Scott Drake, President and CEO of CEC Entertainment, is putting kids’ birthday parties at the center of his strategy to grow Chuck E. Cheese, saying in an interview published June 18 by Pizza Marketplace that birthdays, memberships, and active play are the company’s biggest opportunities to drive future growth.

Drake took over as CEO in February, succeeding longtime chief David McKillips. He previously served as the company’s chief financial officer, where he helped restructure the company’s finances and position it for expansion. Now he wants to make Chuck E. Cheese the first place parents think of when planning a child’s birthday celebration.

That is already a massive business for the chain. Chuck E. Cheese hosts more than 500,000 birthday parties each year, more than any other indoor family entertainment venue in the United States. The company proudly brands itself as the “Birthday Capital of the Universe,” and Drake believes there is significant room to grow that business even further.

Technology is a major part of the plan. Drake said the company’s AI chatbot has already assisted roughly 440,000 guests, answering questions, helping families explore menu options, and guiding parents through the birthday booking process. The same technology will soon power a multilingual phone system capable of answering calls and booking parties around the clock without wait times.

The goal, Drake explained, is not simply to reduce labor costs but to capture bookings the moment families decide to celebrate. If a parent cannot reach someone on a busy weekend and books elsewhere, that opportunity is gone.

The company is also working to ensure Chuck E. Cheese appears prominently when parents ask AI chatbots for birthday party recommendations, reflecting a growing focus on AI-driven search and what marketers call answer-engine optimization.

Birthdays are only one part of Drake’s broader strategy.

The company’s Fun Pass membership program, introduced in May 2024, has changed how many families use Chuck E. Cheese. Drake said more than 400,000 subscriptions were sold within months of launch, eventually leading to the rollout of an annual membership. Today, more than 500,000 families have purchased some version of the program, with many now visiting regularly instead of only once a year. Memberships start at $7.99 per month, while the premium Gold tier offers discounts of up to 50% on food and beverages.

For the summer season, the company introduced its Summer Fun Pass, providing unlimited visits through Labor Day for as little as $54.99 in select markets.

Drake is also expanding the company’s investment in physical activity through a larger-format concept known as Adventure World. The first location opened in Arlington, Texas, featuring approximately 12,000 square feet of climbing attractions, sports activities, and interactive play designed to get children moving rather than sitting in front of screens. Drake said the concept has generated strong customer satisfaction while complementing the company’s traditional Fun Center locations.

Supporting these investments is a financial turnaround years in the making. The company has spent the past several years restructuring its balance sheet while investing more than $350 million to remodel and modernize nearly 500 locations. CEC Entertainment, which also owns Peter Piper Pizza, emerged from Chapter 11 bankruptcy after the pandemic and has steadily rebuilt its business.

Competition remains intense. Drake identified Dave & Buster’s along with a growing number of indoor adventure parks as key competitors but argued that Chuck E. Cheese maintains an advantage through its long-established brand, exclusive focus on younger children, and ability to operate multiple entertainment formats. He described the company’s philosophy as being “unapologetically kid-first.”

The company is also pursuing international growth, with plans to enter the United Kingdom while expanding into markets including Australia and Egypt. Drake said the company’s birthday-party model, family-friendly environment, and recognizable characters translate well internationally, while menus and attractions can be tailored to local tastes.

For families facing higher prices for dining and entertainment, Drake believes affordable memberships, value-focused birthday packages, and more activities under one roof will encourage repeat visits and strengthen customer loyalty as the company enters its next phase of growth.

JBizNews Desk | New York
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