Who Owns Chuck E. Cheese? A Look At The Company's Ownership

Chuck E. Cheese, the American entertainment restaurant chain, has had a few different owners since its founding in 1977. The company was first known as Chuck E. Cheese's Pizza Time Theatre and was founded by Nolan Bushnell, the co-founder of Atari. In 1985, after facing bankruptcy, the chain was acquired by Brock Hotel Corporation, the parent company of competitor ShowBiz Pizza Place. This merger formed a new parent company, ShowBiz Pizza Time, Inc. In 1998, the parent company became CEC Entertainment, Inc. and in 2014, CEC Entertainment was acquired by Apollo Global Management. In 2020, CEC Entertainment filed for Chapter 11 bankruptcy protection and emerged from bankruptcy under the ownership of its lenders, led by Monarch Alternative Capital.

The company filed for bankruptcy in 2020

In 2020, the company that owned Chuck E. Cheese, CEC Entertainment, filed for Chapter 11 bankruptcy protection. The filing occurred in June 2020, as some states began lifting their pandemic lockdowns. The COVID-19 pandemic had been financially damaging to CEC Entertainment, with the company accumulating an estimated $1–2 billion in debt.

CEC Entertainment's bankruptcy filing revealed that the company remained profitable until March 16, 2020, when it had to temporarily suspend the operations of its brands. Despite cutting expenses, seeking rent concessions from landlords, and ramping up its pizza delivery business, the company was still millions of dollars in debt.

The company's financial troubles were not unique, as many other popular companies also filed for bankruptcy in 2020 due to the impact of the pandemic. According to data from the Federal Reserve Board of Governors, more than 700,000 establishments closed in the second quarter of 2020, resulting in roughly 3 million job losses.

CEC Entertainment emerged from bankruptcy in December 2020, with new leadership and freed from about $705 million in debt. The company has since been on the road to recovery, with CEO Dave McKillips implementing various changes to entertain a new generation of children and their parents. These changes include introducing trampolines, retooling the pizza recipe, and eliminating animatronics.

CEC Entertainment owns Chuck E. Cheese

CEC Entertainment has been working to revitalise the Chuck E. Cheese brand and introduce it to a new generation. Under the leadership of CEO Dave McKillips, the company has invested over $300 million in re-imagining its stores, removing animatronics, and introducing trampolines, mobile apps, and floor-to-ceiling JumboTrons. The company has also formed partnerships with popular children's brands like Paw Patrol, Marvel, and Nickelodeon.

CEC Entertainment's efforts appear to be paying off, with eight straight months of same-store sales growth and a revenue increase from $912 million in 2019 to approximately $1.2 billion in 2023, according to Reuters. As of 2024, CEC Entertainment owns and operates approximately 465 Chuck E. Cheese locations in the United States and Canada, with 96 franchised locations worldwide.

CEC Entertainment, Inc. was previously known as ShowBiz Pizza Time, Inc. and was founded in 1985 through the merger of rival pizza chains Chuck E. Cheese's Pizza Time Theatre and ShowBiz Pizza Place. The company changed its name to CEC Entertainment, Inc. in 1998 to reflect the remaining chain brand, Chuck E. Cheese. Over the years, CEC Entertainment has expanded its portfolio by acquiring additional family restaurant properties, including Peter Piper Pizza and Discovery Zone locations.

The company has spent \$300 million on remodelling

CEC Entertainment, the parent company of Chuck E. Cheese, has spent over $300 million on remodelling its stores to appeal to a new generation of children and their parents. The company filed for Chapter 11 bankruptcy in 2020 and has since undergone a dramatic makeover, introducing new games and entertainment features.

The $300 million investment has been spent on a range of upgrades, including new arcade, sports and kid-focused games, updated technology, and operational innovations. The company has also introduced a new membership program with different tiers, offering unlimited visits and discounts.

