Combining Play and Work: The Profit Potential of Coworking Spaces in Indoor Playgrounds

 In the evolving landscape of work and childcare needs, indoor playgrounds have a unique opportunity to diversify their offerings and tap into a growing market need by incorporating co-working services to their facilities.

This blend can not only maximize the use of available space but also attract a broader customer base, including parents and caregivers seeking productive environments while their children play. 

So before we get into the HOW–let’s first discuss in more detail WHY many indoor playground and play cafe businesses are considering making coworking a part of their business. 

Adding a co-working offer is attractive to many owners for a few reasons.

• Childcare Is Essential. When operating a business in an uncertain economy, it makes sense to expand your view on how you can serve your ideal customer audience. While many indoor playgrounds focus on premium items most consider to be “luxuries” like high-end parties and unlimited memberships, it becomes increasingly important to diversify these streams of revenue with what can be considered more of a NEED in times like these- and childcare is a great example.  
• Evolving Needs Of Working Parents. Speaking of today’s tough economy, co-working spaces have emerged as a vital solution for the evolving needs of the modern workforce. With the rise of remote work, freelance opportunities, and the gig economy, professionals increasingly seek flexible, cost-effective, and community-oriented work environments. Traditional office leases are often impractical for startups, small businesses, and independent workers who prioritize adaptability and collaboration. Co-working spaces address these needs by offering versatile membership options, access to premium amenities, and a supportive network of like-minded individuals. Additionally, the integration of co-working spaces within family-centric venues, such as indoor playgrounds, aligns perfectly with the growing demand for work-life balance, particularly among parents. This innovative model not only supports professional productivity but also enhances community engagement, making co-working a sustainable and attractive option in today's economic landscape.
• It’s Low Barrier-To-Entry. Unlike a facility that offers full-time daycare and requires extensive paperwork, approvals, and licensing, it is relatively easy and inexpensive to add coworking to your list of services. Since parents stay on-site, no additional licensing is typically needed. Most insurances will approve this new service as well, typically requiring only a supplemental form in addition to your normal facility waiver, which includes things like an agreement to stay on-site, handle toileting needs, and things like that. If you are in my Play Cafe Academy or Play Maker Society program, you have access to a supplemental form AND waiver you are free to customize and plug-and-play into your business!
• There Is Less Risk. Because parents stay on-site, there is also less inherent assumption of risk on your end, as the business owner. If there is an emergency or a behavioral issue, parents can be quickly notified and brought in to handle the situation alongside staff. 
• Reduction of Seasonality. While indoor play is extremely seasonal in general, the need for childcare is not. For indoor play spaces finding themselves affected by the summer slowdown, coworking can be a great way to mitigate this business risk and boost summer sales.
• It Attracts New Customers. Co-working spaces can attract a different demographic, such as remote workers, freelancers, and small business owners, expanding your customer base beyond just stay-at-home parents and caregivers. Working parents often have more disposable income, meaning they can be more likely to spend more on other offerings as well- such as cafe items, parties, premium classes, and more– so getting them IN the door with a coworking offer can lead to long-term benefit, beyond just the initial service.
• Unique Opportunity for Business-to-Business Sales. I have mentioned quite a few times here that it is often easier to sell to BUSINESSES rather than individuals, especially approaching a recession. Offering coworking allows you an opportunity to approach local businesses with the option to add coworking memberships or packages to their employee compensation plans, which can be very attractive to companies looking to retain their remote workers and keep morale and productivity high. So not only does coworking expand your customer base to better serve working families, it opens the doors to an entirely new world in terms of B2B sales. 

1. Increased Utilization of Space. Co-working spaces can make use of underutilized areas and team members during off-peak hours, maximizing the potential of your facility and increasing profitability.
2. Enhanced Community Building. Co-working spaces foster a sense of community among members, creating opportunities for networking events, workshops, and other social gatherings that can boost engagement and retention. You can encourage current co-working clients to invite friends and people in their network to these events, leading to more bookings and cow-orking members. 
3. Enhanced Community Reputation.  Supporting local professionals and families can enhance your reputation within the community as a business that understands and meets the needs of modern families and workers, especially in a difficult economy for many families. Many news networks and local publications will likely want to over your business, leading to expanded awareness and recognition of your brand and indoor playground business as a whole!

