The Rise of Soft Play Ventures A Growing Industry Amid Challenges

The Rise of Soft Play Ventures: A Growing Industry Amid Challenges

In Forest Hill’s historic Capitol theatre, the latest addition to the soft play scene is about to take shape. Jonathan Laznik, the owner of Gambado, envisions a 10-metre-high play area, complete with four floors and a net maze. Once a silent cinema in 1929, the venue has had its fair share of incarnations—from a bingo hall to a Wetherspoon’s pub. However, the transformation will continue by introducing children’s party rooms next year, pending planning permission. Laznik is determined to breathe new life into the Grade II-listed art deco building and contribute to the growing trend of soft play ventures in the UK.

How Is the Soft Play Industry Expanding?

Laznik is not alone in seeing potential in the soft play sector. With three other locations in Brent Cross, Chelsea, and Finchley, he is among the many entrepreneurs entering the market. The soft play business has revived after the devastating impact of the pandemic, which saw 10% of operators close their doors. Today, however, the industry is showing signs of recovery. Some businesses, like Laznik’s, have even expanded to multiple sites, capitalizing on the demand for safe, fun environments for children to play.

“A boom in soft play cafes on high streets has further bolstered numbers, and 1,100 businesses are now operating soft play sites across the UK,” says Laznik. The trend is undeniable, with more than 60 million visits to soft play venues last year, a testament to the sector’s enduring appeal.

What Has Contributed to the Rise of Soft Play Cafes and Role Play Venues?

The soft play concept has a rich history, often credited to the designer Eric McMillan, whose Children’s Village in Toronto inspired many of today’s soft play locations. The UK market has adapted and grown in response to this influence, with venues falling into two categories: larger soft play centres in retail parks and out-of-town locations and smaller “soft play cafes,” often located on high streets.

These soft-play cafes have exploded in recent years, fueled partly by increased retail closures on high streets, creating more favourable rent deals. At the same time, a new breed of “role-play cafes” has emerged. These mini-towns often feature pretend supermarkets, vets, and doctors’ surgeries, offering children the chance to role-play real-life scenarios in a fun and educational way.

“The barrier for entry is much lower than it was; you don’t need to spend £500,000,” says Maria Cantarella, founder of the Association of Indoor Play (AIP), reflecting the growing accessibility of the soft play cafe model.

How Did the Covid-19 Pandemic Impact the Soft Play Sector?

Four years ago, the future of soft play businesses was uncertain, especially with the onset of the Covid pandemic. Gordon Foster, managing director of Safari Play Venues, remembers opening his second site in Peterborough just seven months before the first lockdown. “I remember Boris Johnson saying: ‘Everything can open up with restrictions apart from nightclubs, strip joints, and indoor play venues,'” he recalls. During this difficult time, Foster’s business was forced to shut down and reopen multiple times, taking on significant debt to survive.

“Covid wiped off 10% to 15% of operators—boom, just killed them,” says Cantarella, adding that many businesses didn’t make it through the pandemic. But despite the severe setback, the demand for soft play venues has only grown.

How Is the Soft Play Market Recovering and Thriving?

As the market recovers, companies like Everyone Active, which runs 235 leisure facilities nationwide, are seeing a resurgence in demand. The company reports that visitors to its facilities have increased by 20% year-on-year, prompting them to convert some of their sports halls into soft play areas to boost footfall.

Others, like Family Adventures Group, a Somerset-based soft play and nursery provider, have secured significant investment to expand their footprint. In March, the company received £5 million from private equity group Foresight to open new locations in the West Country and the Midlands.

Shaun Wilson, director of House of Play, one of the UK’s largest soft play equipment manufacturers, notes that sales leads have surged by 19% over the past 12 months. “We are seeing an unprecedented growth of operators looking to scale to multisite,” Wilson says, confirming that the soft play market is evolving rapidly.

What Is the Secret to Success for Small Soft Play Ventures?

The smaller soft-play cafes are the clear winners in a changing market. Sunny and Rem Bains, a former lawyer and investment banker, respectively, opened Crumb and Play, a cafe in Lichfield, in October 2023. Initially considering a much larger space, the couple opted for a more modest location. “To buy that would have cost £250,000, there would have been higher rates and 15 staff,” says Sunny. “It’s quite daunting for someone starting.”

Despite the challenges, their venture has exceeded sales expectations. The business has been especially popular with working parents, who bring their children and their laptops, finding a balance between work and childcare in a cosy, child-friendly environment. “With the price of childcare as high as it is, we see a lot of parents bringing their little ones and their laptops,” says Rem.

What Challenges Are Soft Play Providers Facing in the Current Climate?

However, despite the growth in soft play cafes, there are looming challenges for businesses in the sector. One of the most pressing concerns is the increase in the minimum wage and employer national insurance contributions set to take effect in April 2025. This change will significantly impact the wage bills of many businesses, especially those employing younger, casual staff.

Foster, whose business employs 120 people, expects profits to drop by 35% due to these changes. “It’s going to be a tough time for many businesses in the sector,” he says, adding that plans to invest in new ovens, furniture, and locations have been shelved.

Smaller operators feel that thespressuremb Kitchen, which employs just six staff, will face similar challenges when the new wage laws are enacted. Additionally, increased competition has started to surface, with another soft play venue opening just a mile from Crumb and Play. Although Sunny and Rem don’t feel immediate pressure due to their unique offering, they know the growing competition. “People could be setting up with similar businesses, which could make it harder for everybody if they’re too close,” says Sunny.

What Does the Future Hold for the Soft Play Industry?

While the soft play industry faces obstacles, the overall outlook remains positive. With demand for these spaces growing, the market is poised for further expansion. However, as businesses navigate rising costs, competition, and uncertain economic conditions, the sector’s future will depend on their ability to adapt and innovate.

For now, the soft play boom shows no signs of slowing down, with new ventures continuing to open across the UK. As Laznik and others expand their businesses, the next chapter for the soft play industry will be written by entrepreneurs who have survived the most challenging times and are leading the way into a bright future.

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