What It Really Costs to Build and Launch an Escape Room
Hello, future escape room owners!
Starting an escape room is an exciting adventure, but how much does it really cost? Whether you’re planning a single room or dreaming of an escape room empire, knowing the financial landscape is crucial. This guide will walk you through the key costs involved in building and launching your escape room, from initial setup to ongoing expenses.
Choosing your business structure
Your first financial decision is choosing the right business structure, which impacts your responsibilities and how profits are taxed.
Sole trader: Simple and quick to set up. You keep all profits but are personally liable for debts.
Partnership: Great for teaming up with others. You share profits, responsibilities, and liabilities.
Limited company: Offers protection by separating personal and business finances but involves more paperwork and compliance.
Pro tip: If you’re unsure which structure is best for your goals, consider your long-term vision. Limited companies provide greater flexibility and protection as your escape room grows, but starting as a sole trader can reduce initial costs and admin.
Setup costs: turning your vision into reality
Building an escape room is where most of your upfront costs will go.
Room design and puzzles: Props, set design, and tech for puzzles can range from £5,000 to £50,000, including construction and installation — or more for highly complex designs.
Equipment and furniture: Don’t forget booking desks, waiting area furniture, and tech like cameras and sound systems.
Permits and licences: Depending on your location, you may need special permits for health and safety or business operations.
Insurance: Public liability, employer’s liability, and contents insurance are essential to protect your business.
Pro tip: Always budget 20–25% more than your estimated costs to cover unexpected overruns during construction or design. It’s better to have a financial cushion than face delays or compromises.
Recurring expenses: keeping the lights on
Once your escape room is ready, ongoing costs become part of your monthly routine.
Rent: Prime locations mean higher rents. Check if you qualify for small business rate relief.
Utilities: Electricity, water, and internet for smooth operations.
Marketing: Social media ads, website hosting, and partnerships to keep your brand visible.
Payroll: Staff wages, National Insurance contributions, and pensions for your team.
Repairs and maintenance: Escape rooms face wear and tear. Budget for regular fixes and replacements.
Pro tip: Review your recurring expenses regularly and look for ways to optimise, like negotiating utility contracts or consolidating software subscriptions. Small adjustments can lead to big savings over time.
Taxes: what you’ll need to budget for
Understanding your tax obligations is essential to avoid penalties and manage cash flow effectively.
Income tax: Sole traders and partnerships must file a Self-Assessment tax return annually.
Corporation Tax: Limited companies must pay this on their profits and file annual accounts.
VAT: Register if your turnover exceeds £90,000, and remember to file quarterly VAT returns.
Pro tip: Always set aside a portion of your income to cover taxes. Overspending on funds owed to HMRC is a common pitfall.
Hidden costs: the surprises you’ll want to plan for
Escape rooms often come with unexpected expenses that can catch owners off guard:
Emergency repairs: Broken locks, faulty tech, or damaged props.
Spare inventory: Keeping duplicates of essential props saves time when something breaks.
Professional advice: Accountants, marketing consultants, or legal fees can arise as your business grows.
Pro tip: Always maintain an emergency fund to handle surprise costs. A small reserve can make the difference between a minor setback and a major financial headache.
What does it really cost?
When it comes to starting an escape room, there’s no one-size-fits-all answer. The total costs depend on factors like location, design complexity, and the size of your operation.
For example, when I launched my own escape room as a limited company in London, it cost £70,000 for one room. This included:
A fully fitted-out game, lobby, and staff room.
Three months’ rent in advance.
A six-month deposit.
I’ve also seen escape rooms launch for as little as £10,000 or as much as £100,000 or more. The circumstances — like location, the number of games, and the level of complexity — play a huge role.
It’s not just about what it costs to launch; maintaining your escape room is equally crucial. Setting your prices correctly and creating a financial plan to cover ongoing expenses is key to long-term success.
Pro tip: Don’t underestimate the value of a solid pricing strategy. Research competitors in your area, calculate your breakeven point, and ensure your pricing covers both fixed and variable costs while leaving room for profit.
Ready to launch your escape room?
If you’re ready to turn your vision into reality but want to make sure your finances are in order, I can help. From creating a detailed budget to advising on startup business loans, I’ll guide you every step of the way.
Get in touch to book a consultation and let’s build your dream escape room together!
Chi / Sam
Your Escape Room Bookkeeper
