Chuck E. Cheese's
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Chuck E. Cheese's
Chuck E. Cheese
Formerly
Chuck E. Cheese's Pizza Time Theatre
Chuck E. Cheese's Pizza
Chuck E. Cheese's
Subsidiary of CEC Entertainment, Inc.
IndustryFamily entertainment centers, fast food
FoundedMay 17, 1977; 42 years ago (1977-05-17)
San Jose, California, U.S.
FounderNolan Bushnell
Headquarters,
Number of locations
608 (2017)
Area served
North America, South America, Middle East
Key people
Gene Landrum (first president and COO)
ProductsPizza, arcade games, kiddie rides, birthday parties
OwnerApollo Global Management
ParentPizza Time Theatre, Inc. (1977–1984)
ShowBiz Pizza Time, Inc. (1984–1998)
CEC Entertainment, Inc. (1998–present)
Websitewww.chuckecheese.com

Chuck E. Cheese (formerly known as Chuck E. Cheese's Pizza Time Theatre, Chuck E. Cheese's Pizza, and Chuck E. Cheese's) is a chain of American family entertainment centers and restaurants. The chain is the primary brand of CEC Entertainment, Inc. and is headquartered in Irving, Texas.[1][2] The establishment serves pizza and other menu items, complemented by arcade games, amusement rides, and animatronic displays as a focus of family entertainment.[3] The brand derives its name from its main animatronic character and mascot Chuck E. Cheese, a comedic rat who sings and interacts with guests.[4][5][6][7][3][8]

The first location opened in San Jose, California, as Chuck E. Cheese's Pizza Time Theatre, on May 17, 1977.[9][10][11][12] The concept was created by Atari co-founder Nolan Bushnell, credited with bringing video games such as Pong to the mainstream. The Pizza Time Theatre was the first family restaurant to integrate food, animated entertainment, and an indoor arcade.[3] Following a filing for bankruptcy, the chain was acquired by competitor ShowBiz Pizza Place in 1984, forming ShowBiz Pizza Time, Inc.[13] In 1990, the company began unifying the two brands with the goal of renaming every location to Chuck E. Cheese's Pizza.[14][15] The logo was redesigned in 1994 after pizza was dropped from each store's name.[13] ShowBiz Pizza Time, Inc. became CEC Entertainment, Inc. in 1998, and over 600 Chuck E. Cheese stores are open in 47 states and 17 countries as of 2019.[13][1][2]

Chain history

Logo until 2018-2019

Foundation

Two children in the Ticket Blaster. This is used whenever a child has a birthday party. The birthday child collects as many tickets as they can before time expires.
A girl playing in the now removed SkyTubes play area.

Chuck E. Cheese's Pizza Time Theatre was founded by Atari founder Nolan Bushnell, who was seeking to expand the purview of video game arcades beyond more adult locations like pool halls to a child- and family-friendly venue.[3][16] Bushnell's experience in the amusement park industry, as well as his fondness for the Walt Disney Company, were influential in the conceptualization of the Pizza Time Theatre concept.[17] 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.[3][13] In 1978, Bushnell purchased the Pizza Time Theatre concept from Atari's then-corporate parent, Warner Communications.[18] Gene Landrum then resigned from Atari and was made President and Chief Operating Officer of Chuck E. Cheese's Pizza Time Theatre.[19][20]

Bushnell has said of his decision to open a pizza restaurant, "It was my pet project ... I chose pizza because of the wait time and the build schedule: very few components and not too many ways to screw it up."[21] After finding out from employees working on the animatronics that the costume he bought was a rodent rather than the coyote he thought he was buying, Bushnell says he suggested changing the name of the establishment from the planned "Coyote Pizza" to "Rick Rat's Pizza". Marketing people disliked that and proposed "Chuck E. Cheese" instead, which is what was used.[22]

To expand beyond California and the west coast, Nolan began to franchise, resulting in a co-development agreement between himself 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,[18] while also forming a company subdivision, "Pizza Show Biz", to develop the Pizza Time Theatres.[18]

ShowBiz Pizza Place

In November 1979, 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.[18] In December 1979, Brock and Fechter formed "Showbiz Pizza Place Inc", severing Brock's business relationship with Bushnell.[18][23]ShowBiz Pizza Place was conceptually identical to Pizza Time Theatre in all aspects except for animation, which would be provided by Creative Engineering.[18] Showbiz Pizza Place opened its first location on March 3, 1980, in Kansas City, Missouri.[13]

Upon the opening of ShowBiz Pizza Place, Bushnell sued Brock and Topeka Inn Management over breach of contract.[18] Brock immediately issued a counter-suit against Bushnell, citing misrepresentation.[18] 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.[18] During this period, Topeka Inn Management also changed its name to Brock Hotel Corporation and moved its headquarters to Irving, Texas.[18] Both restaurants experienced increased success as the video game industry became more robust,[18] and, to maintain competition, both franchises continually modified and diversified their animatronic shows.

