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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Escape Room Business Profitable?

The profitability of your Escape Room business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Escape Room business. 

Escape Room Industry Prospects

According to the search results, the global escape room market size is projected to reach USD 31 billion by 2032  (alliedmarketresearch), growing at a compound annual growth rate (CAGR) of 14.8% from 2023 to 2032. Another source estimates the global escape room market size to reach USD 32.01 billion by 2032, growing at a CAGR of 15% from 2023 to 2032. Additionally, the global escape room market is expected to record a CAGR of 15% from 2023 to 2032, with the market size projected to reach USD 8.1 billion in 2022 (custommarketinsights). While there may be slight variations in the estimates, the data indicates significant market value and anticipated growth for the global escape room business in 2023. The US escape room market size in 2023 was approximately $662.4 million (360researchreports). The market is expected to grow considerably during the forecast period, with North America, especially the United States, continuing to play an important role in the global market . 


  • Leasehold Improvements: Costs associated with modifying or renovating a leased space to suit your escape room themes, including construction of walls, doors and specialized rooms or areas within your space.
  • Themed Decor and Set Design: Investment in high-quality, theme-specific decor, props and set pieces to create immersive environments for each escape room scenario.
  • Puzzle Design and Props: Costs related to designing and acquiring the puzzles, mechanisms and interactive props that participants will engage with during their escape room experience.
  • Technology and Special Effects: Investment in advanced technology, software and special effects equipment, including sound systems, lighting, projectors, computers and sensors, to enhance the immersive experience.
  • Security Systems: Costs for installing security cameras, emergency lighting and alarm systems to ensure the safety of participants and staff.
  • Furniture and Fixtures: Purchases of furniture and fixtures for customer service areas, waiting rooms and office spaces.
  • Point of Sale (POS) System and Website: Investment in a POS system for ticket sales, merchandise and refreshments, if offered. Also, costs associated with developing a professional website for bookings, marketing and customer engagement.
  • Signage: Exterior and interior signage costs, including themed signage for each escape room and directional signage for safety and navigation within your facility.
  • Initial Inventory: If you plan to sell merchandise or refreshments, the cost of purchasing initial inventory.
  • Office Equipment and Supplies: Investment in office equipment (computers, printers) and supplies needed for the day-to-day administration of the business.
  • Audio/Visual Equipment: Purchase of A/V equipment for background music, effects and monitoring rooms during gameplay.
  • Insurance Premiums: Initial premiums for necessary insurance coverage, such as liability insurance, property insurance and business interruption insurance. While insurance is typically considered an operational expense, the initial setup for comprehensive coverage can be substantial.
  • Professional Fees: Costs for legal, accounting and consulting services related to the start-up phase, including business formation, lease negotiation and intellectual property protection.
  • Marketing and Promotional Materials: Initial investment in marketing materials, including brochures, posters and launch advertising campaigns, to generate interest and attract customers to your new business.
  • Training and Development: Costs associated with training your staff to operate the escape rooms efficiently, provide excellent customer service and handle emergency situations.

Careful planning and budgeting of these CapEx items are crucial for the successful launch of your escape room business. Additionally, considering the competitive nature of the entertainment industry, it’s important to allocate sufficient resources to create unique and memorable experiences that will attract and retain customers.


  • Ticket Sales for Escape Room Experiences: This is the primary source of revenue. Customers pay a fee to participate in the escape room experience. Pricing can be per person or per group and may vary based on the day of the week, time of day, or the complexity and popularity of the room.
  • Private Events and Parties: Hosting private events, such as birthday parties, corporate team-building events, bachelor/bachelorette parties and other special occasions. These events often command a premium price and may include additional services.
  • Merchandise Sales: Selling branded merchandise related to the escape room themes, such as T-shirts, mugs, puzzles and other memorabilia. This not only generates additional revenue but also helps in marketing your brand.
  • Food and Beverage Sales: If your facility includes a lounge or waiting area, offering refreshments, snacks, or even partnering with local food vendors can provide an additional revenue stream. Ensure compliance with local health and licensing regulations.
  • Photography and Souvenirs: Offering to take photos before or after the escape room experience and selling them as souvenirs, either digitally or printed. This can also include themed photo opportunities within your facility.
  • Seasonal or Themed Events: Creating special rooms or events for holidays, local festivals, or popular cultural events can attract repeat customers and generate buzz around your business.
  • Membership or Loyalty Programs: Offering memberships or loyalty programs where customers pay upfront for a certain number of experiences over time or receive discounts on future visits for a recurring membership fee.
  • Online Puzzle Games or Virtual Escape Rooms: Expanding your offerings to include online puzzles or virtual escape room experiences can attract a wider audience, including those who are unable to visit your physical location.
  • Gift Cards and Vouchers: Selling gift cards or vouchers for escape room experiences makes an excellent gift option and can attract new customers to your business.
  • Workshops and Team-Building Seminars: Offering workshops on puzzle-solving, critical thinking, or team-building as an extension of your escape room experiences. These can be marketed towards corporate groups or educational institutions.
  • Cross-Promotions and Partnerships: Partnering with local businesses, hotels, or tourist attractions to offer combined packages or discounts can help increase visibility and attract tourists and locals alike.

