Funstation: 20 years of innovation in family entertainment

Founded over two decades ago, Funstation has grown from a small family-run business to a leading player in the UK’s family entertainment industry. Under the leadership of James Miller, CEO, the company has expanded across the country, changing how families experience entertainment and pushing the boundaries of the traditional UK amusement market.

Speaking with blooloop, Miller reflects on the company’s origins, steady expansion, and bold decision to adopt cashless technology with Embed, which positioned Funstation ahead of many competitors.

A family legacy

Miller’s story begins with a deep-rooted connection to the entertainment business. “I was born into the business,” he says. “Coming from a travelling showman’s background, providing value for money and entertainment for families is kind of in my DNA.” From early on, Miller understood what people sought in a leisure experience—affordable and memorable family entertainment.

Having grown up managing fairground rides and amusement arcades, Miller honed his understanding of the entertainment sector. He emphasises the importance of delivering a high-quality experience: “It’s all about that quality experience, value for money, entertainment.”

As the years passed, he and his wife, Vanessa, who comes from a similar background, channelled their expertise into building a business responsive to modern families’ evolving needs.

Funstation is born

Funstation’s story began in Northampton, where Miller and his wife launched their first location more than 20 years ago. At the time, the UK’s family entertainment market was primarily seasonal, with a strong focus on seaside arcades and fairgrounds. Miller was determined to change that:

“We operated within a holiday park, a seasonal business that relied heavily on the weather. We wanted to future-proof our income and create something less reliant on seasonality.”

This led to the birth of Funstation, a brand designed to merge international best practices with a deep understanding of UK customer preferences. Miller saw potential in the family entertainment centre (FEC) model popular in the United States. He sought to adapt it to the UK market. “We looked at the international market, and you could see a completely different approach,” he says. “We thought, ‘Maybe we could try to develop a kind of international brand flavour in the UK.’”

However, convincing UK shopping mall operators to get on board took a lot of work. “People didn’t understand the product or the market,” Miller says. “They thought it was something very seaside-based. They didn’t see the value of that in the modern shopping mall.” But persistence paid off, and a breakthrough came with a partnership near Leeds. Here, Funstation established itself within Xscape Yorkshire, a larger leisure development and one of the first of its kind in the UK.

Steady expansion

Following its successful entry into the market, Funstation’s growth accelerated. What began as a small operation has since expanded to 14 locations across the UK. This includes sister brands Volcano Falls Adventure Golf and Laser Station Laser Tag.  While the pandemic forced them to close some sites, such as their location in London’s Shepherd’s Bush, the company continues to move forward, with new opportunities consistently opening up.

Miller’s strategy for growth has always been organic, preferring to reinvest profits rather than take outside investment:

“We could have grown much quicker if we took VC money, but that’s not our background. We’re not doing this for a quick buck. When you’re in the industry all your life and come from generations of people before you, it becomes more of a vocation.”

Instead, Funstation has expanded by identifying gaps in the market, particularly in the UK retail sector. Miller identified a growing demand for family-friendly attractions in shopping malls that were not solely focused on gaming or gambling. “We saw an opportunity to bring this more leisure-based experience into the retail sector that wasn’t just slot machines. We worked with landlords who got it, and we grew rapidly within their portfolios.”

As Funstation grew, the company began to diversify its attractions. While it initially started with arcade games and bumper cars, it soon added laser tag, creating its in-house brand, Laser Station. Over time, it also entered the indoor mini-golf market, which has become another significant part of its portfolio.

“If an opportunity arises, we have a catalogue of activities we can bring to a location to provide a well-rounded family experience.”

This flexibility has allowed Funstation to tailor its offerings to different locations, ensuring that each site is a destination in its own right. Whether next to a cinema, within a shopping mall, or as part of a larger entertainment complex, Funstation creates a unique mix of attractions that appeal to children and adults.

Funstation pioneers cashless solutions

One of Funstation’s most innovative decisions came over a decade ago when the company chose to go cashless. This was at a time when most UK family entertainment centres were still relying heavily on coins. Miller recalls the initial challenge:

“On weekends, people had limited access to cash, and the ATMs in the retail malls would run empty by lunchtime. Our adventure golf and laser tag could take card payments, but our arcade operation suffered.”

Recognising that cash was becoming less accessible and that younger customers were already gravitating toward card payments, Miller decided to explore cashless options. “We looked at how the cashless society was evolving, and we realised that this was the future,” he says. Funstation became one of the first FECs in the UK to adopt an entirely cashless system, with its first cashless location opening a decade ago.

At the time, Miller’s decision was considered radical, and many industry peers were sceptical of its success. “A lot of my colleagues thought I was nuts,” he says. “We were at the forefront of bringing cashless into the UK.”

Implementing cashless technology required careful consideration, particularly given the UK’s long-standing tradition of coin-operated amusement machines. “For generations, people in the UK have been used to putting a coin in the slot,” Miller said. “We had to think long and hard about changing that mindset.”