Now, full disclosure, adding co-working DID NOT work for my particular indoor playground business, at least for our first location. And I DO NOT think it is a good fit for every space.

Let’s quickly address WHY it didn’t work for us before I give you my best tips on implementing co-working as a service if it IS a good fit for your business. Because while this did not work for me personally, I have since helped several clients successfully implement profit-generating co-working programs into their indoor playground facilities- and I have seen what works– AND what doesn’t– firsthand. 

Here’s why it didn’t work for me and why it CAN’T work for every space, in a nutshell:

• No Separation of Space. One of the things parents loved MOST about our facility was that, no matter where they were in our space. However, this posed a big problem when it came to coworking. Parents COULDN’T hide– meaning they were always in their child’s range of vision. This led to a lot of tantrums, disruptions, and frustrations on behalf of staff and customers. This is one of the BIG reasons we added a classroom/ multi-use room to our second location, and why I always recommend new spaces do so.
• Our Target Age-Range. Our competitive landscape led me to design a space best suited for babies and young toddlers, and so that’s who we naturally attracted and advertised to most prominently. However, this is a high-needs age, making it necessary to have a large amount of additional staff to care for the children.
• Our Local Demographics.  I sold my business right before the pandemic hit, and there were just not enough people working remotely in our area to make this revenue stream sustainable. Be sure to validate your idea with a pilot program before doing a full roll-out, to ensure it’s something enough people in your area want and (here’s the KEY!) are willing to pay a fair price for. I’ll discuss more about validating co-working as a viable expansion option for your indoor play business in the next session.

Not Sure If Co-working Is a Viable Revenue Stream For Your Indoor Playground Business? Consider Validating Your Idea With A Pilot Program.

Before fully committing to the co-working space, it’s wise to conduct a pilot program to ensure it’s not only something local parents are willing and able to pay for, but also that your space is a good fit for the arrangement (remember- our first location was NOT a good fit- which we learned the hard way!).

Here are the basics of a successful pilot program:

• Lean First On Current Customers. While co-working can expand your customer base long-term, it’s best to engage your current followers, customers, and email list for any pilot program. These people already have a degree of familiarity of your facility and already know, like, and trust you– making them more likely to actively participate in your pilot, which makes filling the program easier and quicker.
• Set Clear Objectives: Define what you aim to achieve with the pilot program, such as a specific number of users or feedback on the space and services.
• Choose a Limited Time Frame: Run the pilot for at LEAST a few months to gather sufficient data without committing long-term. Ensure you give yourself ample time to get enough customers in your program as well. If you don’t get enough people right away- don’t give up. It takes strategy, time, and significant marketing effort to launch a new service. 
• Offer Incentives: Provide special discounts or free trial hours to attract participants to the pilot program. You can also give them a special “founding member discount” if you do end up rolling out a full coworking membership or program at the conclusion of your trial.
• Gather Feedback: Collect feedback through surveys, interviews, and observation. Focus on understanding user satisfaction, pain points, and suggestions for improvement. And it's important to collect this data not just from your participating customers, but also your STAFF! They may notice things you don’t– especially when it comes to the nuances of your space and how well co-working fits in with your other offerings. 
• Analyze Data: Use the collected data to assess the feasibility and potential success of the co-working space. Look for patterns and insights that can guide further development. For example- were there certain days or time of day most people needed co-working? Was there a “magic” length of time that ensured the best possible experience for all involved? Things like that.
• Adjust: Based on the feedback and data, make necessary adjustments to the design, services, and pricing. For example, are there easy improvements you can make in your space before rolling out? Was there anything confusing about your marketing messages or forms that tripped people up? These are all opportunities to improve before launching to the general public.
• Execute: If the pilot proves successful, consider a phased rollout to expand the co-working space gradually. For example, launch ONLY to people willing to commit to a subscription or membership before launching additional ways to pay– like packs of co-working passes or individual day slots. 

While your pilot program is underway, you can start researching and preparing for the potential next phase. 

Because while you can lean on your current customers and followers for your pilot program, eventually you will want to expand beyond your existing universe to others in your area who have never utilized your space.

And this phase will require more planning and strategy. 

Before a full roll-out, here are some additional steps you should take to ensure the program is a success. 

