It was 1957 when the visionary Mauricio Mochkovsky and his son
Jorge started the company, operating jukeboxes and Bally bingos in bars and
sports clubs in Argentina.
Later sons Alex and Ricardo joined in,
and after several years of operation, bingos were banned. In 1969 the company
opened its own entertainment center in Mar del Plata, which was a huge success.
This was the first Sacoa family entertainment center (FEC), before the term FEC
was ever used in the States.
Jorge's sons Sebastian, Pol, and
Andres later joined the business, making their mark on the evolution of a
company that quickly became the largest entertainment operator in the country,
with over 20 centers in Argentina.
Sebastian explained that Sacoa has
become a household name in Argentina, synonymous with family entertainment.
Lately this is beginning to take root in other countries as
well.
In the early '90s, Jorge realized they needed a much better way to
control the business, keep track of the revenue, rotate games wisely, modify
prices to compensate for inflation, and avoid theft. The solution began to take
shape and by 1993 the first Sacoa Entertainment store to replace the traditional
tokens for a computerized magnetic debit card system went
online
The system's hardware and software were developed and
manufactured by a sister company, Sacoa PlayCard Systems, which initially
sourced all Sacoa FECs and soon started exporting to other countries. The first
overseas installations were made in 1994 and currently there are several hundred
installations in 37 countries.
Sebastian explained that the
PlayCard System is THE solution to optimize the operation of FECs, amusement
parks, and arcades. It uses a rechargeable magnetic debit card with centralized
management from a remote corporate office.
The player buys a card with
the amount of credit desired. Then, to play a game or activate a ride turnstile,
he swipes the card through the reader. There is no chance of customers or
cashiers cheating the operator or other customers.
Sebastian added, "We
developed the whole thing, software and hardware. The date we made history was
March 1993 when we installed the PlayCard System in one of our centers to
evaluate customers' reactions and to make sure it was working
properly.
"It worked better than we dared dream and the best part was that
collections went up 30 percent. We saw that and asked ourselves what kind of
magic was going on. It turned out that no magic was involved, just the use of
the correct tool to run the business at peak efficiency. We were so excited and
anxious to install the system as soon as possible at all of our centers around
the country that we completed the job in less than a year. Sure enough, revenues
rose at each venue that got the new system.
"We had another surprise: At
certain locations where there was heavy competition we saw a rise in revenue of
up to 100 percent. I'm talking about an area of about six or seven blocks with
eight or nine amusement centers. Again, it seemed like magic when our slice of
the cake grew."
Sebastian told us that it was an advantage for Sacoa to have its own
locations to test the system. "Nothing replaces having your own centers to test
the product. You can see the results immediately. We can develop new features
and see if they are good because we are experienced operators ourselves. If the
feature needs tweaking or modification we can always make a new version. You
can't do that if you don't have control over the centers."
He added
that being operators brings customer operators a sense of trust and comfort when
contemplating the use of the PlayCard System. "We have a high quality product
backed by a prestigious company with an exemplary track record. We show
prospective customers real-life cases that demonstrate how quickly they can
recover their initial investment. We also point out some of the operational
possibilities open to them with a system like ours, which are completely
impossible to achieve without one. None of our customers have been
disappointed."
In 1994 Sacoa sold the system to its first customer, who operated in
Brazil. In 1995 one of the most popular restaurant/FECs from the United States
bought the card system for one location and was going to test it for six months.
After just three weeks the owner called Jorge and wanted to have the system
installed in all of his stores. Sacoa installed the system in eight stores in
just three months. That chain now has more than 40 centers and are all using the
PlayCard Debit Card System."
In fact, Sebastian said that nearly everyone
who tried the PlayCard System in one location came back for more. Every custom
development made for a particular customer is then made available to all
customers. Such has been the case with party programs, e-tickets,
redemption/inventory control programs, etc.
The PlayCard Debit Card System which for years has increased revenues
for hundreds of locations in a number of countries now has another advantage:
wireless operation. Sebastian noted that one customer saved over $16,000 in a
100 game center because they did not have with the hassle of running wiring and
now they can change their layout as easily as moving furniture
around.
The wireless version makes economic sense for any kind of
FEC or outdoor park. "It's never been easier to switch to a card system. I think
operators are ready for this but are a bit reticent if they really haven't had
the opportunity to glimpse the 'inside story' or the level of flexibility and
control that you can achieve with a cashless system," noted
Sebastian.
From Mauricio's and Jorge's vision, Sacoa Entertainment and
PlayCard System have evolved from the early days to a three-generation family
business with 650 employees. There have been over 400 PlayCard System
installations all over the world.
According to Sebastian, "Over the
years we have garnered a seemingly loyal following among our competitors. Our
innovative features seem to always find their way into other companies'
specifications. We are flattered."
Sebastian talked about the fourth
generation waiting in the wings for their opportunities at Sacoa. However, that
may be awhile because they are likely more interested in watching cartoons right
now. Sebastian has a son Ezequiel, who is three, and a daughter who they will
name Victoria when she makes her debut to the world sometime this month; Pol has
a daughter Martina, who is five. With the advances in technology and the talent
already seen in the company, we can't wait to see what happens 20 years from
now!
The Vulqano Park project
In the operations field, besides managing its wide chain of
FECs in Argentina, Sacoa went abroad and partnered in the operation of Vulqano
Park, part of a major touristic destination in Quito, Ecuador, called the
TeleferiQo de Quito project (www.teleferiqo.com).
The 200,000-square-foot park includes 30 rides, a central midway
building with a food court, an arcade, and a special events
room.
Pol Mochkovsky, CEO of the project, said, "This was a great
experience for us. We designed the concept; selected the rides and games; and
set up the whole amusement park with the valuable knowledge of our engineers,
technicians, and managers."
This is the first permanent amusement park in Quito; since it opened
its doors in summer 2005, it has changed the way Ecuadorians have fun. Pol
added, "We have just ended a great summer season. Using the debit card system we
have introduced several cross-promotions with major local retailers that
resulted in increased customer routing and brand recognition. In a very short
time Vulqano Park has become one of Quito's most important entertainment
options."
This experience set the milestone for Sacoa's consulting
services in operations, now offered worldwide.