The COVID-19 pandemic has had a significant impact on Chuck E. Cheese, with the company's parent group, CEC Entertainment, filing for Chapter 11 bankruptcy protection in 2020 due to the financial strain caused by the pandemic and prolonged closures. The pandemic was described by CEC as the most challenging event in the company's history. Despite these challenges, Chuck E. Cheese has shown signs of recovery, with a focus on subscription services, menu overhauls, and the introduction of trampolines.
Characteristics | Values |
---|---|
Parent company | CEC Entertainment |
Bankruptcy status | Filed for Chapter 11 bankruptcy protection |
Reason for bankruptcy | Financial strain caused by COVID-19 and prolonged closures |
Number of locations | 555 |
Reopening status | Nearly half of locations have reopened, with plans to reopen more weekly |
Company expectations | To operate normally |
Company confidence | Confident about the future |
Company employees | At least 16,400 |
Company locations | 47 US states and 16 countries |
What You'll Learn
CEC Entertainment filed for bankruptcy during the pandemic
On June 25, 2020, CEC Entertainment, the parent company of Chuck E. Cheese, filed for Chapter 11 bankruptcy protection, citing the financial strain caused by the COVID-19 pandemic and the prolonged closures of its entertainment centres due to stay-at-home orders across the United States. At the time, CEC Entertainment owned and operated 555 Chuck E. Cheese locations in 47 US states and 16 countries, with a total of at least 16,400 employees.
In a statement, CEO David McKillips acknowledged that the preceding months had been the most challenging in the company's 40-year history but expressed confidence in the future of the brand. He also assured that the company expected to operate normally during the restructuring process, including the reopening of its locations. Indeed, nearly half of its locations had already resumed operations at the time of the bankruptcy filing, and the company planned to reopen more locations weekly.
The financial troubles of CEC Entertainment predated the pandemic. Since being acquired by Apollo Global Management in 2014 for $1.3 billion, the company had lost money in four of the past five years, with a loss of $28.9 million in the previous year, representing a 41% increase from its 2018 loss. Despite these financial challenges, CEC Entertainment approved substantial retention bonuses for its top executives just weeks before declaring bankruptcy.
However, as of January 2025, it appears that CEC Entertainment has successfully climbed out of debt. The company has posted eight straight months of same-store sales growth and has introduced new initiatives such as a subscription service, trampolines, and a revamped menu.
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The company closed 34 locations
The COVID-19 pandemic has been a challenging time for many companies, and CEC Entertainment, the parent company of Chuck E. Cheese, is no exception. In 2020, the company filed for Chapter 11 bankruptcy protection due to the financial strain and prolonged closures caused by the pandemic. As a result, they made the difficult decision to close 34 locations across the country. This decision was made to ensure the long-term survival of the company and its other locations.
At the time, CEC Entertainment owned and operated over 555 company-owned locations and 186 franchisee spots. With nearly half of their locations closed due to the pandemic, the company faced significant financial strain. The pandemic was described by CEC David McKillips as "the most challenging event in our company's history." Despite this, McKillips expressed hope that the company would "get back to the business of delivering memories, entertainment, and pizzas for another 40 years and beyond."
The decision to close the 34 locations was likely a strategic one, allowing CEC Entertainment to restructure and focus on their remaining locations. This move appears to have paid off, as the company has since climbed out of debt and posted eight straight months of same-store sales growth. This success can be attributed to several factors, including the introduction of subscription services, trampolines, and a revamped menu.
The specific locations that were closed included spots in Oklahoma City-Del City and Oklahoma City-Westgate, as well as one in Utah. These closures may have been based on a variety of factors, including performance, lease negotiations, and market saturation. Unfortunately, these closures also resulted in job losses, though the exact number is unknown.
Overall, the closure of these 34 locations represents the significant impact that the COVID-19 pandemic had on businesses, particularly in the entertainment and hospitality industries. CEC Entertainment's swift and strategic response to the crisis allowed them to weather the storm and emerge stronger on the other side, ensuring the continued operation of Chuck E. Cheese locations nationwide.
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The COVID-19 pandemic was the most challenging event in the company's history
CEC Entertainment, which also owns Peter Piper Pizza, had to restructure its balance sheet to support its reopening and long-term strategic plans. The company had a massive presence across the United States, with over 555 company-owned locations and 186 franchisee spots before the pandemic hit. The impact of COVID-19 was so severe that CEC decided to close 34 locations across the country.
