Now Trending by Howard McAuliffe – June 2026

Replay Magazine·article·analyzed·Jun 1, 2026

Analysis

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TL;DR

FEC operators must embrace the Rule of Thirds and efficiency focus to survive 2026 economic uncertainty.

Summary

Howard McAuliffe of Pinnacle Entertainment Group argues that Bowl Expo 2026 is a critical inflection point for family entertainment centers facing economic headwinds. He advocates for the "Rule of Thirds" revenue model (bowling/F&B/arcade split) as essential hedging against consumer spending pressure, and emphasizes that operators must focus on operational efficiency, value delivery, and redemption management rather than major capital expansion.

Key Claims

The Rule of Thirds (one-third each from bowling, F&B, and arcade/amusement) is no longer optional for centers seeking financial resilience.
high confidence · Howard McAuliffe, Pinnacle Entertainment Group CEO, stated this as foundational operating principle for Bowl Expo 2026 article
Redemption and crane operations drive 85% of arcade sales in bowling centers, yet most proprietors don't actively manage this area.
high confidence · Howard McAuliffe cited this based on consulting experience with FEC clients
Economic pressure is making modernization of existing bowling centers more urgent, particularly for owners planning intergenerational transfer.
high confidence · Howard McAuliffe discussing 2026 trends and motivation for modernization decisions
Gas prices, grocery inflation, and consumer confidence volatility are squeezing discretionary spending for families who previously spent $80+ per Friday night.
high confidence · Howard McAuliffe citing current macroeconomic conditions affecting FEC customer base
League bowling alone is insufficient to sustain bowling centers long-term; diversified revenue streams are necessary.
high confidence · Howard McAuliffe discussing modernization strategy for centers planning 20-30 year viability

Notable Quotes

“The centers that are going to weather this year – and the next one – are the ones built on the Rule of Thirds: roughly a third of revenue from bowling, a third from food and beverage, and a third from arcade and attractions. That balance isn't an aesthetic preference. It's a hedge.”
Howard McAuliffe — Core argument for FEC business model resilience; distinguishes operational strategy from design preference
“When the economy tightens, families don't stop going out; they get pickier about where they go. They choose the place that provides the most value and the fewest headaches.”
Howard McAuliffe — Frames consumer behavior during economic pressure; positions value and experience as competitive differentiators
“Redemption and cranes drive 85% of arcade sales, and the arcade is often the most important profit center in a bowling operation. Yet proprietors often don't actively manage it.”
Howard McAuliffe — Identifies operational inefficiency at the highest-margin business segment; suggests major improvement opportunity
“It's easy to get excited, take lots of notes and then come back home and never implement any of them. This year, more than any year I can remember, it is essential to come back with a plan.”
Howard McAuliffe — Emphasizes urgency and accountability for trade show learnings; frames 2026 as inflection point
“The place where the food is good, the games work, the staff seems happy to see them, and they walk out with a prize their kid won't shut up about for three days. That's the center that wins this year. Not the one with the most lanes.”
Howard McAuliffe — Reframes competitive strategy from facility size to customer experience and operational excellence

Entities

Howard McAuliffepersonPinnacle Entertainment GroupcompanyBowl Expo 2026eventBrunswickcompanyQubicaAMFcompanyReplay Magazineorganization

Signals

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market_signal: Macroeconomic headwinds (gas volatility, grocery inflation, weakening consumer confidence) are forcing families to scrutinize entertainment spending; FEC industry facing revenue pressure
high · McAuliffe states families are 'suddenly paying attention to every dollar' and cites unpredictable gas prices and grocery costs squeezing traditional $80/Friday night spenders
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operational_signal: Widespread operational inefficiency in arcade redemption and crane management; most proprietors lack active inventory and purchasing oversight despite 85% arcade revenue generation
high · McAuliffe cites redemption as area 'we spend the most time on with our consulting clients, because most don't actively manage it' and notes proprietors don't do physical inventories
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venue_signal: FEC modernization shifting from ground-up construction to incremental improvements of existing facilities; economic uncertainty is delaying major capital projects but motivating operational upgrades
high · McAuliffe states 'Even seasoned owners are holding off on major renovations' but modernization of existing centers remains opportunity; notes Pinnacle is 'spent a lot on initial capital improvements' and now focused on 'becoming better operators'
?
business_signal: Pinnacle Entertainment Group transitioning from new facility development to consulting and operations optimization for existing clients; shifting trade show focus to efficiency/value rather than ground-up construction
high · McAuliffe: 'In recent years, we've spent as much time improving the operations of existing clients as working on new facilities' and 'Expect less talk about building multi-million-dollar, ground-up facilities and more about how to improve existing ones'

