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Chuck E. Cheese's
Company typePublic company
(NYSECEC)[1]
IndustryFamily entertainment centers[1], fast food
FoundedSan Jose, California, U.S. (1977 (1977))[2]
FounderNolan Bushnell[3]
Headquarters,
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 American family entertainment centers. Chuck E. Cheese's is the main brand of CEC Entertainment, Inc., with its headquarters 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 mainly directed at younger children.[3] The brand is represented by Chuck E. Cheese, an anthropomorphic rat.[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 1991–92, Showbiz Pizza Time, Inc. unified the two brands into Chuck E. Cheese's Pizza.[5] In 1994, Chuck E. Cheese's Pizza underwent a redesign, changing to Chuck E. Cheese's by 1995.[2] In 1998, Showbiz Pizza Time, Inc. was renamed to CEC Entertainment, Inc.[1][2] In 2007, the company celebrated its 30th anniversary,[2] and as of May 2009, it operates 542 restaurants.[1][4]

Corporate history

Chuck E. Cheese's, originally referred to as Chuck E. Cheese’s Pizza Time Theater, 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, and was labeled as the first family restaurant to integrate food, cheap animated entertainment, and an indoor arcade.[2][3] In 1978, Bushnell purchased the Pizza Time Theatre concept from Atari's then-corporate parent, Warner Communications.[8]

Franchising

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

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]

Showbiz Pizza Place Inc.

In November 1978, 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, Brock and Fechter formed “Showbiz Pizza Place Inc”, severing Brock's business relationship with Bushnell.[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, Missouri.[2]

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 changed its name to Brock Hotel Corporation and moved its headquarters to Irving, Texas.[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.

Merger

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, thus resulting in the filing of Chapter 11 bankruptcy for Pizza Time Theatre Inc. Showbiz then bought the foundering company, recreating itself as Showbiz Pizza Time Inc.[2]

Restructuring

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 was changed to Chuck E. Cheese's in 1994 during a redesigning of the concept.[2] In 1998, the company renamed itself CEC Entertainment, Inc.. Part of this renaming was related to a move from the NASDAQ to the NYSE,.[1][2] In 1999, CEC Entertainment, Inc. bought out competitor Discovery Zone.[10] Chuck E. Cheese's celebrated its 30th anniversary in 2007.[2] Currently, there are 542 open locations throughout North America, South America, and the Middle East.[1][4]

Mascot redesign

File:Chuck E. Cheese 2012.jpg
The 2012 revamped Chuck E. Cheese's mascot with a younger look and an electric guitar.

In 2012, Chuck E. Cheese's announced that their Chuck E. Cheese mascot would receive a major makeover to make the character look more like a rockstar.[11] Jaret Reddick, lead singer of the musical group Bowling for Soup, was hired as the new voice of Chuck E. Cheese,[12] who had been voiced by Duncan Brannan for many years.

Products

While its primary focus is pizza, Chuck E. Cheese's also offers cold-cut sandwiches, buffalo wings, salad bars and desserts. Some stores are also used as "test" locations which feature new Chuck E. Cheese foods.[13] Certain Chuck E. Cheese locations also offer beer and wine.[14]

Starting on November 13, 2012, new gluten-free menu items are available at more than 500 locations in the U.S. and Canada. This currently includes a choice of a personal-size cheese pizza and an individual chocolate cupcake.[15]

Entertainment

Arcade and currency

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

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 and skill games. Some locations will no longer use tokens, and instead use a refillable card to access credits, which replace tokens; and points, which replace tickets.[18]

Animatronic figures

Along with the arcade, the other main draw for the restaurants since the beginning was its animatronic show, until the mid-1990s. More recently, less attention has been placed on animatronics. However, there are now several different styles of animatronic shows in use within the company, depending on when the restaurant opened, whether it was renovated, and other factors.[19]

When the first location opened in 1977, the animatronic characters were featured in framed portraits hanging on the walls of the main dining area, but they are no longer in use today. The show featured Crusty the cat (the first character to face retirement as he was soon replaced with Mr. Munch in 1978), Pasqually the singing chef, Jasper T. Jowls, and the main focus of the show, Chuck E. Cheese.[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. They achieved this by applying a cosmetic change to the existing robot, as well as a change of stage backdrop, to match the performer.[21][22]

Beginning in 1998, the company's show installed into 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 entirely.

The members that perform in the animatronic show are:[24]

  • Chuck E. Cheese — vocals
  • Helen Henny — vocals
  • Mr. Munch — vocals, keyboards
  • Jasper T. Jowls — vocals, guitar
  • Pasqually — vocals, drums

Costumed shows

There are two types of costumed shows used by Chuck E. Cheese's: the LIVE! show and the Road show. The LIVE! show is performed at the front of the stage in the showroom, whenever a child is celebrating a birthday. It consists of a rendition of "Happy Birthday to You", sung to the child that is celebrating the birthday. A costumed Chuck E. Cheese dances with the guests and sings, while being accompanied by the cast members.[25] The Road show is a performance by a costumed Chuck E. Cheese character, and is performed outside the normal showroom. Children are gathered via the public announcement system and dance to win free tickets.

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 Packer, Linda (1979-10). "Catering To Kids" (PDF). Food Service Marketing. pp. 46–7. {{cite news}}: Check date values in: |date= (help)
  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.
  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. {{cite news}}: Check date values in: |date= (help)
  8. ^ a b c d e f g h i j k Kinkead, Gwen (1982-07). "High Profits from a Weird Pizza Combination" (PDF). Fortune. pp. 62–6. {{cite news}}: Check date values in: |date= (help)
  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. {{cite news}}: Check date values in: |archivedate= (help)
  11. ^ "Chuck E. Cheese: Pizza chain mascot gets an overhaul". The Christian Science Monitor. Retrieved 2012-10-13.
  12. ^ Choi, Candice (July 5, 2012). "Chuck E. Cheese transforming into a rock star". Chicago Sun-Times. Retrieved July 5, 2012.
  13. ^ "Nutritional Information" (PDF). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. 2009. Retrieved 2009-05-13. {{cite web}}: Unknown parameter |month= ignored (help)
  14. ^ Lieberman, Al; Esgate, Patricia (2002). "Location-Based Entertainment and Experiential Branding". The Entertainment Marketing Revolution (PDF) (Illustrated ed.). FT Press. p. 272. ISBN 0-13-029350-4. 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)
  15. ^ http://www.chuckecheese.com/new-glutenfree-offerings
  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.
  20. ^ "Pizza Time Theatre Program" (PDF). 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. ^ Corporate site – Entertainment
  25. ^ "Birthday Parties" (PHP). Chuck E. Cheese's Official Site. CEC Entertainment, Inc. Retrieved 2009-03-03.