Chuck E. Cheese: Closed For Good Or Coming Back?

Chuck E. Cheese has been a staple of childhoods for decades, known for its pizza, birthday parties, and animatronic mouse mascot. However, in recent years, the company has faced financial troubles, with its parent company CEC Entertainment filing for Chapter 11 bankruptcy protection in 2020. While CEC Entertainment has since climbed out of debt, the future of individual locations remains uncertain, with some closing their doors permanently, such as the Fargo Chuck E. Cheese location in 2024.

Chuck E. Cheese filed for bankruptcy in 2020

The Bankruptcy Filing

In June 2020, as some states began lifting their pandemic lockdowns, Chuck E. Cheese's parent company, CEC Entertainment, filed for Chapter 11 bankruptcy protection. The company cited the financial strain of the COVID-19 pandemic as a key factor, with an estimated debt of $1-2 billion. CEC Entertainment was able to exit bankruptcy within months, shedding about $705 million in debt and installing new leadership.

Post-Bankruptcy Changes

Under the leadership of CEO Dave McKillips, who joined the company in January 2020, Chuck E. Cheese has undergone significant changes to adapt to modern trends and appeal to a new generation of children and their parents. Some of the most notable changes include:

• Elimination of Animatronics: Chuck E. Cheese retired its iconic animatronic band and other animatronic features, recognizing that kids today engage with entertainment through screens and short-form content.
• Introduction of Trampolines: The company introduced kid-sized trampolines in 450 locations as of December 2024, recognizing the growth of activity-based entertainment businesses.
• Menu Upgrades: Chuck E. Cheese upgraded its menu, offering scratch-made pizzas and forming partnerships with kid-friendly brands like Paw Patrol, Marvel, and Nickelodeon for its games.
• Mobile App: The company launched a mobile app, replacing physical tickets and modernizing the customer experience.
• JumboTrons: Floor-to-ceiling JumboTrons were installed, replacing the old SkyTube tunnels and creating a more immersive experience.

Financial Performance

CEC Entertainment, which includes other brands such as Pasqually's Pizza & Wings and Peter Piper Pizza, has seen positive financial results following these changes. The company achieved eight straight months of same-store sales growth and is no longer in debt. Its annual revenue grew from $912 million in 2019 to roughly $1.2 billion in 2023, despite having fewer locations.

Challenges and Future Plans

While Chuck E. Cheese has made a successful comeback, sustaining this growth won't be easy. The company faces the challenge of attracting consumers who are eating out less due to rising costs and capturing the attention of children and parents in a fragmented media market.

To address these challenges, Chuck E. Cheese introduced a subscription program offering unlimited visits and discounts. The program has been well-received, with a significant increase in pass sales from 2023 to 2024. Additionally, the company is exploring entertainment partnerships to expand its reach beyond the walls of its restaurants, including licensing deals, a potential game show, and a dream of a feature film starring the mouse mascot.

The company has closed over 30 locations since 2012

Chuck E. Cheese has been a staple of childhoods since Atari founder Nolan Bushnell opened its first location in 1977 in San Jose. The chain has become known for its pizza, birthday parties, and animatronic mouse mascot and band. However, the company has faced financial troubles in recent years, with a particular decline since 2012. As a result, Chuck E. Cheese has closed over 30 locations since 2012, with a total of 470 US locations currently, down from 537 in 2019.

The financial decline of Chuck E. Cheese can be attributed to several factors. One reason is the rise of digital entertainment, such as iPads and smartphones, which has made it challenging to entertain children and their paying parents. Additionally, the company has struggled to adapt to changing consumer habits and preferences. Despite efforts to rebrand and appeal to a wider audience, including adults, these efforts did not significantly impact restaurant sales.

To address the financial decline and changing market conditions, Chuck E. Cheese's parent company, CEC Entertainment, filed for Chapter 11 bankruptcy protection in June 2020. The company emerged from bankruptcy with new leadership and freed from about $705 million in debt. CEC Entertainment also includes other brands such as Pasqually's Pizza & Wings and Peter Piper Pizza.

Under the leadership of CEO Dave McKillips, a former Six Flags executive, Chuck E. Cheese has undergone a dramatic makeover to introduce its games and pizza to a new generation. This has included significant changes such as the elimination of animatronics, the introduction of trampolines, a retooled pizza recipe, and a mobile app. The company has also formed partnerships with kid-friendly brands like Paw Patrol, Marvel, and Nickelodeon for its games.

The investments and changes implemented by Chuck E. Cheese's leadership appear to be paying off. CEC Entertainment has seen eight straight months of same-store sales growth and is no longer in debt. The company's annual revenue grew from $912 million in 2019 to roughly $1.2 billion in 2023, according to Reuters. This growth is particularly notable given the decrease in the number of open Chuck E. Cheese locations.