Mergers and restructuring

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

In 1981, Pizza Time Theatre went public; however, the evolving video game industry and the video game crash of 1983 resulted in significant losses for Pizza Time Theatre, which lost $15 million in 1983, and by 1984, Bushnell's debts were insurmountable, resulting in the filing of Chapter 11 bankruptcy for Pizza Time Theatre Inc.[13] Showbiz then bought the foundering company, recreating itself as Showbiz Pizza Time Inc.[13]

After the merger, both restaurant chains continued operating under their respective titles, while major financial restructuring had begun.[13] During this period, Creative Engineering began to sever ties with ShowBiz Pizza Time (officially splitting in September 1990), resulting in the unification of the two brands. By 1992, all restaurants assumed the name of Chuck E. Cheese's Pizza.[14] The name was then shortened to Chuck E. Cheese's by March 1995 after a redesigned concept.[13][24] In 1998, Showbiz Pizza Time renamed itself CEC Entertainment, Inc. to reflect the remaining chain brand.[2][13]

International expansion

In the early 1980s, the restaurant franchise debuted in Australia under the name Charlie Cheese's Pizza Playhouse. The name change had to do with the common meaning of the word "chuck", which in Australia is a reference to the phrase "to throw up".[25] Pizza Time Theatre, Inc. also opened at least one restaurant in Hong Kong, which closed shortly thereafter as a result of the initial company's 1984 bankruptcy.[25]

A franchise store was opened in a suburb of Paris, France at the time Pizza Time Theatre, Inc. filed for bankruptcy.


International markets:


The company was supposed to open a branch in the Philippines at Glorietta but it was scrapped due to the discrepancies in the mall's design which standards of CEC locations must be followed. The location of the first branch is still being proposed.[27]


Planned markets:

Buyout and modern redesign

In February 2014, Apollo Global Management acquired CEC Entertainment, Inc. for $54 per share, or about $950 million.[28][29]

In October 2014, under Apollo Global Management, CEC Entertainment announced that they would purchase their Phoenix-based competitor, Peter Piper Pizza from ACON Investments.[30]

In August 2017, the company began to pilot a new design concept at seven remodeled locations (three in Kansas City, three in San Antonio, one in Selma, Texas), branded as Chuck E. Cheese Pizzeria & Games. These locations feature more upscale decor with a "muted" interior color scheme, an open kitchen, the "Play Pass" card system to replace arcade tokens, and the animatronic stage show replaced by a dance floor area. These changes, along with expansions to food offerings, are intended to help the chain provide an experience that can appeal better to adult visitors, and encourage family dining as opposed to primarily parties.[31][32]

In 2019, the corporation announced it would go public on the New York Stock Exchange through a shell company, Leo Holdings Corporation, in which Apollo will still own 51% of.[33]Bloomberg also reported that after going public, Chuck E. Cheese would no longer have animatronic animals as part of the entertainment.[34] The proposed merger between CEC Entertainment and LEO Holdings Corporation has been terminated as of July 29, 2019.

Menu items

While its primary focus is pizza, Chuck E. Cheese also offers cold-cut sandwiches, chicken wings, salad bars, appetizers, platters, and desserts. Some stores are also used as test locations which feature new Chuck E. Cheese foods.[35] Certain Chuck E. Cheese locations also offer beer and wine.[36]

Starting on November 13, 2012, new gluten-free menu items were available at more than 500 locations in the U.S. and Canada. This currently includes a choice of a personal-size cheese pizza and new items such as chocolate or vanilla sheet cakes and cotton candy.[37]

Entertainment

Arcade and currency

A 2001 Chuck E. Cheese token.

From the time of the company's inception to today, one of the main draws for the stores has been the arcade.[3][2] The arcade games primarily consist of either redemption games or video arcade games.[38]

The brass tokens issued by the company for use in their arcades exist in numerous varieties, and are collected by exonumia enthusiasts.[39] The company once tested a card access method for use with their arcade and skill games in one location. The test location would no longer use tokens, and instead use a refillable card to access credits, which replace tokens, and points, which replace tickets. However, this was later scrapped. It was tested under different names, including "Chuck E.'s Super Discount Card" and "Chuck E. Token Card".[40][41] This method is currently being tested in some markets again. Instead of electronic tickets like the former cards, patrons still carry paper tickets, and the card just takes the place of the metal tokens. CECE, or CEC Entertainment, has called the new system "Play Pass".

