EXCLUSIVE: Q&A with CEO of Sandbox VR, operator of virtual reality venues
Sandbox VR, which operates venues where players compete and collaborate in immersive virtual reality games, is leaning into franchising to expand its footprint in the U.S. and across the globe.
Sandbox VR outposts feature exclusive games, including original and branded experiences such as Squid Game Virtuals, created in collaboration with Netflix. Tickets cost $50 to $55 per person.
The San Francisco-based company, which saw 60% growth in franchise deals during the second quarter, currently has 34 U.S. locations, with a total of 50 overall. It plans to open 280 stores globally during the next four years.
Chain Store Age recently spoke with Steve Zhao, the founder and CEO of Sandbox, about the concept.
Tell us about the Sandbox VR experience — what can guests expect?
Sandbox VR is creating the future of entertainment by building the world’s most immersive experiences using bleeding-edge virtual reality technology. But we don’t just create virtual experiences. Our well-designed physical locations and attentive staff create a premium experience for players, starting when they walk in the door.
Our eight proprietary experiences are designed to be played together. Teams of up to six can freely roam and explore virtual worlds together, while relying on each other to succeed. The connection continues post visit as all guests receive personalized highlight videos that are similar to movie trailers and capture all the laughter, screams, intensity, and excitement of their experience.
How would you describe the target audience?
With eight experiences, built in-house in-house by our AAA gaming studio of industry veterans, we have something for everyone. The majority of our customer base is young adults. People choose Sandbox VR for date night, an engaging, immersive, and social group outing, or corporate team building.
Does Sandbox VR have a retail component?
There is a small retail component. Guests can purchase items to commemorate their experience, but our focus is providing a premium experience.
What is the average size of a Sandbox VR venue?
Each location is 5,000-plus sq. ft. with at least four private rooms in which guests experience the virtual worlds.
What is the company's location strategy?
We look for neighborhood centers and malls that have robust social surroundings, such as in and around restaurants. At 5,000 to 6,000 sq. ft. per location, our buildout fits in most locations. However, what’s important is having strong signage to attract foot traffic and, if the location is indoor, to have an exterior door entrance as we capture customers late in the evening.
How many U.S. locations is Sandbox planning to open?
We can support over 200 locations in the U.S. But we don’t have a store opening ballpark number to share for this year.
Going forward, will the majority of Sandbox’s U.S. stores be franchised?
Yes. Our growth plans will be focused on working with the right franchise partners.