One of the most significant changes in the remodelling process has been the removal of the iconic animatronics, which have been replaced by a live stage and dance floor for costumed characters. This decision sparked controversy among fans, with many petitions created to stop the change. However, CEO Dave McKillips explained that children today consume entertainment differently, with screens and bite-sized entertainment, making the shift necessary.

The restaurants have also been physically transformed, with new carpet, booths, and wall art. The exterior design has also been updated, featuring different coloured squares, red diamonds, and awnings. Additionally, the logo and wordmark have been modified, reflecting the change from Chuck E. Cheese's to just Chuck E. Cheese.

The company has also focused on improving guest experience through technology innovations. They have introduced Play Pass and Play Bands, a tap-to-play game card system that replaces traditional tokens, providing a more convenient and cleaner way to play. E-tickets have replaced paper tickets, offering a contactless and eco-friendly alternative, and touchless payment options are now available.

The remodelling process has been completed in nearly half of the Chuck E. Cheese locations across 35 states, with the brand on track to remodel another 100 locations in 2023. The changes have been well-received, with the company experiencing eight straight months of same-store sales growth and positive feedback from customers.

The company has introduced a subscription programme

Chuck E. Cheese is an American entertainment restaurant chain founded in 1977 by Atari, Inc.'s co-founder Nolan Bushnell. The chain is currently owned by CEC Entertainment, which also owns Pasqually's Pizza & Wings and Peter Piper Pizza.

In 2024, CEC Entertainment introduced a subscription programme called the Fun Pass. The programme offers families unlimited visits, daily gameplay, exclusive discounts, and surprise offers. There are two options: a two-month pass or a monthly plan. The monthly plan, or gold tier, requires a 12-month commitment.

The Fun Pass has three tiers: Bronze, Silver, and Gold. The Bronze tier costs $7.99 per month and includes 40 games per day, 20% off food and drink, and 20% extra games. The Silver tier costs $11.99 per month and includes 100 games per day, 30% off food and drink, and 30% extra games. The Gold tier costs $29.99 per month and includes 250 games per day, 50% off food and drink, and 50% extra games. Each tier includes Play Pass cards for up to six family members and surprise bonus gifts.

The Fun Pass was created to make Chuck E. Cheese more affordable for families, according to Mark Kupferman, executive vice president of Chuck E. Cheese. "Amid rising costs, our goal was to offer great value, and develop an easy, and fun solution for everyone," he said. The subscription programme was introduced at a time when the company was facing financial challenges due to the COVID-19 pandemic and needed to find ways to appeal to consumers.

The company has removed animatronics from its restaurants

Chuck E. Cheese is owned by CEC Entertainment, which also includes Pasqually's Pizza & Wings and Peter Piper Pizza. In 2020, CEC Entertainment filed for Chapter 11 bankruptcy protection, emerging from bankruptcy months later with new leadership and freed from about $705 million in debt.

The company has since undergone a dramatic makeover, spending over $300 million to entertain a new generation. As part of this, the company has removed animatronics from its restaurants.

The removal of the animatronics was a controversial decision. The animatronic band, Munch's Make Believe Band, had been a staple of Chuck E. Cheese for four decades and was part of the childhoods of several generations. However, CEO David McKillips explained that the decision was made because "kids are consuming entertainment differently than they were 10, 20 years ago... kids, really of all ages, are consuming their entertainment on a screen."

The company has replaced the animatronics with giant TV screens, digital dance floors, and trampoline gyms. This new technology is part of the company's efforts to modernise and appeal to a younger audience. In addition to these changes, the company has also upgraded its menu, partnering with Kidz Bop, and collaborated with other kid-friendly brands like Paw Patrol, Marvel, and Nickelodeon for its games.

While most locations have removed the animatronics, a few stores will retain them due to public outcry. These locations include Northridge, California, and Nanuet, New York, which will keep their animatronic bands, and Pineville, Hicksville, and Springfield, which will keep other types of animatronics.

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