However, despite the challenges, the company remained optimistic about its future. CEO David McKillips expressed confidence in the 40-year-old brand, and as of January 2025, Chuck E. Cheese has bounced back. The company has successfully climbed out of debt, posting eight straight months of same-store sales growth. This turnaround can be attributed to several new initiatives, including the introduction of a subscription service, the addition of trampolines, and an overhauled menu.
The COVID-19 pandemic undoubtedly dealt a heavy blow to Chuck E. Cheese, but the company's resilience and adaptability have allowed it to persevere and emerge stronger on the other side.
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Chuck E. Cheese has introduced trampolines
Chuck E. Cheese has been working hard to adapt to the challenges of the coronavirus pandemic. In 2020, it was reported that the restaurant chain was delivering pizza under the name Pasqually's Pizza and Wings. Now, in a new and exciting development, Chuck E. Cheese has introduced trampolines to select locations across the United States and Canada.
The Trampoline Zones are designed exclusively for little kids, providing a secure and fun space for younger guests under 56" tall to bounce and play safely, away from older children. The introduction of these zones is a response to consumer demands and the active play needs of young children.
The Brooklyn, New York location, for example, has been transformed into a brand-new Fun Center, featuring the first U.S. Trampoline Zone, alongside 25 popular arcade, sports, and kid-focused games, an interactive dance floor, and a large-format video wall. The Brooklyn location also offers a quieter dining and entertainment environment with dimmed lighting and a sensory-friendly arcade experience on the first Sunday of every month through its Sensory Sensitive Sundays program.
Chuck E. Cheese's commitment to creating a fun and inclusive environment for all kids is further demonstrated by their national Sensory Sensitive Sunday event during World Autism Month, where select locations open two hours early to offer a sensory-friendly experience for families.
With the addition of the Trampoline Zones, Chuck E. Cheese continues to innovate and provide families with a safe, clean, and worry-free entertainment experience. The All You Can Jump Passes allow guests to maximize their experience by offering unlimited access to gaming, jumping, dining, and more during their visit. The Trampoline Zones are also available as a birthday party add-on, creating unforgettable memories for children celebrating their birthdays.
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The company has overhauled its menu
The Grown-Up Menu includes four new pizza flavours: Signature Meatball, Homestyle BBQ Chicken, Spicy Hawaiian, and Spicy BBQ Piggy. The pizzas are brushed with garlic butter, sprinkled with Italian seasoning, and offered in a large size only. The Signature Meatball pizza is topped with marinara, shredded mozzarella, all-beef meatballs, and fresh spinach. The Homestyle BBQ Chicken pizza features BBQ sauce, shredded mozzarella and cheddar cheeses, chicken, red onions, and green peppers. The Spicy Hawaiian pizza includes sweet chilli sauce, shredded mozzarella and cheddar, ham, pineapple, and jalapeños. Lastly, the Spicy BBQ Piggy pizza is loaded with spicy Korean BBQ sauce, shredded mozzarella and cheddar, ham, bacon, sausage, jalapeños, and red onions.
In addition to the pizzas, the Grown-Up Menu also offers three new wing sauces and two new rubs: Buffalo BBQ, Spicy Korean BBQ, Louisiana Honey Hot, Lemon Pepper rub, and Chili Lime rub. Customers can choose between bone-in or boneless wings and select their preferred sauce or rub.
The menu also features mouthwatering all-beef meatballs smothered in a choice of Sweet Chili, Spicy Korean BBQ, or Buffalo BBQ sauce. For dessert, adults can indulge in celebrity chef Buddy Valastro's famous cakes, including Confetti, Vanilla Rainbow, and Chocolate Fudge flavours.
The Grown-Up Menu is part of the company's strategy to create new experiences and offer diverse flavours to appeal to both kids and parents, ensuring that every visit offers new tastes and memories for all ages.
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Frequently asked questions
Chuck E. Cheese is open for to-go orders and deliveries.
Chuck E. Cheese is disguising themselves as Pasqually’s Pizza & Wings on Grubhub.
Pasqually’s Pizza & Wings recipes use fresh, homemade pizza dough, just like Chuck E. Cheese, but it is a different pizza that features a thicker crust and extra sauce, giving consumers a more flavorful, more premium pizza experience.
Chuck E. Cheese is offering at-home party packages to keep kids entertained during the pandemic.