Halloween haunted houses are a scary business proposition, operators say

The faint of heart should think twice before setting foot in a haunted house this Halloween. The same can be said for those considering running a haunted house.

“The barriers to entry are so much higher to get into the haunted house attraction world — rules, regulations and the cost of getting in, even what people consider entertainment,” says Billy Messina, co-creator of Netherworld, an attraction that makes people in Stone Mountain, Georgia, scared for almost thirty years. “A bunch of teenagers going ‘Boo!’ – that won’t fly anymore,” Messina told CBS MoneyWatch.

Unlike the haunted house fundraisers organized by community organizations such as the United States Junior Chamber, also known as the Jaycees, Netherworld is among dozens of haunted houses that can be compared to large-scale Broadway productions. And unlike the community center haunted by volunteers, these Halloween attractions are professional outfits that are staffed year-round, even though the chance of making a profit is much smaller just a month or two around Halloween.

“Our revenue cycle is very short, with the lion’s share of our revenue coming within two to three months,” said Chris Stafford, CEO and founder of Thirteenth Floor Entertain Group. Based in Denver, Colorado, Thirteenth Floor operates 32 attractions, including haunted houses and Halloween festivals across the country, selling hundreds of thousands of tickets each year.

“We own most of our properties year-round, so we have an annual operating plan to ensure the revenue we expect comes in,” says Stafford, who worked in the banking industry for 12 years before turning into his changed. turned a beloved hobby into a full-time career.

“It’s a tough business with a workforce and a year-round mortgage, and then you have 20 to 30 days to make sure you can cover all those basic expenses. It’s a challenge,” said Messina, who started in the film industry as a makeup and special effects artist. Still, it’s “pretty amazing to be able to do this for a living,” he added.

Both share a childhood passion for haunted houses.

“I worked at a local haunted house with a friend from high school. I really loved everything about it, some of my best memories come from there,” says Stafford, recalling his experiences as a 15-year-old working with a family. – runs a haunted house in Denver.

Growing up in New York City, Messina remembers seeing commercials on television for haunted houses on the Jersey Shore and longing to go but not being able to go.

Like many other companies, Messina and Stafford view labor as a huge challenge.

With a full-time staff of around 15 employees, Netherworld also hires around 500 seasonal workers as parking attendants, food and customer service workers and of course, to scare people. “For new employees, the hiring campaign starts sometime in August, and doesn’t start until mid-September. We have students all the way up to white-collar professionals who just want to be a part of it,” Messina says.

Netherworld’s base pay starts at $8.50 per hour. “People are not in it for the money and work as scare actors,” Messina said.

Thirteenth Floor has full-time staff in marketing and finance, and “then the season comes and we scale up and hire literally thousands of people to work – probably the biggest challenge is staffing such a large workforce in that short period of time” , Stafford offered. “Most of our fear actors are not professional actors, but are interested in learning,” he added of the positions that pay just above minimum wage.

A large percentage of seasonal workers return every year, both men say.

Ticket sales keep Netherworld running, and external factors such as weather and sports can have an impact beyond Messina’s control. “Rain is devastating to attendance, or if the (Atlanta) Braves are in the (National Baseball League) playoffs,” he gives as an example. “Concessions and the gift shop aren’t enough to keep the lights on. We’re not losing money on it, but it’s not a cash cow by any means,” Messina noted.

Both men cited Netflix as the main competitor. “Just getting people off the couch, that’s hard,” Messina said, adding that Thirteenth Floor aims to give people a reason to come together socially. “Too much of our lives is lived digitally, behind the screen,” he said.