After extensive research—including site visits to the US and the Middle East—Funstation partnered with Embed, a leading provider of cashless payment solutions for the entertainment industry. “Embed were the people we recognised as understanding what we were trying to do. Their background and experience made them a great fit for us.”

This partnership allowed Funstation to roll out cashless technology in new locations, streamlining the customer experience and improving operational efficiency. “It was easier to open new locations as cashless from the start,” Miller says, though converting existing locations proved more challenging. “Changing hearts and minds was tough, but once customers got used to it, they appreciated the convenience.”

Cashless success with Embed

Funstation’s decision to embrace cashless payments proved to be ahead of its time. As society continues to shift toward card and digital payments, the company’s early adoption has placed it at the forefront of the industry.

Miller believes that Funstation’s cashless transition has set an example for the broader UK entertainment market:

“Many people in the industry have now followed suit. But we were one of the first to make it work on a large scale. We’ve always tried to be ahead of the curve, whether through our cashless system or bringing new attractions to the UK market. It’s about staying flexible and responsive to what our customers want.”

One of the pivotal moments in Funstation’s evolution was the decision to partner with Embed. Regarding the importance of choosing the right technology partner, Miller says: “We did a lot of research when we first decided to go cashless. We spoke to all the cashless providers, and with Embed, we felt they understood what we were trying to do. If you try something new, you want to work with the best in the business and people you like.”

“They were great in the early days, supporting us in adopting cashless, and they’ve constantly been a great support since then. They knew bringing in cashless would benefit the UK, and they needed somebody who was looking at doing things differently. So, together, we looked at how we could best do this and how we could solve the problem. We bought into that as a partnership.”

Strong partners for Funstation

Reliability was paramount, as the company’s success hinged on maintaining trust with customers and staff: “Your whole reliability is in their hands. Your whole business is in their care. Embed was a great fit and a good product from day one.”

This relationship has flourished over a decade as Funstation has continuously refined its operations to adapt to the changing landscape of family entertainment. Through challenges and triumphs, the collaboration with Embed has proven fruitful. “I’m very pleased to say that now, over ten years of operating with Embed, it is very sound,” Miller says.

He also emphasises that the foundation of any successful partnership lies in mutual understanding and adaptability. “You’ve got to invest with the right people, with strong partners, like Embed. We have challenged them, and they’ve challenged us. It’s a good relationship. They listen, we listen, and we improve together.”

Data-driven decisions: Funstation understands customer behaviour

One of the most significant advantages of transitioning to a cashless system is the wealth of data it provides. This data-driven approach allows businesses like Funstation to adapt their strategies and continuously enhance the customer experience.

However, Miller also discusses the importance of balancing data with on-the-ground insights: “You need to be in the venue, speaking to the customers, listening to their reactions. That’s a massive thing when running a business.” Understanding the customer experience is crucial in evolving the business model effectively.

The transition to cashless is not just about eliminating coins; it’s about reshaping the entire customer experience. This change in perspective enabled Funstation to leverage retail psychology and enhance customer interactions. The shift allowed Funstation to offer customers various payment options, transforming the traditional arcade experience into a more modern retail environment.

The introduction of cashless systems has also facilitated upselling opportunities previously impossible in a coin-operated model. “We needed to adapt some of that retail psychology in our business,” Miller says, highlighting how Funstation has integrated retail strategies to drive customer engagement and satisfaction.

Embracing future technologies

As Funstation continues to grow, Miller remains committed to exploring innovative technologies. The introduction of Embed’s Mobile Wallet is on the horizon as the company seeks to stay at the forefront of cashless solutions.

“We are looking at Mobile Wallet, and it’s interesting. Even though we’re now 20 years into Funstation and have a lot of experience, we’re still learning, still looking to improve,” he says.

Miller’s journey offers valuable insights for aspiring FEC operators: “The top tip is to look after customers.” In an era of abundant consumer choices, prioritising customer experience is vital for success. Additionally, Miller advises industry newcomers to embrace change. Adapting to technological advancements and evolving customer preferences is crucial for staying relevant in the entertainment industry.

A bright future for Funstation

By embracing cashless solutions and prioritising customer experience, Funstation has thrived and set a standard for the industry. With a solid partnership with Embed and a forward-thinking approach, it is poised to lead the way in the next generation of cashless entertainment, embracing new technologies while remaining rooted in the values that make it a favourite destination for fun-seekers across the UK.

As Funstation celebrates more than 20 years in the business, the company shows no signs of slowing down. With new locations in development and a growing portfolio of attractions, Miller remains focused on the future: “We’ve come a long way, but there’s still so much more we can do.”

As the entertainment world evolves, Funstation is ready to meet the challenge head-on, ensuring customers leave with memories that last a lifetime. It is well-positioned to continue shaping the UK’s family entertainment landscape for years to come. “It’s been a fantastic journey so far,” Miller says, “and we’re excited for what’s next.”