Animatronic figures

Chuck E. Cheese animatronic, with "Pizza Time" clock, in 2017.

Along with the arcade, the other main draw for the centers 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 location opened, whether it was renovated, and other factors.[42]

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, the Warblettes, and the main focus of the show, Chuck E. Cheese.[43] Later, restaurants also added "Cabaret" shows in separate rooms of each restaurant.[3] They also frequently changed out the sole female character, currently 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. The in-house control system which consisted of a 6502-based controller in a card cage with various driver boards was called "Cyberamics".[44][45]

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 created by Garner Holt alongside large television monitors, lighting effects, and interactive elements.[46] The other characters appear as puppets on the TV screens. The control system dubbed "Cyberstar" was re-designed from the ground up and produced by Dave Philipsen. In some markets, the company has also tried a new store concept that omits the animated show entirely. This is the Circle of Lights stage which either consists of a live Chuck E. Cheese costume character or an animatronic in a futuristic light stage with large television monitors. In 2017, the chain announced that animatronic shows would be removed in favor of a modernized dance floor.[47] The move is being piloted in a handful of locations prior to being implemented company-wide.[47]

The members that performed in the animatronic shows were:[48]

Chuck E. Cheese walkaround character performing in 2017.

Costumed shows

Two types of costumed shows are used by Chuck E. Cheese: 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. In the live show a customized rendition of "Happy Birthday" is 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.[49] 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 or by Chuck E. Cheese himself. The children must dance in order to win free tickets. The free tickets are thrown at the end of the performance for all the children that participated. Chuck comes out every hour on the half hour. The songs that he and the children dance to are usually well-known classic songs such as "If You're Happy and You Know It" and "Head, Shoulders, Knees, and Toes".

