How Chuck E. Cheese Is Remaking Itself for Gen Alpha

As its tagline notes, Chuck E. Cheese has always been the place where “a kid can be a kid.” Now, to get more of them through its doors, it’s undergoing a marketing reset, creating more content and promotions aimed at children, not just their parents.

Mark Kupferman, who joined as Chuck E. Cheese’s chief insights and marketing officer in November 2023, told ADWEEK the brand had conducted months of research with families to inform its new strategy, which is kicking off with the launch of its Fun Pass, a subscription loyalty program that offers discounts on food and arcade coupons.

“If one thing has become clear, it’s that kids are the key proponent of almost every visit and birthday party,” Kupferman said.

“Given that it’s always been our mission to put kids first, this shift is intended to ensure that we continue to build awareness with the segment that matters most.”

Spending big on ‘kidvertising’

In its ’90s heyday, Chuck E. Cheese was the go-to for kids’ birthday parties. Gooey pizza, performances from slightly unnerving animatronic bands, and a quick play on Donkey Kong followed by a sprinkle sheet cake chaser—what’s not to like?

Throughout the 2000s and 2010s, though, the 47-year-old Irving, Texas brand struggled to keep Gen Z’s attention as gaming became an at-home activity and entertainment technology advanced considerably beyond Donkey Kong.

Food sales slid as fewer patrons turned to Chuck E. Cheese for birthday parties and family experiences, while more local entertainment centers sprung up across the U.S.

One private equity acquisition and a failed stock market float later, owner CEC Entertainment (which also owns Piper Pizza) was hobbled by Covid-19 and eventually filed for bankruptcy in 2020.

CEC has since emerged from the Chapter 11 filing, with reports of a potential sale swirling as recently as Dec. 23, with Reuters reporting that the company told potential acquirers it generates around $1.2 billion in revenues pre-tax.

While CEC has declined to comment on a potential auction, the company has been busy retooling its customer experience, remodeling over 200 stores in the U.S. since 2023 to feature interactive dance floors and trampolines.

Alongside this, Kupferman has been allocating more of its estimated $100 million marketing spend into awareness-focused channels including cinema, billboards, and streaming. High-octane creative promoting the Fun Pass will show up in these places.

“We’re also forging partnerships with numerous kid-focused brands and testing a variety of experiential marketing opportunities that allow us to engage directly with kids and their parents,” he said.

These have included a tie-up with YouTube child creator Ryan’s World by offering a limited-edition Ryan’s Way pizza at locations nationwide.

In addition, it recently partnered with the American Society for Deaf Children for a long-term partnership that will comprise fundraising, implementing American Sign Language (ASL) training across its restaurants, and debuting a Sign Along series on YouTube.

Awareness among today’s kids, AKA Gen Alpha, is the key KPI for Kupferman right now, and his team is working on “innovative” ways to measure their reaction. He said the brand is also tying its efforts into special promotions that are “easy to track.”

Nostalgia and affordable experiences

Kupferman said Chuck E. Cheese’s marketing budget is still being funneled into performance-focused channels aimed at parents, especially for its value-focused messaging.

“However, given how crowded the family out-of-home entertainment marketplace is now, we’re working extra hard to identify new and interesting ways to stay top-of-mind with both kids and their parents,” he explained.

As much as the Fun Pass, which offers three subscription tiers, is aimed at kids, it’s also designed for parents looking to entertain their little ones amid a cost-of-living crisis.

Starting at $7.99 per month, guests can visit Chuck E. Cheese as often as they want and play games every visit, choosing from tiers that include different amounts of gameplay, as well as food and drink discounts. One family can share a single membership.

“Parents have been telling us that high prices are keeping people from spending family time away from home with their kids,” said Kupferman, who said Chuck E. Cheese had been testing the program with high levels of success in several markets for the last nine months.

To encourage millennial moms and dads to relive their childhoods, Chuck. E Cheese, like McDonald’s, has also been leaning heavily into nostalgia.

Last year, it brought back the voice of its rat mascot Chuck E. in all commercials and ads.

“He means so much to so many people,” Kupferman said. “His presence helps us reinforce everything unique and special about our brand. You’ll be seeing more of him in our future campaigns.”