Business Update


UK and Irish escape room count over the past five years
produced by Ken Ferguson of Exit Games UK

The graph above reflects part of the state of the escape room industry. We are lucky to have Ken Ferguson keeping record so meticulously, and the graph comes from a recent statistical update he wrote; he is the Google to my Yahoo!, which is why my coverage has pivoted away from escape rooms to such a large extent. The trampoline park industry appears to have grown in the UK at a comparable rate to that of the escape game industry, probably even a quicker rate still, according to very limited data quoted within this Guardian article; it would really be useful to see more granular data on the trampoline parks for a fuller comparison. (Certainly the escape game industry has done relatively well at keeping itself out of trouble in terms of adverse news stories, which the trampoline park industry hasn’t.)

Nevertheless, past performance is no guarantee of future results, as the stock market disclaimer goes. Within the last month or two, I’ve seen two very respectable, puzzly people say “Are escape rooms still a thing?” and “I kinda feel like I’m over escape rooms now? Am I just getting old?”; no names, no pack drill, no trace on Google. On the other hand, someone else made unprompted negative comments about the ubiquity of the escape room genre in public as far back as GameCamp 2016, now almost 15 months ago. As I said at the time, “one of the ways you know your genre has made it is when there’s a backlash against it“. If you’re serious about starting your own room, don’t let me put you off; keep doing your research, and you might well get a lot from this seminar on the topic – though a lot of the legal specifics are from the US rather than from the UK.

I firmly believe that (a) escape room games have an awful lot to offer that other genres don’t, (b) we’re still only really scratching at the surface of what the wider escape room game industry has to offer and (c) I don’t think you’d find many people willing to argue that the overall quality of new games hasn’t gone up over time. I also firmly believe that the wider escape room game industry doesn’t have a right to exist and keep growing, and will need to keep innovating and reinventing itself over time, sometimes in large ways and sometimes in small ones, in order to remain in good health. So far, so very very good; I’ve privately called the top of the market in the UK at least three or four times – and so far, quite happily, I’ve been wrong each time. Ken reports that the number of closures so far this year has been remarkably low; it may be harder to track closures than openings, for things can just fade away, but this is another indication still of good health.

Ever since Escape Hunt was bought and floated on the Alternative Investment Market, because they have become a public limited company, much more of their business has to be conducted in public. The shares are neatly up from the price at which they were placed, which is excellent news; the price doesn’t seem to move too much and the market for them might not be all that liquid. The company’s web site’s investors section will be worth following over time. The statement at the recent AGM is interesting – “The key metric by which we judge our franchisee business is the share of revenue which we receive from our franchisees” – and the annual accounts will always be of interest. You can always follow the details of any UK company that’s a plc or a ltd. at Companies House, whether it’s an escape game company or not; for instance, Escape Hunt plc, Tick Tock Unlock Ltd., Clue HQ Ltd. and so on, and so on. (Many small escape game companies are operated by sole traders and thus cannot be found in this way.)

Lastly, purely for completeness, if you can buy shares in any publicly traded company and build up a long position in it in the hope that the price will rise, you can quite probably find a broker who will help you build up a short position in the hope that the price will fall as well. If you are sophisticated enough to know what you’re doing and were of a mind to do so, neither of which is true in my case, the likes of SpreadEx might be able to set you up with just such a contract…

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