Those with a weak heart should think twice before venturing into a haunted house on Halloween. The same can be said for anyone considering running a haunted house.
“There are very high barriers to entry into the haunted house attraction business, including rules and regulations and the cost of entering even something that people perceive as entertainment,” Netherworld Co., Ltd. said producer Billy Messina. He has been scaring people in Stone Mountain, Georgia for nearly 30 years. “A bunch of teenagers saying, ‘Boo!’ — that’s not going to fly anymore,” Messina told CBS MoneyWatch.
Unlike haunted house fundraisers run by civic groups such as the Junior Chamber of Commerce, also known as the Jaycees, Netherworld is one of more than a dozen haunted houses that can be likened to full-fledged Broadway productions . And unlike neighborhood houses that are haunted by volunteers, these Halloween attractions have a much shorter window to turn a profit, only a month or two before and after Halloween, but are specialized throughout the year. is staffed by staff.
“Our revenue cycle is very short, with the majority of our revenue being over a two- to three-month period,” said Chris Stafford, CEO and founding partner of Thirteenth Floor Entertainment Group. Based in Denver, Colorado, Thirteenth Floor operates 32 attractions across the U.S., including haunted houses and Halloween festivals, and sells hundreds of thousands of tickets each year.
“Most of our properties are held year-round, so we have annual operating plans in place to ensure we receive the expected returns,” Stafford said. He worked in the banking industry for 12 years before switching to banking. From a favorite hobby to a full-time career.
“It’s a lot of work because you have staff, you have a mortgage that’s outstanding all year, and it takes 20 to 30 days to cover all your basic expenses. It’s a challenge,” said Messina, who started the business. spoke. Worked in the film industry as a makeup and special effects artist. Still, he added, “Being able to do this for a living is pretty amazing.”
They both share a passion for haunted houses that started as children.
“I worked at a local haunted house with a friend from high school and I absolutely loved every minute of it. Some of my best memories are from there,” Stafford said when he was 15 years old. He spoke while recalling his experience working with his family. -Runs a haunted house in Denver.
Messina, who grew up in New York City, remembers seeing commercials for Jersey Shore haunted houses on TV and dreaming of going, but never being able to go.
Like many other companies, Messina and Stafford cite workforce as a major challenge.
Netherworld has about 15 full-time staff members and also employs about 500 seasonal workers as parking attendants, food and customer service employees, and, of course, to scare people. “We start hiring new employees in August and really start in mid-September. We have students from college students to white-collar professionals who just want to get involved,” Messina said. said.
Base pay at Netherworld starts at $8.50 per hour. “People don’t work as fear actors for money,” Messina said.
The 13th floor has full-time marketing and finance staff, and says, “Then the season comes and we hire literally thousands of people to ramp up our operations. Perhaps the biggest challenge is that in that short period of time, It’s about having such a large workforce.” Stafford. “Most of our horror actors are not professional actors, but are interested in learning,” he added of the positions that pay just above minimum wage.
The majority of seasonal workers return each year, they said.
Ticket sales keep the Netherworld afloat, but external factors such as weather and sports can have an impact beyond Messina’s control. “Rain is devastating for the crowd, or if the (Atlanta) Braves are in the (National Baseball League) playoffs,” he cites as an example. “Concessions and gift shops aren’t enough to keep the lights on. We don’t lose money on things like that, but we’re definitely not a cash cow,” Messina noted.
Both men cited Netflix as a major competitor. “It’s just getting people off the couch, which is difficult,” Messina said, adding that 13th Floor strives to give people a reason to come together socially. “So much of our lives are lived digitally behind a screen,” he says.