Chuck E. Cheese’s Melissa McLeanas On Becoming A Media Network For Families The Current podcast

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Chuck E. Cheese’s Melissa McLeanas on becoming a media network for families

4d ago 28:44

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Chuck E. Cheese's Melissa McLeanas joins hosts Damian Fowler and Ilyse Liffreing on The Current Podcast to discuss how Chuck E. Cheese is leveraging its iconic IP for the streaming era, what advertisers are excited about and more.

Episode Transcript

Please note, this transcript may contain minor inconsistencies compared to the episode audio.

Damian Fowler (00:00):

I'm Damian Fowler

Ilyse Liffreing (00:01):

And I'm Ilyse Liffreing,

Damian Fowler (00:02):

And welcome to this edition of The Current Podcast.

Ilyse Liffreing (00:09):

This week we're thrilled to be joined by Melissa McLeanas, Vice President of Global Media Licensing and Entertainment at Chuck E. Cheese.

Damian Fowler (00:18):

For people who grew up in the us, Chuck E. Cheese means childhood birthday parties. It's long been a go-to destination for pizza games and the giant mouse that knows every kid's name.

Ilyse Liffreing (00:29):

In short, it's a pop culture icon with over 500 worldwide venues. But under Melissa's leadership, the brand is leveling up by launching the CEC Media Network in partnership with programmatic platform future. Today,

Damian Fowler (00:42):

It's a big move that signals a shift from just a physical play space to a full on entertainment platform, think digital storytelling in store screens, branded content and advertising that actually fits into the family experience.

Ilyse Liffreing (00:57):

We're going to jump in and talk about why in venue media might just be the next big driver of customer loyalty and growth.

Damian Fowler (01:07):

Chuck E. Cheese is such a nostalgic brand, especially in the United States, but here you are launching a full media network, which is a kind of big new chapter for you. Can you walk us through the vision and the strategy behind the CEC Media network and what is bringing it to life?

Melissa McLeanas (01:26):

Absolutely. First of all, thank you so much for having me. It is an incredibly exciting time at CEC Entertainment. Then Chuck Cheese, I would say it's a bold new chapter for the company and the Media network is really just a piece of that. The brand has been going through an incredible transformation over the last few years, and really at the heart of that is the vision to establish this brand as a global leader in entertainment. Now, I say that, but it's really reestablished the brand in entertainment. Chuck E. Cheese was born in entertainment. I don't know if you know, but the E in Chuck E. Cheese stands for entertainment. And really when you think back to where we started, we were a leader and really established the category of EAT entertainment. And as that space has evolved and family entertainment centers have really taken that center stage, we've continued to be a leader and an innovator in that space.

(02:14):

But a few years ago, I would say we probably hit a wall and it was a little bit tired. The bones were good as they would say, but it was really time for a reset and bringing a new leadership team to the forefront with a new background and experience in entertainment. We established several different strategic objectives, one of them being the division that I lead, and that's media licensing and entertainment. So really very simply put, the mission is to really drive incremental value and revenue for the company in a new way. So all US locations, we've invested over 350 million back into the business, a capital investment, and I'm happy to say that right now at this point we've completed the US all US locations, so just under 500, no small feat, and we're about to finish our own Canada locations as well. And what this looks like is cosmetically update to the interior and the exterior, a revamp of menu, all new games, and that entertainment package now features a large video wall. And then of course our character program.

Damian Fowler (03:16):

That's a lot right there. It's almost like you've had a complete perception shift in terms of what you're doing. It sounds like you are a channel in and of your own right and media channel. You mentioned out of home, but there's also CTV on all those points. This is a kind of multistream content strategy. And could you just talk a little bit more about how that will ultimately reach all of these consumers and how it'll deepen engagement, I guess, for families who go to all these different venues in the US and around the world?

