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White Hutchinson Leisure & Learning Group, Kansas City, MO, USA

Should location-based entertainment prioritize sustainability?

Climate catastrophes, wildfires, and other sustainability crises are increasing the public's awareness of climate change and its potential dangers. A Pew Research Center report found that 78% of adults now consider climate change a serious problem.

This heightened awareness and concern are affecting their purchasing behaviors.

There haven't been any recent studies on how sustainability affects people's behaviors toward attending location-based entertainment venues (LBEs), including family entertainment centers (FECs). Still, we have a study from this year for two related industries that can give us some indications.

A Morning Consult study of over 2,000 U.S. adults examined the impact of sustainability in the food & beverage and the travel & hospitality industries. It found a high likelihood of purchasing from a company if the company prioritized sustainability. It was very high in the food & beverage industry at 57%. Most LBEs serve food & beverages, so the study could be a good indicator of sustainability attitudes for LBEs.

The study found that people had greater trust in food and beverage restaurants that offer sustainable products and may be willing to pay a slight premium for sustainably sourced products.

When the study looked at the impact of climate change on people's everyday eating and drinking behaviors by age cohorts, Gen Z adults and Millennials, the primary target market for most LBEs, showed the most significant impact.

In June, a Bentley-Gallup Force for Good study examined Americans' willingness to pay a premium for a product. 63% of adults said they were willing to pay a premium for a product with a positive environmental impact. Here's the breakdown by age and gender.

Both older Gen Z/younger Millennials and women showed the highest willingness to pay a premium for a product with a positive environmental impact.

These studies indicate that LBEs that have and market their sustainable practices will have enhanced appeal, especially to younger adults and women, and could achieve premium rates.

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