Business Insight Children's Soft Play Centre

Soft play centres provide indoor playground equipment, such as slides and tubes, suspended nets and soft play for children up to 11 years old while supervised by a responsible adult.

Some smaller centres only provide equipment for children under school age while others also provide sensory equipment.

Here we provide information about starting up and running a soft play centre. We describe the current market trends and the key trading issues.

Key market issues and trends

Current market issues affecting start-up and established children's soft play centres include the following:

• The Government has been criticised for failing to help the indoor play industry with energy bills. Following the 2023 Spring Budget, the Association of Indoor Play (AIP) warned of a sharp rise in centres reducing their opening hours and described closures as inevitable. It also revealed that 21% of centres were still paying post-pandemic rent arrears.

• Indoor play centres have been recognised by the Government and parents as being of benefit to children's social and physical development and mental health. According to the AIP, there are around 60 million child visits to soft play centres annually to participate in a range of activities such as baby sensory, free play, role play, pre-school music, fitness, language and art classes.

• There are opportunities for centres to provide sessions for children with special educational needs and disabilities (SEND). Ofsted estimates that there are around 1.4 million children in England that have a special need or disability.

Start-up and established soft play centres face the following trading, commercial and legal issues:

Health and safety

Soft play centres have a duty of care towards their employees and anyone else who may be affected by their business activities, including children attending the play centre.

Soft play centres must carry out a risk assessment to identify potential risks to children and take steps to remove or minimise these risks.

Rules of play

Most soft play centres have 'rules of play' which must be followed by everyone attending the centre.

Typical rules of play include the following:

• All children must be accompanied by a responsible adult, who must remain on the premises at all times.

• Age and height restrictions must be observed in relation to play areas and equipment.

• Jewellery and shoes must be removed before climbing on play equipment and socks must be worn.

• Restrictions on photography; for example, some centres only allow adults to photograph their own children, while others prohibit photography altogether.

Premises

Typically, a small soft play centre for pre-school children will require a two-level soft adventure play structure with up to 4 metres of clear height or a three-level play structure with up to 6 metres of clear height. Indoor play centres will typically cost £120,000 to set up a 5,000 square foot unit and £240,000 to set up a 10,000 square foot unit.

Soft play centres are often available to buy on a freehold or leasehold basis. Depending on location, prices start from around £60,000 to £150,000 leasehold and around £500,000 freehold.

Change-of-use planning permission will be required if the premises were previously used other than as a soft play centre or for similar purposes. Most soft play equipment suppliers provide help with permissions as part of their design and installation service. Alternatively, the local authority planning department in the area where the premises are located should be consulted for advice about whether planning permission is needed.

Equipment inspections and checks

All play systems and equipment should have a post-installation inspection and annual inspections to ensure the equipment is safe.

It is also advised that soft play centres should carry out daily visual checks of play systems and equipment and stay up to date with any manufacturers' recalls or safety notices.

Post-installation inspections cost approximately £415 each (excluding VAT) and include training for soft play centres on how to carry out basic 'walk around' checks.

The majority of play system and equipment suppliers provide aftercare services that include annual inspections.

Pricing and VAT

The typical entry fee charged by soft play centres is between £5 and £12 depending on the time and date of the visit and the age of the child.

Some soft play centres provide party packages, which range from £10 to £15 per child depending on the number of children and whether a birthday cake and party bags are provided.

Soft play (including food and drink sales) is standard-rated for VAT and centres must register for VAT once their turnover reaches the mandatory threshold.

Contact Ashored for help and support with your business.