Melissa McLeanas (03:50):

So yeah, that's a great point. So I guess let me step back and actually talk about what that content looks like. Within our fund centers, we have entertainment programming, let's call it a 90 minute loop, and it consists primarily of entertainment, content, family friendly entertainment content. Of all these initiatives, obviously the first and foremost most important thing for us is to make sure that we're delivering an amazing experience for our guests. And so that content must do that. It has to be relevant for our families, it has to be engaging, and it really has to convey everything that our brand stands for. So that's a mix of our own original content. So I talked about that, the library. And so we continue to create new content and then we pull from our library of content. So we really look for things that are a little young, but it has to be appealing to an older guest.

(04:37):

At the same time, there can be aspirational content, so maybe some of our 10 year olds and 12 year olds are there with younger siblings, and then you got your parents. So there's a lot of opportunity there. The other thing that digital screens in this update to programming does is it allows us to do regular seasonal updates. And I think that's also really important, especially as we're growing programs like our membership program, our past program, we've got some repeat visitation, we're consistently updating and keeping that fresh throughout the year. Now as part of that, there's a lot of partner opportunities. And so for our entertainment partners, like I said, you can get the latest clips from your newest release for some of the newer content creators. We've got an active captive audience sitting right there paying attention to those screens, and we've created an environment where they're tuning into those screens. And so bringing our characters, since we do all of that content ourselves and working with other content creators to create some co-branded content, there's a lot of different ways for partners to really be a part of that entertainment experience.

Ilyse Liffreing (05:38):

Now I know it's early days too, but perhaps you can talk about some of those partnerships that you have going on with needy buyers and national advertisers and then how important the media network is to Chuck E. Cheese's broader business evolution.

Melissa McLeanas (05:54):

Absolutely. I'll actually take that moment to do a quick and talk more specifically on the advertising opportunity. I think a lot of what we're doing with the content and the characters is incredibly exciting, but it's also a really exciting time in the digital out of home and out of home space. So if you look at other venue operators and retailers, they're debuting these owned media networks. And so we've really took a page out of their book and we said, Hey, we've got this updated experience, we have this traffic. How do we really bring this to partners in a big way? And so on the, I would say the tech solutions side, we've had some really strong relationships with Panasonic so that we've got media players in advertising solutions that are going to support the various types of advertisers locally, regionally, nationally. And then we most recently have a relationship with Vista Media, so we were able to integrate their supply side platform directly into that CMS.

(06:44):

So that gives us access to a wide array of advertisers, and they're coming straight through programmatic, so turnkey solution for those who are buying programmatic space. So we're seeing a lot of advertisers come through there. And then we've got some more strategic relationships in the entertainment space. Kids BOP is one of those. They've been a partner for many, many years. And in addition to some of the entertainment content, they've really leveraged these screens to advertise tours to localize and talk specifically to upcoming tours at a specific venue ahead of that. We've worked with the Harlem Globetrotters to do the same, and then we have a various CPG toy, again, family appropriate, parent appropriate that are really taking advantage of those screens. And then of course we're talking out of home, but I don't want to forget too that we also announced a partnership with Future Today.

(07:33):

And so in addition to having this opportunity around content in our venues, we also have this content online. So we've had a lot of this on YouTube and YouTube kids. We actually started putting our content there in 2012 and have been doing so in a more meaningful way in the past few years. And with this new relationship with Future Today, a leader in the CTV space, not only are we getting content on their Happy Kids channel and their network alongside the co melons and the Paw trolls, but in the future we're working towards launching our own streaming network. So Chuck E. Cheese branded Fast Channel, so ad supported, but again, leaning into the content and the IP and engaging those guests and those fans and then offering that opportunity to brand safe and family friendly advertisers.

Ilyse Liffreing (08:17):

I know Chuck E. Cheese has traditionally been mostly about the physical experience before all of this. I remember going there as a kid, my dad brought us there all the time growing up, and obviously that part of the business is not dying down at all. I'm curious how many screens you have at each of the 500 plus venues that will be part of this network.

