Chuck E. Cheese was founded by Nolan Bushnell in 1977. Chuck E. Cheese is being operated by CEC entertainment which is a brand of family entertainment.
With its inception, the primary focus on menu become pizza along with entertainment focus of arcade games, and it provides a complete family fun with games and delicious food in all their restaurants. Apart from pizza, the restaurant also serves salads, sandwiches and desserts.
Chuck E. Cheese has majority of company-owned stores and few franchised owned stores. The major part of revenue comes from company-owned stores. At the end of 2015, Chuck E. Cheese had 592 stores with locations in 47 states and 12 foreign countries, in which 524 are domestic company-owned stores, 29 are domestic franchise-owned and 39 are International franchise stores. In October 16, 2014, it completely acquired Peter Piper Pizza which was a leading pizza and entertainment restaurant chain based out of Arizona.
In 2015, the average annual sales per store were 1.56 million US dollars. The food and beverage sales accounted to 44% of the total revenue of CEC entertainment with a growth of 14% in 2015 over 2014. The store operating costs amounted to $710 million in 2015 with labor expenses of 250 million US dollars. According to Nielsen Scarborough research, during the spring of 2015, 5.27 million people has visited the store within 30 days. In order to penetrate into new markets, Chuck E. Cheese expanding its restaurants by opening franchise stores with a target of 90% of total system-wide stores should be franchise-owned stores. Apart from opening franchise store, Chuck E. Cheese also has plans to acquire franchise store at some strategic markets.