Transcript

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Bowl Expo 2026 By Howard McAuliffe, Partner, Pinnacle Entertainment Group Every June, many of us fly to Bowl Expo, which, along with Amusement Expo and IAAPA, has become a tent- pole event in the family entertainment business. Most proprietors attend education sessions, walk the tradeshow floor looking for new ideas, and have a lot of fun at night with friends, colleagues and the industry at large. It’s easy to get excited, take lots of notes and then come back home and never implement any of them. This year, more than any year I can remember, it is essential to come back with a plan. Gas is unpredictable. Grocery prices are still squeezing the same families who used to drop $80 on a Friday night at your center without a second thought. Consumer confidence is wobbly. And every operator I talk to is asking some version of the same question: How do I protect my revenue when my customer is suddenly paying attention to every dollar? I’ve been answering that question the same way for 10 years, and the answer hasn’t changed. It’s just gotten more urgent. The Rule of Thirds Is No Longer Optional There are still bowling centers operating with 70% lane fees, 20% F&B and 10% amusement, which represents a real opportunity for our industry. The progressive operators have already converted; the tougher economy may push some of the laggards to modernize or sell to someone who will. The centers that are going to weather this year – and the next one – are the ones built on the Rule of Thirds: roughly a third of revenue from bowling, a third from food and beverage, and a third from arcade and attractions. That balance isn’t an aesthetic preference. It’s a hedge. Today, league bowlers and dedicated bowling enthusiasts are a relatively small segment of the population. Nearly everyone, however, likes a night out, so a center that offers good food, good drinks and other forms of entertainment becomes a destination for almost anyone. The guest gets more for their money in that kind of facility, and value will be essential as consumers scrutinize every dollar they spend. Bowl Expo Is About Efficiency and Value This year, we will be attending Bowl Expo for the first time as both a bowling center owner and a vendor. We’ll be looking for ways to deliver – and find for ourselves – both efficiency and value. We’ve spent a lot on initial capital improvements, and the next year is about becoming better operators. Even seasoned owners are holding off on major renovations, given the uncertain economy, and they, too, will be looking for value and efficiency. That means our time on the tradeshow floor will be spent looking for proven arcade games, attractions that really move the needle, and other ways to operate more efficiently. The education sessions we attend will focus on continuous improvement: How can we operate what we have more efficiently? As a vendor, we’ll also be offering efficiency and value. In recent years, we’ve spent as much time improving the operations of existing clients as working on new facilities. At Bowl Expo this year, we’ll be talking about pricing models, repair and maintenance programs, and how to buy games efficiently. Expect less talk about building multi-million-dollar, ground-up facilities and more about how to improve existing ones. Bowling Center Modernizations There are still opportunities to modernize existing centers. These projects come with significant costs, but they’re not nearly as expensive as ground-up construction. Proprietors who own their buildings may finally be pushed to modernize as revenues and profits decline. That’s especially true if there’s another generation set to inherit the bowling center and needs a new, modern model to survive the next 20 to 30 years. League bowling alone won’t do it. Bowl Expo is the place to start that conversation. Vendors, please be patient; these proprietors may take a year or more to complete their modernization. Proprietors typically start with their bowling equipment provider, usually Brunswick or QubicaAMF. We’ve worked with Brunswick as an alliance partner for many years and have found they do a great job guiding proprietors through modernization. While vendors are great resources, it’s also essential to talk to other owners who have already gone through the process. There will be plenty of proprietors at the show this year looking for new ideas and products for their own projects. Redemption and Cranes: A Focus Area An area of the bowling business that can almost always be run more efficiently is redemption and crane operations. There are many moving parts in redemption, and it’s one of the areas we spend the most time on with our consulting clients, because most don’t actively manage it. That’s always surprising, since redemption and cranes drive 85% of arcade sales, and the arcade is often the most important profit center in a bowling operation. Yet proprietors often don’t do physical inventories, don’t have management actively handling purchasing and reporting, or, worse, outsource everything to a supplier. At Bowl Expo, there will be “show specials” offering great savings. It’s also a great time to talk to vendors and find out what items are hot right now. Do you have NeeDoh at your redemption counter? If not, you should. It’s impossible to keep up with every trend on your own, and going to the show and talking to suppliers and other proprietors is one of the best ways to stay current. Bottom Line for 2026 When the economy tightens, families don’t stop going out; they get pickier about where they go. They choose the place that provides the most value and the fewest headaches. The place where the food is good, the games work, the staff seems happy to see them, and they walk out with a prize their kid won’t shut up about for three days. That’s the center that wins this year. Not the one with the most lanes. The one with the best experience. Bring a notebook to Nashville. Take pictures. Talk to vendors and proprietors. Ask harder questions than you did last year of your suppliers, your peers and most importantly, yourself. And come home with a plan, not just a tote bag. Howard McAuliffe loves to imagine and implement new products, business models, and ideas, and is CEO and president of Pinnacle Entertainment Group Inc. He’s an industry veteran who got his start in the business when he was just 16 and has 20 years of expertise in product development, as well as FEC and route operations. Howard’s wife Reem and young son Sami are the center of life outside of work. When he’s not working, Howard can be found enjoying the outdoors, hiking, fishing and mountaineering. Traveling anywhere new or to old favorites like the American West is a passion. Readers can visit www.grouppinnacle.com for more information or contact Howard at [email protected], he welcomes positive as well as constructive feedback and counterpoints.