Melissa McLeanas (08:41):

So every location has a video wall, and that's going to be the focal point of when you walk into Chuck E. Cheese and it's incredibly important. You really can see that almost anywhere in most locations. Every one of our locations is unique, they're like children. They vary in size and layout, but really that video wall is huge. And then screens and the number of screens is going to depend on that layout and how big the location is. So it can be anywhere from six to 15 to 18 in some of our larger locations. So it's done strategically to make sure that there's visibility no matter where you are. And then audio isn't tied to those screens, so audio is just piped uniformly throughout the entire locations.

Ilyse Liffreing (09:21):

Besides those giant screens, are there any other ways you guys are blending that physical presence within the new digital touchpoints that you're bringing?

Melissa McLeanas (09:30):

So like I said, the character program is, I mean the epitome of the live physical experience. And so we really try to find a balance between how we take the digital parts of our brand and our entertainment and balance that with the interactive and the physical. So when the character, when Chucky comes out, whether it be for a birthday or for a dance, there's also supporting content on the screen that really help families follow along, be able to follow and interact with their parents and their friends and all of that. So we want to make sure it's on an interactive dance floor. So there's a lot of different ways to bring that to life. We also just recently launched a STEAM program, and so that is rooted in the media that you see on those screens, but then as part of that curriculum, those kids go off into the game rooms and they're playing with the games and they're doing all the different tasks that they've learned.

(10:21):

We did that in partnership with stem.org and then just digitally throughout the locations, our menu boards are all digital now. We've done some tremendous and deep upgrades in terms of innovation and technology, so no more tickets, which some people get sad about because that visual of having that bucket of tickets feels so iconic. But etickets are far more efficient for families that are trying to get through the price counter and out the door. So we've got Etic, we've got Play Pass, no more tokens, the menu boards, the games. We're really leaning into digital. It makes us more efficient when we need to make changes. We think about testing menu items in certain local and regional rollouts that's all supported digitally. It's far easier to make those updates on the backside than it is to roll out new point of sale and printed materials. And so we're looking for those digital opportunities throughout

Ilyse Liffreing (11:11):

Life. Things are certainly changing.

Damian Fowler (11:12):

They really are. Let's talk a little bit about some of the takeaways from all of these innovations. Now, let's say you're a family, you've been exposed to the video wall and the games room and you go home. How is this exposure being measured across the network, if you like?

Melissa McLeanas (11:28):

Yes, feedback is everything. We actually have a really active fan base and we do have guests who are reaching out to give us feedback. We have an in-house insights team and we have regular surveys, and then they're asking questions across every element of Chuck E. Cheese because we want to make sure that we're understanding as we update and introduce new exactly what's working, what's not and what can be better and happy to, the screens in the entertainment continues to have a really positive score. A very high guest are seeing it, they're tuning in and they love the entertainment. And so we'll continue to watch that. And when it comes to the advertising campaigns, from a measurement perspective, we're working with companies like Place their AI and an IMP purview to measure the impressions through our door as well as impressions against our screens, both being well-recognized auditors, if you will, in that space.

(12:20):

We don't sell tickets, so that's important to make sure that when we do these campaigns we can accurately say this is how many folks we're actually exposed to those screens. And then as we continue to work with our partners, and then I think this is something you'll see, especially in the digital out of home space, it's constantly evolving. And so for us it's really important to work with partners on their campaigns and understand those KPIs because we are a unique platform and the guests are engaging with these screens maybe differently than they might and screens out in a different venue. And so we want to make sure that the content that we're delivering, one, again, great guest experience and it's appropriate for our families, but two, it's achieving what our partners are looking to do with these campaigns.

Ilyse Liffreing (13:04):

So you've spoken about how Chuck E. Cheese as a brand spans generations. How do you ensure that the content and messaging then stay relevant to today's kids while still honoring the brand's legacy from the past?

Melissa McLeanas (13:18):

It's an amazing gift to have a brand and a character that has touched almost five decades, and that comes with great responsibility first and foremost, at the heart of what we are still, where a kid can be a kid. So as we continue to innovate and evolve for these families, we never lose sight of that. We are a kid first space. So while our content could be developed with co-viewing in mind and there's some Easter eggs that maybe parents will understand, but it's just fun silly songs for kids, we want to make sure that kids still own their space. Chuck E. Cheese is a place for kids. Our parents obviously need to enjoy their space too. And so in addition to how that content comes to life within our fund centers, we take a lot of opportunity to find extensions outside our four walls that pay homage to the rich legacy that this brand has.

