Think you could hack it at the Grand Prix? F1 Arcade gives you the opportunity to leave your family and friends in the dust, all year long.

Opening Bell

‘Drive to Survive’ Fans: Live Your F1 Dreams with this Racing Simulator

When the 2023 season formula one brought in $3.2 billion worth of sales. A 25% jump from a year earlier. And the 2024 season is expected to be the sports is longest ever F One Arcade which combines racing simulators with food and drink is opening its first American outpost next Monday and joining us now with more is Adam Breeden CEO and founder of F One Arcade. Adam. Welcome, good morning. Ok. So it looks like you are in an F One Arcade, in your words, tell me more about it. Yeah. So I'm currently in uh Boston in our, our inaugural launch of F One Arcade in the US. We have many more sites coming, but this is the first one. We're very excited. Uh F One Arcade is uh a, a large scale venue. 69 simulators here uh where you can race uh competitively, whether you're a fan or a non fan. And we have a game that we have created uh from scratch which enables beginners to race competitively with uh very good races with elite races. So people of any standard could come to race you get the simulator pick your skill level and the A I will take care of you if you are a beginner. But really our, our focus has been equally if not even more. So on the execution of food and beverage, we uh consider the offering on the food and beverage side to, to be competitive against the best in any stand alone food and beverage offering in any market. Um So we're, we're really creating a whole experience here uh where people can come out, enjoy a really fun activity in large groups or small groups. Uh and also have a really great night, great vibe DJ. So it's, it's kind of a new, this is, this is the future really of hospitality the way I see it that young people are drinking less. Uh people are wanting a story behind their nights out and they want something unique and fun cos it's not, you know, as in the past many years ago, it was more fueled by, by alcohol. So this is really, uh I see that the future of, of hospitality uh here's a question for you. What's the price point uh that you see for this experience, Adam from the food all the way to the arcade? Yeah, so the the racing uh is uh just uh $30 for half an hour, $20 sorry, excuse me, uh $20 just for half an hour racing. So um it's pretty, pretty reasonable. Uh Actually considering the experience of racing, you are in a full motion F one racing simulator. Uh this thing is a enormous thrill, uh has full motion that's called pitch roll and heat motion. And so when you're uh and the steering wheel has all the haptic feedback, so when you're in a simulator, it really does feel like you are immersed in that F one driver experience. So we, we really wanted to price it competitively. Um And on the food and beverage side, we are priced uh in, in not in a kind of mid, mid market range. N not, not uh not, not expensive at all, but really high quality, great value for money. Interesting. Uh But can you give us a range? Just so our viewer might have a sense? Yeah. So, you know, we'll have uh AAA burger for $20. Um We'll have um uh you know, we'll have a seafood tower for $100. Um So we have everything from the Caviar service to seafood tower to uh burgers and bar snacks uh and everything in between. Here's a question, how much of the simulator is tied to our current vehicles, the engineering of these vehicles, teams and, and even some of the famous drivers. Yeah. So the physics that sits behind the game um is the closest in terms of gaming uh to the physics of formula one. So the race engine we, we, we, we use is a, is a simulator specific race engine. So it's not the same as a console game. And so as a result, you feel the, the racing significantly more immersive. Um, you know, so, I mean, it, it, the actual experience of racing will be very close to the, to the, the simulators that the drivers use for, for their, for their simulating. Of course, you know, for, for, for the teams where they're, they're setting up the race, there's a huge amount and considerably more more tech behind that than we need to have here. Um But from a user experience perspective, you know, you're expecting the full F one experience. So I see your second location will be in Washington DC after this opening in Boston. Why these two specific locations to start with? Um Well, I mean, we have AAA list of a number of cities we are looking to come to in the US. Uh Boston has been a very uh good uh market for me previously having co-founded Flight Club and Patchak who are also here. Um We have many other cities that we are, we are looking at that, you know, m major metropolitan markets, uh great corporate business, uh great, you know, we, we love to locate in the cities where we can drive great corporate business. It's a really good family offering as well. Anyone from the age of seven can come and race. It's a, it's a great family day out and of course young people going out. So we look to locate ourselves in markets where we can capture those three audiences. How would you value uh the formula one market in America? Well, I mean, what we've seen over the last few years is nothing short of extraordinary F one has grown exponentially. Um You know, obviously the, the drive to survive series has been hugely popular, but that's compounded by uh Miami and Las Vegas, Grand Prix both uh uh making their debut a couple of years ago in Miami last year. Uh Las Vegas, uh obviously Las Vegas, I think was the, the the biggest sporting event, annual sporting event that we've seen ever. Um So, you know, I think Formula One in, you know, over the years a long time ago has, has tried to uh to come to the US. But I think under the liberty ownership of Formula one, I think they have done a great job of uh ensuring that the US market understands how phenomenal the F one race series is. I mean, it is, uh you know, it is one of the most exciting sports. There's a great storyline always uh behind the sport, which is always, it always keeps you going between the races, but it is the most technologically advanced, it is the most, um you know, you know, it's the most engineering advanced uh racing series that there is in the world. So, um I think everyone's very excited to be bringing it more, more to more and more people across the US. And in terms of seasonality here, I mean, obviously the F one season doesn't last all year long, but the fan base, as you mentioned is growing. I know the Netflix documentary series also helped drive to survive. How do you see seasonality playing into this? Especially when we are during the season of F One racing? Sure, I mean, the first thing to say is that we have created this whole concept, not necessarily for fans. This is for everybody. This is important to say this is why we put so much emphasis on the ability for everyone to race competitively. And also the, the emphasis on the quality of the food and beverage, the design DJ S for fans. Um This is an incredibly immersive experience. The design references, all sorts of iconic uh uh uh uh elements of formula one. Uh But we also have watch parties at every, almost every race we will be having, you know, 500 people in the venue screens everywhere, one very large screen and it'll be a carnival like atmosphere for, for fans to commune, come together, enjoy the racing, enjoy the buzz. And uh yeah, every city we go to, we're gonna be looking to build communities of fans around the venues. Uh But at the same time, of course, you know, the big appeal is, is, is for, is for the wider audience. And we've seen that in the UK. Uh, I mean, the, the vast majority of our, our audience is non fans. Um, it's families, it's corporate, it's people just wanting to go out and have a good time. So, um, it's, it's, it's for both markets. So in terms of seasonality. Yes, of course. I mean, the, the, the F one season runs for, you know, for, for nine months of the year. So, um, it's, it's very much, almost all year round. Um So, you know, um we'll be capitalizing on that. So I see here that F One Arcade has received an investment from Formula One luminaries, um, like some of the drivers and even the mclaren racing CEO, how does that set your company up for success? Well, I think, I think it's a great endorsement that, um, that the teams themselves see the value in what we are creating here cos you know, when we're at scale here in F One Arcade, we'll have more football coming through the venues than the entire Formula one racing season globally. But I think, um there's some clever people in the Pando who, who, who, who've seen the, the potential. But, um, you know, uh Zach's a great guy. We, we're very happy to have him and, and Lando invest. Uh And of course, you know, we, we're delighted to have received an investment from Liberty Media last year who, who led our, our round last year. All right, Adam Breeden founder and CEO of F One Arcade Adam. Thank you.