Following the success of its hybrid bowling alley chain, Japanese amusement giant Round One Corp. is gearing up for a major U.S. expansion. The company has announced plans to open around 100 claw machine arcades across the country by 2032.
Under the brand Round One U.S.A., it has already launched the first dedicated 2,000-square-meter arcade in Las Vegas this April, and has plans to open two more branches later this year.
Round One’s U.S. journey began in 2010 with its inaugural location in Los Angeles, California. Since then, it has rapidly expanded its bowling chain to more than 50 locations nationwide and plans to double this number in the next decade. By adding claw-machine arcades to its portfolio, Round One is investing $635 million (100 billion Japanese yen) to quadruple its U.S. operations.
The U.S. market has been a gold mine point for Round One. The company faced declining returns from its Japanese operations as interest in bowling waned among younger demographics. By 2010, its share price plummeted to below $1 (around 100 yen).
“We don’t see significant growth domestically owing to the decline in the youth demographic. From now on, North America will be the starting point for growth,” said Round One President Masahiko Sugino.
Sugino’s strategy has proven successful. For the fiscal year ending in 2024, Round One U.S.A. reported sales of $399.89 million (59.5 billion yen) and an operational profit of $75.28 million (11.2 billion yen), the company’s first record profit since 2006.
Looking ahead, the operating profit margin is expected to increase further and potentially surpass margins achieved in Japan by the end of fiscal year 2025. Round One’s stock price recently closed at $5.89 (853 yen).
Daiwa Securities Senior Analyst Satkuro Sekine described this shift as a “reassuring factor for the market.”
With the American real estate market opening up, especially as retail giants like Sears and Macy’s vacate properties in the wake of rising e-commerce, Round One is optimistic about its expansion plans.
Round One is not alone in finding success in the United States. Japanese competitor Genda, through its acquisition of the U.S-based National Entertainment Network (NEN) in June, has expanded to 8000 mini-locations across the country.
