The agreement handed Brock exclusive franchising rights for opening Pizza Time Theatres in sixteen states across the southern and midwestern United States,[8] while also forming a company subdivision; “Pizza Show Biz”, to develop the Pizza Time Theatres.[8]

In November 1979, Brock met Aaron Fechter of Creative Engineering, Inc. Concerned that Fechter’s animatronics would be too strong a competition for Bushnell’s work, Brock requested that Bushnell release him from the co-development agreement, citing misrepresentation.[8] In December 1979, him and Fechter formed “Showbiz Pizza Place Inc”, severing his business relationship with Bushnell.[8][8][9] Showbiz Pizza Place was conceptually identical to Pizza Time Theatre in all aspects except for animation; which would be provided by Creative Engineering.[8] Showbiz Pizza Place opened its first location on March 3, 1980, in Kansas City, MO.[2]

A Chuck E. Cheese's facility under the now defunct title of "Chuck E Cheese's Pizza".

Upon the opening of Showbiz Pizza Place, Bushnell sued Brock and Topeka Inn Management over breach of contract.[8] Brock immediately issued a counter-suit against Bushnell; citing misrepresentation.[8] The court case began in March 1980, eventually settling out of court; with Showbiz agreeing to pay Pizza Time Theatre a portion of its profits over the following decade.[8] During this period, Topeka Inn Management also changes its name to Brock Hotel Corporation.[8] Both restaurants experienced increased success as the video game industry became more robust;[8] and to maintain competition, both franchises continually modified and diversified their animatronic shows.

In 1981, Pizza Time Theatre went public; however, the evolving video game industry resulted in significant losses for Pizza Time Theatre; losing $15 million in 1983, and by 1984, Bushnell’s debts were insurmountable, resulting in the filing of Chapter 11 bankruptcy for Pizza Time Theatre Inc. Showbiz then bought the floundering company, recreating itself as Showbiz Pizza Time Inc.[2] After the merger, both restaurants continued operating under the different titles, while major financial restructuring had begun,[2] eventually becoming publicly traded in 1989, with sales increasing by 8.3%.[1][2] During this period, Creative Engineering began to sever ties with Showbiz Pizza Time (they officially left the company in September 1990), eventually resulting in the unification of its mixed characters. By 1992, all restaurants assumed the name of Chuck E. Cheese’s Pizza.[5] However, the name is changed to Chuck E. Cheese's in 1994, during a redesigning of the concept.[2] In 1998, the company renamed itself CEC Entertainment, Inc.,[1][2] and in 1999, bought out competitor Discovery Zone.[10] Recently, in 2007, Chuck E. Cheese's celebrated its 30th anniversary.[2] Currently, there are 542 open locations throughout North America, South America, and Africa.[1][4]

Products

While its primary focus is pizza, Chuck E. Cheese's also offers sandwiches, hot dogs, wings, side dishes and desserts.[11] Certain Chuck E. Cheese locations also offer beer.[12]

Health concerns

In December 2008, after a co-worker claimed to have gotten ringworm from a Chuck E. Cheese's location, Momlogic.com and germ expert Dr. Charles P. Gerba swabbed three Chuck E. Cheese locations in California and tested the samples for bacteria.[13][14] Testing revealed numerous types of bacteria, with one swab containing a presence of Serratia rubidaea, a rare cause of respiratory tract, wound, and blood infections.[15] In response, a Chuck E. Cheese's spokesperson claimed that the restaurant cleans and disinfects the tables and games every evening.[13]

Galaxy 5000

Entertainment

Arcade

From the time of the company's formation to today, one of the main draws for the stores is the arcade.[1][3] The arcade games primarily consist of either redemption games or video arcade games.[16]

Currency

The brass tokens issued by the company for use in their arcades exist in numerous varieties and are collected by exonumia enthusiasts. [17] The company is currently testing a card access method for use with their arcade/skill games; where locations will no longer use tokens, and instead use a refillable card to access credits (tokens) and points (tickets).[18] This concept is currently in the testing phase in Irving, Texas, along with nine other locations in the United States.

Animatronic figures

Along with the arcade, the other main draw for the stores is its animatronic show. From the time of the company's formation through the mid-1990s, the company's animated characters were a main draw for the stores. More recently, less attention has been placed on animatronics. There are several different styles of animatronic shows in use within the company, depending on when the store opened, whether it was renovated, and other factors.[19]

The first version of the animatronic show, which was used in the San Jose location, was referred to as the "Pizza Time Players", and featured Crusty the Cat, Jasper T. Jowls, Pasqually, and the Warblettes performing with Chuck E. Cheese in a "theater" where customers could eat their pizza with the characters in picture frames overhead.[3][20] Later restaurants also added "Cabaret" shows in separate rooms of each restaurant.[3] They also frequently changed out the sole female character, named Helen Henny, in the main show, which involved a cosmetic change to the existing robot as well as change of stage backdrop to match the performer.[21][22]

The company's current show that is installed into all new stores, referred to as "Studio C", consists of a single animated Chuck E. Cheese character alongside large television monitors, lighting effects, and interactive elements.[23] In some markets, the company has also tried a new store concept that omits the animated show.