(14:11):

So licensing is an important part of the strategic objective of growing this brand and increasing its value and entertainment. And so we've really grown our license program over the past five years. We've got just over 35 licensees and we've been able to really segment our brand across these decades and offer a classic Chuckie for those who know the OG seventies, eighties, Chuckie with the bowler hat. And we've got our retro Chuckie who's skater and he's the nineties, two thousands, and we offer that up to teen and young adult audiences in various spaces that make sense. We've done a few other things like we've saved our animatronics and in a few different locations, we started that in Northridge, California, wildly successful, lots of feedback there. And so we were able to extend that to four additional stores. And so those animatronics are going to live in those locations.

(15:02):

They're still fully remodeled, they're still on the media network, they still have all the new, but for fans that want to pilgrimage to see the original band in that format, those are available and we continue to look for opportunities like that. We've announced Chuck Arcade, it's an arcade space that's really geared towards Martine and adult, and there's some really fun touch points. Again, paying ho much to the legacy. And so we want to make sure that, again, our brand is a brand and we're going to take care of those kids and those families, but there's a lot of opportunity to really extend that and talk to the other generations of fans.

Ilyse Liffreing (15:36):

I certainly appreciate that. I remember Skater, Chuckie, myself, nineties

Melissa McLeanas (15:41):

Chucky, everybody has their Chuckie.

Ilyse Liffreing (15:42):

Oh yeah. I know it's early days still, but how has the feedback been so far from the brands that you guys are starting to approach about the network? Is there excitement, interest?

Melissa McLeanas (15:56):

I think a takeaway that is for brands and partners and even a lot of our guests is because just as you said, everyone has their Chuck E. Cheese and this is a brand that has such incredible awareness and strong attachment to a very specific memory and time of when you had your Chuck E. Cheese experience. As we're going through this remodel and introducing the median network, it's a bit of a surprise when they actually go in and they're like, oh my goodness, this is not the Chuck E. Cheese that I used to know. And we hear it from guests and it's why we really lean into reopening events when we remodel a location and then really make a splash in the local community. And I'm hearing that a lot from partners. It's incredibly positive once they see how their brand is coming to life on these screens and we're hosting lunch and learns with agencies, you have to see it to get it because that memory is so strong in so many people and we're doing things so differently. And so it's been really positive and it's been exciting, but it definitely is. It's a space where you've really got to lean in and say, oh, wait a second. You're right. This is incredible.

Damian Fowler (17:06):

We seem to be in a sort of almost, you mentioned the ip, but we seem to be in a bit of a golden age as it were, of brand storytelling and more and more brands leaning into sort of that owned media channel to tell their stories. How do you see this whole media network fitting into that general trend

Melissa McLeanas (17:23):

From a brand storytelling perspective? It's funny. We always make this differentiation. Our characters are part of our experience. We never look at them to tell the experience. And so as we debut all of these new channels for our content and open up to a larger audience, we have the opportunity to really dive into these characters, their personalities and invest in telling their story and in a deeper way. And so we've got so much content, but there's so many new formats that we are excited about long form formats, animation, publishing, and so much of that can be supported and come to life on these channels. But when we think about a storytelling opportunity from a character perspective, there's a great path forward to really get these beloved characters out there and to continue to build their world, their ecosystem, and not just in content. How do we take them outside the four walls? How do we create more experiences? We've taken the band out on tour, how do we do that in a bigger way? And I think these channels and this content is the beginning of a much bigger journey for the characters.

Damian Fowler (18:31):

Yeah, I imagine. Is there a movie in the works?

Melissa McLeanas (18:36):

No comment. No. In all serious, that's where we're going. That's where we're thinking for these characters. And so while nothing has been announced, I think we've been fairly vocal in the fact that that is what we would like to do and how we are making decisions on content and bringing on partners.

