LABOR SHORTAGES

Labor Shortages & Wage Inflation: The Operational Reality FECs Can’t Ignore in 2025

If there’s one issue every FEC operator is feeling, from arcades to trampoline parks to bowling entertainment centers, it’s labor. The combination of higher wages, tighter hiring pools, and higher expectations from guests has created one of the most difficult staffing environments the industry has ever seen.

Why Labor Is So Hard Right Now

1. Minimum wage increases in many states-Many regions jumped $1–$2 in hourly wages in 2024–2025, raising the floor for entry-level positions.

2. Fewer people want “on-site” jobs-The modern workforce prefers flexible, remote-friendly work. FEC jobs require physical presence, irregular hours, and weekend shifts, making hiring tougher.

3. More competition for the same workers-Restaurants, retail, and hospitality are also short-staffed, creating a bidding war for reliable employees.

The Financial Impact on FECs

Where labor used to sit around 16%–18% of total expenses, many FECs now see 22%–26%.

Higher wages hit:

• Front desk & kiosk hosts

• Redemption staff

• Party hosts

• Food & beverage crews

• Cleaning & floor attendants

• Game techs (the hardest role to fill)

This isn’t just payroll, it affects service, guest satisfaction, throughput, and ultimately revenue.

Operational Pressure Points

Labor shortages cascade into bigger problems:

• Longer lines at kiosks, food counters, and redemption

• Fewer games attended = more downtime, lower earnings

• Slow party execution = lower reviews, fewer rebookings

• Reduced cleanliness = lower NPS and Google ratings

• Less supervision = more guest issues and safety concerns

A short-staffed FEC earns less — even when foot traffic is strong.

How Smart Operators Are Adapting

Operators can’t “hire their way out” anymore, so they’re optimizing:

Cross-training staff

• One employee can rotate: kiosk → redemption → floor attendant → party support.

Offering micro-shifts

• 4-hour or split shifts make evening/weekend roles easier to fill.

Raising party host pay

• A top-quality party host pays for themselves with upsells and positive reviews.

Investing in low-labor attractions

• Self-service games, cranes, VR pods without attendants, automated kiosks.

Retention bonuses & referral programs

• Cheaper to keep good people than constantly hire new ones.

Better scheduling tools

• AI-driven or rules-based scheduling keeps labor tight without hurting service.

Bottom Line

The labor environment isn’t returning to “normal". Wages will continue rising, the hiring pool will stay tight, and FECs must adapt their operating model.

FECs that nail staffing strategy (cross-training, flexible scheduling, better pay for high-impact roles, and selective automation) will protect their margins and deliver a better guest experience.

Those who don’t will feel it in:

• slower service

• lower guest satisfaction

• rising payroll

• and ultimately, weaker revenue