Costumed shows

  • LIVE! show

The LIVE! show is performed at the front of the stage in the showroom. The costumed Chuck E. Cheese dances with the guests and sings, while being accompanied by the cast members. A LIVE! Show consists of singing Happy Birthday CEC-Style to the birthday kid.[24][25]

  • Road show

The Road show is a performance by a costumed Chuck E. Cheese character, and is performed outside the normal showroom.[24] Children are gathered via the public announcement system and can dance to win free tickets.[24]

See also

References

  1. ^ a b c d e f g h i j k "Investor Information" (PHP). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. Retrieved 2009-03-03.
  2. ^ a b c d e f g h i j k l m "Company History" (PHP). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. Retrieved 2009-05-04.
  3. ^ a b c d e f g h i j Packer, Linda (1979-10), "Catering To Kids" (PDF), Food Service Marketing, pp. 46–7 {{citation}}: Check date values in: |date= (help)CS1 maint: date and year (link)
  4. ^ a b c d e f g h i "CEC Entertainment Reports Financial Results for the First Quarter of Fiscal 2009; Revises Previously Scheduled Date for Investor Conference Call" (Press release). Business Wire. 2009-04-30. Retrieved 2009-05-04.
  5. ^ a b c Prewitt, Milford (1990-09-10), "ShowBiz Parent Merges Concepts Into One Big Pie" (PDF), Nation's Restaurant News, pp. 12–3{{citation}}: CS1 maint: date and year (link)
  6. ^ "Entertainment" (PHP). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. Retrieved 2009-05-12.
  7. ^ "Pizza Time's Vaudeville Theatre" (PDF), Western Foodservice, 1979-03 {{citation}}: Check date values in: |date= (help)CS1 maint: date and year (link)
  8. ^ a b c d e f g h i j k l Kinkead, Gwen (1982-07), "High Profits from a Weird Pizza Combination" (PDF), Fortune, pp. 62–6 {{citation}}: Check date values in: |date= (help)CS1 maint: date and year (link)
  9. ^ "Rock-afire Explosion Brochure" (PDF) (Press release). Creative Engineering, Inc. 1980. Retrieved 2009-03-03.
  10. ^ Zuber, Amy (1999-07-05), "Chuck E. Cheese's 'traps' Discovery Zone", Nation's Restaurant News, vol. 33, no. 27, Irving, Texas, p. 1, ISSN 0028-0518, archived from the original on ????-??-??, retrieved 2009-04-08 {{citation}}: Check date values in: |archivedate= (help)CS1 maint: date and year (link)
  11. ^ "Nutritional Information" (PDF). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. 2009. Retrieved 2009-05-13. {{cite web}}: Unknown parameter |month= ignored (help)
  12. ^ Lieberman, Al; Esgate, Patricia (2002). "Location-Based Entertainment and Experiential Branding". The Entertainment Marketing Revolution (PDF) (Illustrated ed.). FT Press. p. 272. ISBN 0130293504. Retrieved 2009-05-13. {{cite book}}: External link in |chapterurl= (help); Unknown parameter |chapterurl= ignored (|chapter-url= suggested) (help); Unknown parameter |lastauthoramp= ignored (|name-list-style= suggested) (help)
  13. ^ a b "Testing Chuck E. Cheese Restaurants For Bacteria Will Probably Give You Nightmares". The Consumerist. 04 December 2008. Retrieved 2008-12-31. {{cite web}}: Check date values in: |date= (help)
  14. ^ "Is Chuck E. Cheese's Really Chuck E. Diseases?". Momlogic.com. 2008-12-05. Retrieved 2008-12-31.
  15. ^ "Chuck E. Cheese's Investigation". Momlogic.com. 2008-12-05. pp. 3/14. Retrieved 2008-12-31.
  16. ^ "Games & Rides" (PHP). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. Retrieved 2009-05-13.
  17. ^ "Chuck E. Cheese Tokens". Forrest's Token Page. Retrieved 2009-03-03.
  18. ^ S., Travis. "CEC Token Cards" (CSS). Showbiz Pizza.com. Retrieved 2009-03-03.
  19. ^ S., Travis. "Pizza Time Theatre: Stage Shows" (CSS). Showbiz Pizza.com. Retrieved 2009-03-03. {{cite web}}: External link in |work= (help)
  20. ^ "Pizza Time Theatre Program" (PDF) (Press release). ATARI, Inc. 1977. Retrieved 2009-03-03.
  21. ^ "Pizza Time Theatre Balcony Show Photograph #1". 1981. Retrieved 2009-03-03.
  22. ^ "Pizza Time Theatre Balcony Show Photograph #2". 1980s. Retrieved 2009-03-03.
  23. ^ "Chuck E.'s New Look" (PDF) (Press release). Garner Holt Productions. 1998. Retrieved 2009-03-03.
  24. ^ a b c "Birthday Parties at Chuck E. Cheese's". Birthday Party Locations. 2008-12-07. Retrieved 2009-03-03.
  25. ^ "Birthday Parties" (PHP). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. Retrieved 2009-03-03.


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