References

  1. ^ a b "CEC Entertainment, Inc. Reports Financial Results for the 2017 First Quarter" (Press release). PR Newswire. 2017-05-08. Retrieved .
  2. ^ a b c d "Investor Relations" (PHP). Chuck E. Cheese official site. CEC Entertainment, Inc. Retrieved .
  3. ^ a b c d e f g Packer, Linda (October 1979). "Catering To Kids" (PDF). Food Service Marketing. pp. 46-47.
  4. ^ Mace, Scott (December 21, 1981). "Rat dishes up pizza, computerized entertainment". Infoworld. p. 8.
  5. ^ Sheff, David (1999). Game Over: How Nintendo Conquered the World. GamePress. p. 115. ISBN 9780966961706. Above the receptionist's desk was the smiling face of Chuck E. Cheese, the company's mascot--a rat.
  6. ^ Taub, Stephen (November 30, 1983). "A Noisy Decline". Financial World. Vol. 152. pp. 40-43. The star of the show is a feisty-looking rat named Chuck E. Cheese, who Bushnell hopes will become as big a celebrity as Mickey Mouse.
  7. ^ Kent, Steven L. (2000). The First Quarter: A 25-Year History of Video Games. BWD Press. p. 97. ISBN 9780970475503. Bushnell called his new venture Pizza Time Theaters. He named his restaurants Chuck E. Cheese after the robotic rat mascot.
  8. ^ "Entertainment". Chuck E. Cheese official site. CEC Entertainment, Inc. Archived from the original (PHP) on 2009-07-01. Retrieved .
  9. ^ "1977 Pizza Time Theatre Grand Opening Ad - Original Winchester Location" (PDF).
  10. ^ "Chuck E. Cheese's 'founder' speaks to mom in campaign from Dallas' Richards Group". The Dallas Morning News. 2012-08-16. Archived from the original on 2012-08-24. Retrieved .
  11. ^ "Chuck E. Cheese fined for violating child-labor laws". San Jose Mercury News. 2011-12-13. Retrieved .
  12. ^ "Chuck E. Cheese's® Kicks off '40 Years of Fun' Celebration". PR Newswire. 2017-01-17. Retrieved .
  13. ^ a b c d e f g h i j "Company History". Chuck E. Cheese Official Site. CEC Entertainment, Inc. Archived from the original (PHP) on January 6, 2012. Retrieved .
  14. ^ a b Prewitt, Milford (1990-09-10). "ShowBiz Parent Merges Concepts Into One Big Pie" (PDF). Nation's Restaurant News. pp. 12-3.
  15. ^ "www.showbizpizza.com/info/articles/joint/joint_cuarticle.pdf" (PDF). ShowbizPizza.com. 1990-09-10. Retrieved .
  16. ^ Kent, Steve L. The Ultimate History of Video Games: From Pong to Pokémon and Beyond: The Story behind the Craze That Touched Our Lives and Changed the World. Roseville, CA: Prima Pub., 2001.
  17. ^ "Pizza Time's Vaudeville Theatre" (PDF). Western Foodservice. March 1979.
  18. ^ a b c d e f g h i j k Kinkead, Gwen (July 1982). "High Profits from a Weird Pizza Combination" (PDF). Fortune. pp. 62-68.
  19. ^ Atari Inc: Business is Fun; Marty Goldberg, Curt Vendel; Syzygy Press, 2012; pp. 325-334
  20. ^ Ponder, Erica. "Building a Strong Business Network with Dr. Gene Landrum". Houston Style Magazine. Retrieved 2016.
  21. ^ Madrigal, Alexis C. (July 17, 2013). "Chuck E. Cheese's, Silicon Valley Startup: The Origins of the Best Pizza Chain Ever". The Atlantic. Retrieved 2017.
  22. ^ "How I Built This / Atari & Chuck E. Cheese's: Nolan Bushnell".
  23. ^ "Rock-afire Explosion Brochure" (PDF) (Press release). Creative Engineering, Inc. 1980. Retrieved .
  24. ^ "1994 FORM 10-K". U.S. Securities and Exchange Commission. 2009. Retrieved .
  25. ^ a b VegaNova. "Chuck E. Cheese's Collectables". showbizpizza.com. Retrieved .
  26. ^ "Chuck E. Cheese's Locations Near You". Chuck E. Cheese. Retrieved 2016.
  27. ^ "What happened to PH opening of Chuck E. Cheese?". ABS-CBN News. Retrieved 2017.
  28. ^ Chuck E. Cheese Owner Agrees to $950M Buyout; ABC News; January 16, 2014
  29. ^ Apollo Global Management Announces Completion of Its Acquisition of CEC Entertainment, Inc.; BusinessWire - Press release; February 14, 2014
  30. ^ Chuck E. Cheese's Announces Acquisition of Peter Piper Pizza; Acon Investments; October 16, 2014
  31. ^ Channick, Robert. "Chuck E. Cheese's breaking up the (animatronic) band". chicagotribune.com. Retrieved .
  32. ^ Whitten, Sarah (2017-08-09). "Chuck E. Cheese's is getting a major redesign". CNBC. Retrieved .
  33. ^ Ruggless, Ron (April 8, 2019). "Chuck E. Cheese's plans merger, public trading". Nation's Restaurant News. Retrieved 2019.
  34. ^ https://www.bloomberg.com/news/articles/2019-04-08/animatronic-animals-won-t-be-part-of-the-public-chuck-e-cheese?srnd=premium
  35. ^ "Nutritional Information" (PDF). Chuck E. Cheese Official Site. CEC Entertainment, Inc. January 2009. Retrieved .
  36. ^ 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 .
  37. ^ "New Gluten-Free Offerings - Chuck E. Cheese's". Chuck E. Cheese.
  38. ^ "Games & Rides" (PHP). Chuck E. Cheese Official Site. CEC Entertainment, Inc. Retrieved .
  39. ^ "Chuck E. Cheese Tokens". Forrest's Token Page. Retrieved .
  40. ^ S., Travis. "CEC Token Cards" (CSS). Showbiz Pizza.com. Retrieved .
  41. ^ S., Travis. "Super Discount Card Poster 9Irving, TX 2006)" (JPG). Showbiz Pizza.com. Retrieved .
  42. ^ S., Travis. "Pizza Time Theatre: Stage Shows" (CSS). Showbiz Pizza.com. Retrieved .
  43. ^ "Pizza Time Theatre Program" (PDF). Atari. 1977. Retrieved .
  44. ^ "Pizza Time Theatre Balcony Show Photograph #1". 1981. Retrieved .
  45. ^ "Pizza Time Theatre Balcony Show Photograph #2". 1980s. Retrieved .
  46. ^ "Chuck E.'s New Look" (PDF) (Press release). Garner Holt Productions. 1998. Retrieved .
  47. ^ a b Brown, Jennings (17 August 2017). "Chuck E. Cheese's Animatronic Band Is Starting to Break Up and Fans Are Heartbroken". GizModo. GizModo. Retrieved 2017.
  48. ^ "Our Promise to Parents". Chuck E. Cheese. Archived from the original on 2008-08-31. Retrieved .
  49. ^ "Birthday Parties". Chuck E. Cheese Official Site. CEC Entertainment, Inc. Archived from the original (PHP) on 2009-02-28. Retrieved .

External links


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