Ilyse Liffreing (18:55):

It's amazing. Looking even further ahead, if the movie doesn't happen, if the movie does happen

Melissa McLeanas (19:03):

When the movie happens,

Ilyse Liffreing (19:03):

When it happens,

Melissa McLeanas (19:04):

Exactly when the movie

Ilyse Liffreing (19:06):

Happens, I like it. It happens. What else do you see in terms of innovation, whether it's maybe gamified content, augmented reality, personalized experiences, is there anything else that you guys are hoping in the near future to evolve the Chuck E T's experience?

Melissa McLeanas (19:26):

Gaming is in our DNA. And so I mean we are the largest arcade operator in the world. We buy thousands and thousands of games. We've got 2 billion game plays a year. And so we're always looking and talking to different companies about how we can continue to innovate in that space. And so that's always on our radar. You've seen a change in even some of the games that have come through our doors, things like ar, you need to make sure that it's safe for our young kids, but we're always having those conversations and now that we've got more media driven experiences, there is opportunity to take that to the screens. And with the dance floor personalization, if you think about birthday and how important that is to our brand, personalization is something that we're always looking to do in a bigger way. So from tiering and offering different options to our parents who are booking parties, to giving something personal just to remind or say happy birthday to the kids and how we can do that with our characters and at scale is something that is starting to get more exciting as this technology evolves.

Ilyse Liffreing (20:34):

Amazing. Let's go into some of rapid fire questions now, some quick fun ones for you. So the first one here is actually about your background. You've held roles across licensing, entertainment and media. What would be one lesson from building these brand partnerships that served you especially well?

Melissa McLeanas (20:55):

Partnerships can be incredibly powerful and they can serve so many purposes. And I think right now in the industry, you're hearing the word collaboration a lot. And it's refreshing because I also think that if you look back a few decades, it was very rigid of this is the partnership, I need X, you get X, this is how we do it or we don't do it. And I think the openness and the receptiveness across all industries, entertainment, licensing, media of building something that is going to benefit both parties in a bigger way has really changed how a lot of these partnerships have come to life. And for us, and in this journey that we've been in, they've really been a huge benefit to us. And one telling our story, aligning with some of these best in class entertainment brands and putting Chuck E. Cheese in a conversation that frankly people weren't expecting. And as you said, I have been very fortunate to have worked with some amazing partners across my career and bring some of these different programs to life and building them around Chuck E. Cheese has been really fun.

Damian Fowler (22:02):

What other family or entertainment brand is doing something truly innovative in the media space that inspires you?

Melissa McLeanas (22:10):

So I'm a theme park nerd, admittedly because of my background, and this almost feels like a cop out, but it has been really exciting to watch Universal grow as a behemoth in this space and even their marketing and from a grassroots perspective of how they've been able to engage their fan base. It's just fun and it's exciting to watch someone in that space grow as they have. But all that said, what I think is even cooler in location-based entertainment is these snackable moments that are kind of emerging outside of these giant theme parks. I think in the beginning it was always like that can only happen if you're paying a high ticket price to go to a Universal or Disney. And now so many of the IP holders and the brands are bringing these really cool experiences to life outside of that, whether it be a mobile tour or a retail experience or maze that's themed for the season. And I think that's really elevating the space and it's giving a lot of us opportunity to activate in these ways that doesn't require a giant theme park build around it. And so I think that the location based entertainment and experiential space in general has been growing and being more creative over the past few years.

Ilyse Liffreing (23:22):

Do you have a favorite moment from launching the CEC Media network?

Melissa McLeanas (23:27):

I think something that I could really call out is the feedback from our operators. So when you work for a company that is really the life force is your field and your cast members and your operators on the ground. We've got some cast members and some managers that have been with us for over 30 years and they know this brand and they've been delivering this amazing experience and change is hard. So when this started testing in markets and we got not only good feedback, but outwardly positive feedback and managers were approaching me like, you know what you could do? I'm like, this is fantastic because not only are we updating the entertainment experience, we're delivering on all these new objectives, but we're bringing value to the team that's operating and they see this great opportunity to talk to their guests and to be more efficient. And so that was very satisfying and it made it all the better because they really are the ones that are doing the work on the ground and making sure that this brand is coming to the life in the best of ways.