1. Conducting Market Research

Before diving into the integration, it's crucial to understand the local market demand for co-working spaces among parents. This again goes BEYOND what your current customers and audience members need and want. This requires a high-level view of your local area as a whole.

Conduct surveys, focus groups, and market research to gather insights about the needs and preferences of your target audience, who may not be familiar enough with your facility to participate in a pilot program. 

This step will help you tailor your co-working space to meet specific demands, ensuring higher chances of success. You can find participants for these types of groups in local Facebook and parenting groups, by asking local business owners and entrepreneurs, or leaning on your personal network to share your opportunity.

And don’t be afraid to think outside the box. Potential users of your service (and therefore potential survey and focus group participants!) can include:

• Working Parents and Caregivers: Parents who work from home or freelance can benefit greatly from having a dedicated workspace while their children are engaged in safe, supervised play.
• Entrepreneurs and Small Business Owners: Local entrepreneurs and small business owners might prefer a co-working space with childcare over traditional office spaces and daycare arrangements.
• Students and Freelancers: Parents pursuing higher education, tutors, and freelancers can also find value in a quiet, productive environment close to home.
• Community Groups: Local groups and organizations might use the co-working space for meetings or collaborative projects. If there are local organizations or individuals who hold such meetings, reach out to them!

2. Creating a Functional Layout

Creating a functional and appealing co-working space within an indoor playground requires thoughtful design.

While you are gathering feedback from customers and staff, consider the following elements:

• Separation: Ensure the co-working area is clearly separated from the play area to minimize distractions and maintain safety.
• Safety: Speaking of safety, ensure a clear way to differentiate coworking participants from the general public. T-shirts, wristbands, nametags, or other methods can be helpful for both your staff and other customers.
• Comfort and Amenities: Provide comfortable seating, desks, high-speed internet, power outlets, and other office essentials.
• Soundproofing: Implement soundproofing measures to create a quiet and focused work environment. Example: Soundproof pods people can rent for phone calls or focused work.
• Dedicated Zones: Consider creating different zones within the co-working space, such as private offices, meeting rooms, and open desk areas to cater to various needs.

3. Focus on Recurring and High-Ticket Sales

While flexibility is key to attracting a diverse range of users, it’s essential you are are not setting yourself up for failure by relying TOO heavily on single day passes. 

I have discussed at LENGTH why it’s absolutely crucial for any indoor playground business to focus on recurring and high-ticket revenue streams, but with coworking it can be even MORE important, because offering coworking requires preplanning and additional staffing which is a large direct cost, and can be devastating to your bottom line if your incoming sales cannot cover your costs and turn a profit.

Consider offering coworking in two-three MAIN offers, and training your staff on an effective sales strategy, with individual or drop-in passes ONLY available as needed for NEW, curious customers or for a high premium over your other offers.

Offer 1: Monthly Memberships: For regular users who require consistent access.

Offer 2: Packs of Passes: Offer a savings off your daily or drop-in rate, similarly to how you would do for an open-play pass. If people do NOT need consistent access (at least 1-2 times per week), they should be directed to this offer INSTEAD of a single pass. This will increase the reliability of your co-working revenue and allow you to staff more efficiently.

Offer 3: Family Packages: Combine access to both your open-play and coworking offerings, making it appealing for parents who work part-time or are freelancers or students. 

For more information about how to integrate both a membership offer and pack of passes option without creating confusion or overwhelm, listen to my Profitable Play Podcast episode 208.

Determining the right pricing for each of these offers is crucial for its success. Consider the following factors:

• Local Market Rates: Research what other co-working spaces in your area are charging to stay competitive.
• Cost of Amenities: Ensure that your pricing covers the cost of amenities provided, such as high-speed internet, office supplies, and staff.
• Other Services: Ensure your pricing is in-line with your current offerings, especially if you will be creating combined offers such as coworking and open play.
• Discounts and Promotions: Attract new users with introductory offers, discounts for long-term commitments, or bundle deals for families.

