Episode 55 - Operator Spotlight: Quarters SLC

Quarter Drop operator Mike discusses running arcade bars in Utah's regulated environment across two SLC locations.

Synopsis

Alan and Alex from Wedgehead A Pinball Podcast interview Mike, owner of Quarter Drop Arcade in Salt Lake City, which operates two locations. They discuss the challenges of running arcade bars: combining difficult bar operations with arcade management: navigating Utah's strict alcohol regulations, the naming origin of Quarter Drop, managing two close locations, revenue splits between games/bar/food, and how customer expectations shape business identity.

Highlights

• Quarter Drop took three years from conception to opening in early 2018
• Quarter Drop downtown location generates 80% revenue from alcohol, 20% from games, ~1% from food
• Sugar House location (2 miles from downtown) generates ~75% from bar, ~20% from games, ~5% from food
• The two Quarter Drop locations cannibalize each other due to proximity, with downtown dominating
• Utah requires all spirits to be metered through a 'Berg' measuring device for auditing purposes
• Utah state conducted alcohol audit on Quarter Drop two days before this podcast episode
• Utah law prohibits two drinks with the same base spirit being served simultaneously
• Utah liquor laws became more lenient after hosting the 2002 Winter Olympics
• Opening a second location succeeded operationally but the Sugar House location doesn't make significant profit

Entities

• Electric Bat Arcade· company
• OneUp Arcade· company
• Quarter Drop Arcade· company
• Stern Pinball· company
• Wedgehead· company
• 2002 Winter Olympics· event
• Oregon Liquor Control Commission (OLCC)· organization
• Rain City Free Play· organization
• Utah (state)· organization
• Wedgehead Pinball Podcast· organization
• Alan· person
• Alex· person
• Craig· person
• Gary Stern· person
• Holden· person
• Mike· person
• Scott· person