Damian Fowler (24:27):

On that point, was there a personal moment that stands out that you've witnessed where the brand genuinely sort of moved you or surprised you in how it was being received?

Melissa McLeanas (24:38):

So yes, I mentioned this summer concert series, and I'll give you a little bit of context. So during the pandemic, we had to close a lot of locations and as we started to open them, we made the decision to keep Chucky outside the fun centers to our families. That message was that he was recording an album and we didn't realize that he was going to have to record a box set in the end, but when we did get to a place where we were getting comfortable to bring him back to our guests and it wasn't everywhere, we were trying to think of how best to do that. And again, this is still early for me and in my role at Chuck E. Cheese. And so we decided to, for the first time ever, create a fully choreographed scripted show, 30 minute show with our characters, took 'em out on the road, all free concerts, open air outside public parks so all guests could attend no matter where we were in the world in terms of what those restrictions looked like.

(25:33):

And it was just an amazing team building event. So it's all new music, upbeat, fun, I still have it on my playlist, but we have our birthday song as part of this concert and we do it under the guise of Does anyone have a birthday this year? Which is of course everyone. And if you're familiar with the Chuck E. Cheese birthday song, it's not just Happy Birthday, it's very specific to Chuck E. Cheese. And as it started, every single guest was up and singing along to the lyrics and dancing the food truck vendors, the parents, everybody knew this song. And from a moment that was needed, it was incredible. But from a brand perspective, that's really powerful and that's really something special. And so that really stood out in my mind of like, wow, this is something, we really got something. So that would definitely be it. And if you don't know the birthday song,

Ilyse Liffreing (26:25):

I do know we can practice it after do birthday song.

Damian Fowler (26:28):

We should play this podcast out with a birthday song soon.

Ilyse Liffreing (26:30):

Yes, we should.

Damian Fowler (26:32):

Well, first off, Melissa was so enthusiastic about this new brand, this new entertainment network that the company's launching. I almost couldn't keep up with the amount of innovation the brand is putting out.

Ilyse Liffreing (26:45):

So much, so much has happen is

Damian Fowler (26:45):

Incredible. But I feel like there were a couple of bits there where she almost gave us some news. She talked about Chuck E. Cheese streaming platform potentially on the horizon, and then we sort of joked about this, but Chuck E. Cheese movie. But in an era where IP is everything and we're thinking of Barbie, why not?

Ilyse Liffreing (27:05):

Yeah, no, there's so much value in it for other advertisers too, when they're building this media network across their 500 plus venues in the US and internationally, that's a lot of screens and advertisers want to be with kids and with their parents especially.

Damian Fowler (27:24):

Another thought that was interesting to me was the way she talked with the way Melissa talked about the digital out of home and Chuckie, she's venues being almost an extension of that channel that is on the up and up really, and especially when it comes to programmatic media. So that was also something that I found intriguing.

Ilyse Liffreing (27:44):

It's also nice to know that they're doing a good job of blending their physical footprint with the digital and keeping everything we like about Chuck E. Cheese still alive in some way. Even those who remember the brand from the seventies, eighties, nineties, check that mouse is still there.

Damian Fowler (28:05):

Yeah, well, I can't say I grew up with it, but I know you did. So it's reassuring that that nostalgia is still alive.

Ilyse Liffreing (28:11):

And maybe for my birthday next year, are you going to invite me? Yes, Damian, you're invited. Thanks. And that's

Damian Fowler (28:18):

It for this edition of the current podcast.

Ilyse Liffreing (28:21):

This series is produced by Molton Hart. The current podcasts theme is by Love and caliber. The current team includes Kat Vesce and Sydney Cairns.

Damian Fowler (28:29):

And remember,

Melissa McLeanas (28:30):

Our characters are part of our experience. We never look at them to tell the experience. I'm Damian and I'm my, we'll

Ilyse Liffreing (28:38):

See you.

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