Businessweek

CEC Entertainment, Inc. develops, operates, and franchises family dining and entertainment centers (also referred to as ‘stores’) under the name ‘Chuck E. Cheese’s’ in 47 states and 8 foreign countries and territories. As of December 30, 2012, the company and its franchisees operated a total of 565 stores, of which 514 were company-owned stores located in 44 states and Canada. Its franchisees operated a total of 51 stores located in 15 states and 7 foreign countries and territories, including Chile, Guam, Guatemala, Mexico, Puerto Rico, Saudi Arabia, and the United Arab Emirates. Chuck E. Cheese’s stores offer wholesome family dining, musical and comic entertainment by computer-controlled robotic characters, family-oriented arcade-style and skill-oriented games, video games, rides, and other activities, all of which are intended to appeal to the company’s primary customer base of families with children between 2 and 12 years of age. All of the company’s stores offer dining selections consisting of various pizzas, sandwiches, wings, appetizers, a salad bar, beverages, and desserts, as well as certain gluten-free options. Soft drinks, coffee, and tea are also served, along with beer and wine. Strategic Plan The company’s strategic plan is focused on implementing its marketing plan and value proposition, continuing to reinvest in its existing store base, delivering on its operational plan, continuing its new company store development in the United States, and developing franchises internationally. Intellectual Property The company owns various trademarks, including Chuck E. Cheese’s and the Chuck E. Cheese character image used in connection with its business, which have been registered with the appropriate patent and trademark offices. Seasonality The company generates higher sales volumes during the first and third quarters of each fiscal year (year ending December 2012) due to the timing of school vacations, holidays, and changing weather conditions. History CEC Entertainment, Inc. was founded in 1980.