Escape Room Business Overview

An escape room provides themed puzzle-solving experiences where groups work together to find clues and solve challenges within a set time limit, typically 60 minutes. The facility creates immersive environments with various scenarios for participants to experience. These businesses transform ordinary rooms into interactive adventure spaces filled with props, hidden compartments, and electronic puzzles.

Most escape rooms operate with 2-8 players per game, though some accommodate larger groups. Staff members called game masters monitor players through cameras, providing hints when needed and ensuring safety protocols are followed. Each room requires regular maintenance, puzzle resets between groups, and occasional updates to keep the experience engaging for repeat customers.

The most common business models in this industry include:

• Fixed Location Model: A permanent facility with multiple themed rooms where groups book time slots to participate in puzzle-solving experiences
• Mobile Setup Model: Portable escape room equipment and puzzles that can be set up at different venues and events
• Franchise Model: Operating under an established escape room brand name, using their proven room designs and business systems

Related: Checklist To Start A Business

How Do Escape Rooms Make Money?

Escape rooms generate income through various entertainment options centered around puzzle-solving experiences. These businesses offer different ways for customers to participate in their themed challenges.

The revenue sources for escape room businesses can include:

• Standard Room Bookings: Groups pay a per-person rate to attempt an escape room challenge. This makes up the largest portion of revenue since it represents the core experience that brings customers to these facilities.
• Private Events: Companies, schools, and organizations reserve the entire facility or multiple rooms for team building activities or special occasions
• Birthday Packages: Custom packages that include the escape room experience plus party space rental and additional amenities
• Food and Beverage Sales: On-site sales of snacks, drinks, and sometimes alcoholic beverages to customers before or after their experience
• Merchandise: Sales of branded items like t-shirts, puzzles, and other themed products related to the escape room experiences
• Gift Cards: Advance sales of experiences through gift cards that can be redeemed later
• Photo Packages: Professional photos or videos of groups during their escape room experience

Industry Statistics

Escape rooms operate under NAICS code 713990, which covers Recreation Industries Not Elsewhere Classified. Here are some statistics about the industry:

Escape Room Industry Size & Growth: The escape room industry generated $654.5 million in revenue last year. Over the past five years, the industry experienced a decline in annual revenue of 6.1%. However, projections indicate growth in upcoming years as consumer spending on entertainment activities increases and more operators enter the market. (IBISWorld)

Number of Escape Rooms: There are 3,590 escape room businesses operating across the country. The industry remains highly fragmented, with no single company holding significant market share. Most locations are independently owned and operated, though franchise opportunities have emerged in recent years. (IBISWorld)

Escape Room Profit Margin: With average occupancy rates between 40-50%, escape room businesses typically achieve profit margins of around 10%. This percentage fluctuates based on factors such as location, room design quality, and operational efficiency.

Also See: Ideas for Naming an Escape Room

Costs To Start an Escape Room

Starting an escape room business can range from $65,000 to $300,000, depending on location size and room complexity.

Here are some of the main costs to consider when starting an escape room business:

Location Expenses: The initial costs for a commercial space include the first and last month’s rent plus a security deposit. The space will need modifications for individual rooms, a lobby area, and a control room. These renovations can range from $25,000 to $100,000 depending on the number of rooms and building condition.

Room Design and Equipment: Each themed room requires props, puzzles, lighting, sound systems, and surveillance equipment. A single room setup can cost between $15,000 to $35,000. Most escape room facilities start with 2-3 rooms.

Furniture and Fixtures: The lobby, waiting area, and administrative spaces need furnishings. This includes seating, desks, computers for booking management, and security systems. These items generally cost between $8,000 to $20,000.

Safety and Security Systems: Emergency lighting, fire suppression systems, security cameras, and monitoring equipment are necessary for customer safety and game operation. These systems can cost between $5,000 to $15,000.

These estimates provide a general idea of startup costs, but actual expenses will vary based on each business.

Resources:
Association for Room Escapes of North America
International Association of Escape Games