By leveraging these diverse revenue streams, you can maximize the profitability of your escape room business. It’s important to continuously innovate and update your offerings to keep your customers engaged and encourage repeat visits.

Cost of Services Sold

  • Consumables and Room Reset Costs: This includes any items used during the game that need to be replaced for each group, such as locks, keys, puzzles and props that wear out or can only be used once. Additionally, any materials used to reset the rooms between groups fall into this category.
  • Utility Costs Directly Tied to Game Play: Additional electricity for special lighting, computers, audio/visual equipment and other electronics used in the escape rooms. While basic utility costs are considered operating expenses, the incremental increase due to game operation is a cost of service.
  • Employee Wages for Game Masters: Salaries or wages for staff who operate the escape rooms, including game masters who monitor the games, provide clues and reset the rooms between groups. While fixed staff costs are OpEx, any overtime or additional staffing needed to accommodate higher volumes of games would be considered CoS.
  • Maintenance and Repair of Props and Technology: Regular maintenance and occasional repair of high-tech props, electronics and puzzles used in the escape rooms. This also includes software updates for any technology-driven puzzles or experiences.
  • Cleaning Supplies and Services: Additional cleaning supplies and possibly external cleaning services needed to maintain the escape rooms between groups, especially to meet higher standards of cleanliness and sanitation.
  • Wear and Tear: This encompasses the costs associated with the depreciation of props and room elements due to use, which is not the same as the depreciation calculated for accounting purposes but rather an operational consideration for when items need to be replaced more frequently due to customer interaction.
  • Licensing Fees for Themes or Music: If you use licensed themes, characters, or music in your escape rooms, any royalty fees or licensing costs that vary based on the number of games run or tickets sold would be included in CoS.
  • Cost of Goods Sold (COGS) for Merchandise: If you sell merchandise that is directly tied to the escape room experiences, the cost of purchasing this merchandise for resale to your customers is considered a cost of service, even though it’s also tied to a revenue source.
  • Commission Fees: If you use third-party booking platforms that charge a commission per booking, these fees are a direct cost of selling your service.

By carefully managing these variable costs, you can maintain a healthy margin between the revenue generated by your escape room experiences and the costs associated with delivering those experiences. It’s important to regularly review these costs and look for efficiencies, especially as your volume of customers increases.

Operating Expenses

  • Rent or Lease Payments: The monthly or annual cost of leasing the space for your escape room business. This is a fixed cost and one of the most significant operating expenses for most physical businesses.
  • Utilities: Regular expenses for electricity, water, gas and internet services that are necessary to maintain the operational facility, excluding the additional utility costs directly associated with running the escape rooms (which are considered cost of services).
  • Insurance: Premiums for different types of insurance policies, including liability insurance (to protect against claims from injuries or accidents), property insurance (for damage to the business premises and equipment) and business interruption insurance.
  • Marketing and Advertising: Costs associated with promoting your escape room business, including online advertising (Google Ads, social media ads), print media, promotional materials, website maintenance and other marketing campaigns to attract customers.
  • Salaries and Wages: Payments to employees who work in administrative, marketing, or maintenance roles within the business. This includes payroll taxes and any benefits you offer.
  • Professional Services: Fees for services provided by accountants, lawyers, consultants and other professionals who assist with the legal, financial and operational aspects of running your business.
  • Software Subscriptions: Ongoing costs for software used in managing the business, such as booking systems, customer relationship management (CRM) software, payroll software and any other tools needed for business operations.
  • Office Supplies and Equipment: Expenses for office supplies (paper, pens, printer ink) and equipment (computers, printers, phones) necessary for the administration of your business.
  • Repairs and Maintenance: Regular maintenance and any necessary repairs of the business premises and non-game-specific equipment not included in the cost of services.
  • Taxes: Various taxes that the business is required to pay, including property taxes (if owned), sales taxes and business taxes, excluding taxes directly tied to revenue generation.
  • Training and Development: Costs associated with training staff who are not directly involved in game facilitation, such as administrative staff, marketing teams and maintenance crews.
  • Travel and Entertainment: Expenses related to business travel, customer entertainment, or attendance at conferences and industry events, aimed at business development or operational improvement.
  • Depreciation: Non-cash expense that represents the gradual loss of value of the business’s fixed assets over time, including furniture, fixtures and equipment used in the operation of the business (but not directly in providing escape room experiences).
  • Loan Interest: Interest payments on any loans taken out to start or expand the business, excluding the repayment of the principal amount.

Efficiently managing operating expenses is crucial for maintaining the profitability of your escape room business. It involves regularly reviewing and adjusting where possible to ensure that expenses are aligned with business goals and financial performance.

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