The Columbus, Indiana location closed in 2024

Chuck E. Cheese has been a staple of childhoods across the nation since Atari founder Nolan Bushnell opened its first location in 1977 in San Jose. The chain has become known for its pizza, birthday parties, and animatronic mouse mascot and band. However, in recent years, the company has faced financial troubles, with a particular decline since 2012.

Despite efforts to rebrand and appeal to a wider audience, including adults, by adding items such as cold-cut sandwiches, chicken wings, and alcoholic beverages to the menu, sales did not see a significant increase. The company also closed over 30 locations between 2012 and 2019.

In June 2020, the situation worsened as the COVID-19 pandemic and social distancing restrictions prevented parents from bringing their children to franchise locations. This led to Chuck E. Cheese's parent company, CEC Entertainment, filing for Chapter 11 bankruptcy protection. The company emerged from bankruptcy with new leadership and freed from about $705 million in debt.

As part of its recovery strategy, CEC Entertainment invested over $300 million in recent years to adapt to the challenges of entertaining children in the age of iPads and smartphones. This included introducing trampolines, a mobile app, and floor-to-ceiling JumboTrons to replace the animatronics, SkyTube tunnels, and physical tickets of the past.

Unfortunately, the Columbus, Indiana location was not spared in the wave of closures. The local Chuck E. Cheese, located at 1455 N. National Road, permanently closed its doors at 8 p.m. on Sunday, with employees being notified of the pending closure just a month prior. This particular franchise began advertising for employees in 2005, but its history remains unclear.

With the closure of the Columbus location, Chuck E. Cheese says goodbye to yet another piece of its presence in Indiana, as it continues to navigate the challenging landscape of children's entertainment in an increasingly digital world.

Chuck E. Cheese has introduced a subscription service

Chuck E. Cheese has not permanently closed but it did file for Chapter 11 bankruptcy protection in June 2020 due to the COVID-19 pandemic. The company emerged from bankruptcy months later with new leadership and freed from about $705 million in debt.

In 2025, Chuck E. Cheese introduced a subscription service and overhauled its menu. The subscription service offers unlimited visits and discounts on food, drinks, and games. The subscription starts at $7.99 a month, with additional tiers at $11.99 and $29.99 that offer steeper discounts and more games. The company has also introduced trampolines (which cost extra) and removed the animatronic band.

The subscription service is part of a dramatic makeover to introduce its games and pizza to a new generation. The company has spent more than $300 million in recent years on this initiative, and it has started to pay off. CEC Entertainment, the parent company of Chuck E. Cheese, has seen eight straight months of same-store sales growth and is no longer in debt, according to CEO Dave McKillips. The company's annual revenue grew from $912 million in 2019 to roughly $1.2 billion in 2023, according to Reuters.

The subscription service has been well-received by customers, with the company selling close to 400,000 passes in 2024, up from 79,000 passes in 2023. The company has also sold more than 100,000 12-month memberships. The success of the subscription service and the company's recent growth are promising signs for the future of Chuck E. Cheese.

The company has removed animatronics from its restaurants

Chuck E. Cheese has undergone a dramatic makeover to introduce its games and pizza to a new generation. The company has spent over $300 million in recent years to entertain the newest generation, with the biggest changes including the elimination of animatronics, the introduction of trampolines, a retooling of its pizza recipe, and the launch of a subscription service.

Since its first location opened in 1977 in San Jose, Chuck E. Cheese has become a staple of many childhoods, known for its pizza, birthday parties, and animatronic mouse mascot and band. However, in recent years, the company has faced the challenge of figuring out how to entertain children and their parents in the age of iPads and smartphones. As CEO Dave McKillips explained, "kids were consuming entertainment in such a different way, you know, growing up with screens and ever-changing bite-sized entertainment."

As a result, the company made the controversial decision to remove the iconic animatronics from its restaurants. This decision was not made lightly, as the animatronics were a beloved part of the Chuck E. Cheese experience for many. However, the company felt that it was necessary to evolve and stay relevant in a rapidly changing entertainment landscape.

The removal of the animatronics is part of a larger effort by Chuck E. Cheese to rebrand and modernise its image. The company has also upgraded its menu, introducing scratch-made pizzas, and formed partnerships with kid-friendly brands like Paw Patrol, Marvel, and Nickelodeon for its games. Additionally, they have introduced trampolines, which have become a popular feature at 450 locations.

While some may mourn the loss of the animatronics, Chuck E. Cheese's efforts appear to be paying off. The company has seen eight straight months of same-store sales growth and is no longer in debt. This suggests that the company has successfully adapted to the changing preferences of its customers and found a way to stay relevant in a competitive market.

Frequently asked questions