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May 19, 2010

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Passion first, investment second

ALEX Chu is an information technology specialist whose flexible work hours enabled him to start a game board bar close to Fudan University about a year ago. A game aficionado, he and several partners chipped in 250,000 yuan (US$36,609) to start the business. They call their bar Xiyouji, or "a story of fun and games."

"Some people run board game bars as an investment, some as a hobby," he said. "We belong to the latter."

Chu and his partners are waiters, game attendants and even players when a given game lacks the minimum number needed to play it. He got the idea for the bar because board game enthusiasts like himself often had to cram into small living rooms or hunt for bigger places to play.

"It's a great chance to meet new friends," he said of the recreation.

Of course, there are drawbacks. The best of the board games are often in English or German, Chu said, and many students or white-collar workers who come to the bars seeking relaxing fun are put off by foreign language challenges.

According to many players, the most popular board game on the Shanghai game bar scene is Sanguo Sha, a card game inspired by the Chinese classic tale "the Legend of Three Kingdoms." Its developer, a board game company based in Beijing, has sold more than 1 million sets of Sanguo Sha since its first appearance in 2006, and the business generated more than 10 million yuan in 2009.

"We've got more than 10 sets of Sanguo Sha in store," Chu said. According to him, the biggest advantage of local board games is its familiar historical background. "It won't be this successful if it borrows names from the American Civil War."

Chu moved his bar to bigger premises about three months ago.

"We were happy with the profit at our previous place, but we hated to turn people away when the house was full," said Chu, "But now profit is greatly encroached upon by heavier rent."

The new bar, filled with tables and chairs, is plainly decorated except for pink curtains draped from the ceiling to lend an atmosphere of privacy.

"We love our business and we are still doing well," Chu said. "But if one day it gets too pricey, we will have to quit it."

High rents are driving board game bars to humbler digs, such as neighborhood nooks, obscure crannies in shopping malls or second-floor space. Only 40 percent of board game bars can afford spaces larger than 200 square meters, according to an online survey. Rents can account for up to 80 percent of operating costs and eat up more than half of monthly earnings.

However, heavy rents haven't yet damped the charm of board game bars for some newcomers to the industry. Several blocks away, deep in a narrow alley, is another board game bar with large white tables and cozy sofas. Several painted cartoon monkeys beam down on passers-by from the front wall.




 

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