Sample Pricing Structure:

• Hourly Rate: $15-20 per hour (this option should be MOST EXPENSIVE in terms of cost-per-hour to encourage high-ticket and recurring membership sales)
• Monthly Membership: $200 per month, per child (consider a discount for siblings) for 20 hours of coworking ($10 per hour, a significant per-hour savings compared to the hourly rate)
• Family Package: $300-$400 per month (includes 20 co-working hours and unlimited open play)

5. Create a Community

Building a community around your co-working offer can enhance user experience and retention. Host networking events, workshops, and social gatherings during your pilot to encourage interaction among members and attract new ones. This sense of community can differentiate your co-working offer from others and create a loyal, connected customer base.

6. Research and Implement Technology Solutions

Invest in technology to streamline operations and improve user experience. Consider using booking and management software to handle reservations, payments, and memberships. 

My favorite complete business solution is Wellness Living. You can book a FREE demo using this link to secure a 50% discount for a limited time!

Additionally, offering amenities like high-speed Wi-Fi, sound proof pods, printing services, and virtual meeting tools can enhance the appeal of your co-working space.

7. Plan Your Launch.

Effective marketing is essential to attract potential users to your new co-working space. Utilize social media, email marketing, local advertising, and partnerships with local businesses as discussed to spread the word. 

Highlight the unique benefits of your co-working space, such as the convenience of on-site childcare and the community atmosphere.

And create TONS of marketing assets (photos, videos, etc) during your pilot period to use during your full roll-out!

You should also focus on getting written and video testimonials as well as google reviews from pilot program participants to enhance your social proof and increase the likelihood of a cold audience member (i.e. a local parent who has NEVER been to your facility) feeling comfortable enough to enroll in your offer.

8. Set Success Parameters.

Using your pilot program as a guide, set some goals to make sure this new revenue stream is ACTUALLY contributing positively to your overall business. 

While I teach this full process in detail in my Play Cafe Academy program, here are some basic tips for setting financial goals:

• Know your costs. Total everything from staffing needs, marketing spend, technological advancements, materials, and space improvements.
• Work In a Healthy Profit Margin. When coming up with your pricing structure, make sure you are covering not just your direct costs, but also adding in at least a 60% profit margin to cover operating costs, take care of owners compensation, and to grow and reinvest in your business.
• Set Specific Goals. Based on your cost, pricing, and desired revenue- come up with a monthly number of memberships and pass pack sales you must hit. Break that number down even further to a weekly and daily goal, and involve your team in these goals as well. By educating your staff on your new offer and empowering them to sell successfully using a proven system, you can create excitement and buy-in and give incentives for making new sales. 
• Establish A Plan. Now that you know what your sales goals are, create a marketing plan to hit them. I recommend utilizing my founding member launch strategy or my marketing blitz strategy for the biggest impact in even a short amount of time.

By knowing your goals, you can more easily hold yourself and your team accountable and measure the success of your offer. 

Breaking down your goals and action items to the most granular level possible (like daily goals) can be incredibly effective and motivating and can ensure your foot and your staff's feet are never left off the accelerator to coast, which can cause a quick derailment from your end goal.

If you’d like to do a DEEP dive into this step including analyzing your marketing numbers and calculating the exact amount of website traffic, leads, and ad spend you need to reach your goals (and how to launch successful paid Google, Facebook, and Instagram ad campaigns), check out my advertising course JUST for indoor playground owners, which is a FREE BONUS for new Play Cafe Academy students for a limited time ($297 value).

9. Ensure Legal Soundness. 

Finally, make sure you include your business lawyer in the development of your program, since different countries and states have different rules when it comes to childcare, even if a parent stays on-site. 

Be sure to also ensure that your insurance company will cover this new revenue stream, and create a new supplemental form to use, in combination with your general liability waiver, to protect yourself in the event any incidents occur.

You may also want to create an enhanced staff training program, hire new team members, or improve your background checking procedures to ensure safety and to comply with any local laws or requirements from your insurance company.

In summary, integrating a co-working space into an indoor playground is a strategic move that can cater to the evolving needs of modern parents. 

By understanding market demand, designing a functional layout, offering flexible options, and conducting a well-planned pilot program, you can create a successful and sustainable co-working environment. This innovative approach not only maximizes space utilization but also provides a valuable service to the community, setting your indoor playground apart from the competition and adding significantly to your bottom line. 

For more indoor playground tips, recorded coaching calls with active owners, and guest experts--

🎧 Check out the Profitable Play Podcast here!

 🎥 Check out the Play Cafe Academy YouTube Channel here! 

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