The success of Megabreak Pool Hall in Pattaya
I already wrote my story “Own boss in Thailand”, which you could read on this blog for a few days, in 2010. The editors have rightly reposted the article, because my conclusions at the end still apply. One of those conclusions was that few investments by foreigners are successful.
KriskrasThay wondered in a reaction whether there are also success stories to tell and he specifically mentioned “that pool bar in Soi Diana”. He's right, Megabreak Pool Hall, where I spend quite a few hours, is an example of a good investment at the right time. I am going to outline the development of this pool hall, noting beforehand that I am merely observing, because I have no insight into turnover, financial obligations, profit, etc. I also have no financial interest in Megabreak, I am a visitor who can be counted among the furniture. I am co-organizer of the three weekly tournaments.
History
The dome-shaped building, which the Thai investor had built around the turn of the century, was not originally intended to house a pool hall. The first tenant had it decorated like a German restaurant. I don't know why that failed, but it was soon turned into a pool hall by an Australian businessman/pool enthusiast. The intention was good, but the man got into trouble with the government and had to give up. Less than two years later, he sold the business to three Englishmen and an Irishman. These four young people had a past as a (snooker) player and decided to embark on the adventure of a pool hall in Pattaya together.
The four partners
The company has now been in existence for more than 10 years and is still led by the four original partners. From this fact you can already cautiously conclude that the initial adventure has been converted into a solid enterprise. I don't know how the company is set up according to Thai law, but one of the partners is also a partner in a reputable law firm, so I assume that all legal obligations are properly met.
So money is earned, from which all four partners receive a monthly “salary”. I don't know how much that is and I don't know if they could live on that salary. However, all four have additional income from other interests, I already mentioned the partner in a law firm, another has a pub/guesthouse and the other two partners still do business via the internet.
The management
The day-to-day management is in the hands of two partners, one is mainly concerned with administration, computer management, personnel, bar management and the other focuses on the technical aspects, such as climate control, maintenance of pool tables, sale and repair of cues. The two other partners are “asleep”, I only see them at the beginning of a month when they come to collect their salary.
For ordinary costs, the active managers probably have a monthly budget, but for major investments, an agreement is required from all four partners. Incidentally, I have the impression that the two sleeping partners are okay with everything, as long as their salary is not jeopardized.
The location
Megabreak is located in Soi Diana, close to Second Road. Soi Diana is practically opposite the back of Mike's Shopping Mall. It is a prime location in the middle of one of Pattaya's entertainment hubs. Many bars and a gogo's and also many hotels and guesthouses in the area make the street busy. Passers-by can look inside and come up with the idea of playing a game of pool.
The pool hall
Inside there are 14 large pool tables available, which can be rented. Start and end time are noted and afterwards you pay 240 Baht per hour, or actually 4 Baht per minute, because you pay per minute. You can of course go to many bars for a game of pool, sometimes for a fee, sometimes for free. The advantage of the pool hall is that you do not have to wait for your turn and you are not bothered by people who want to play after you. You can play in the pool hall for as long as you like, while enjoying a drink at the bar. In addition, the arrangement of the tables in Megabreak gives a good sense of privacy. You will not be looked down upon by others.
The visitors
The number of visitors to Megabreak consists of 50 to 70% tourists, depending on the season. I once did a small survey among those tourists and it appears that the vast majority of those Megabreak visitors stay in a hotel or guesthouse within a radius of 1 to 1,5 kilometers. So within walking distance!
The other part of the visitors are the “regulars”, who mostly live in Pattaya or spend their free time in Pattaya several times a year. They play among themselves, depending on who is present and participate in the tournaments.
Tournaments
Three tournaments a week in the 9 and 10 ball games always attract great interest. The number of participants per tournament varies, but on average 20 to 30 players, with peaks up to 50. Quality level of the players is not really important, because each player plays with a personal handicap. I'm not going to explain that completely now, but any player, of any level, can be among the prize winners. The tournaments are truly international, because the players can come from all over the world. On average, players from 10 – 15 nationalities participate per tournament, with peaks in 20 countries.
Of course you play a tournament to win, but the most important thing is the mutual social feeling. They are pleasant evenings, where everyone easily makes friends, either from their own country or from a foreign country. I always like that players from Israel are very friendly with players from Iran or Arab countries. Russians and Americans in the tournament? No problem at all, in fact, people understand each other!
Competition
Success attracts competitors, Megabreak has also experienced this. Years ago, a second pool hall was opened near Soi 2 of Second Road, which was closed again within 6 months due to lack of business. The poor location and accessibility in particular caused this project to fail. Later, another pool hall was opened in the then new Avenue Shopping Mall. Not really far from Megabreak, but that too ended in failure.
Meanwhile, two relatively new pool halls have opened, both on Third Road. Both halls have good tables, but do not offer the atmosphere that Megabreak has. The arrangement of the tables is somewhat sterile, all in line with no privacy. And then again the location, both pool halls are not in the course of tourists. We have to wait and see whether they will survive, they are competitors, but we are very friendly with each other.
The future
However, Megabreak's ideal location, which contributes a lot to its success, is also a threat. Two new luxury hotels have already opened up on Soi Diana and it should be taken into account that the owner of the property may receive an offer from another hotel magnate to build a new hotel on the ground. Fortunately, it is still a long way off and, moreover, one could think that Megabreak could then be part of the new hotel.
Conclusion
Yes, Megabreak is a fairly successful venture. The four partners earn good money and Megabreak offers employment to approximately 25 employees. The partners will not get rich and the survival of Megabreak hangs over them like a dark cloud.
Hopefully see you in Megabreak!
In the early 90's it was indeed a German restaurant called Bavaria. Thai ladies in German costumes worked there. Ever eaten 1 time. Since it's a pool hall I've never been inside. I do wonder if I go in alone, if I can play pool against a lovely Thai lady just like at a bar. And is it customary to offer the lady a Lady drink (or is it a drink there at the regular price).
Almost all the ladies in the service are reasonable pool players. You can play a game with them and of course you show your appreciation in the form of a lady drink or personal tip.
Thank you. Another 14 days and then I will be back in Pattaya and will definitely come by.
Absolutely don't get a level with pool, but that's no problem there!
Maybe goodbye.
To that vhw. German restaurant has a whole story behind it. Its owner, a German, had 2 of these occasions. Bavaria Biergarden and this restaurant. Was arrested on a false charge of narcotics trafficking. Villa and both businesses were searched from top to bottom, nothing could be found. He had a yacht that he had taken to Malaysia and back. It now appears that such a boat, upon return, requires a visa and also has to pay tax on it, which he did not know or had not done. So bingo. So deported, after paying court decision, 70 million baht fine. This lawsuit lasted 2 years because he initially refused to pay a much higher fine. And who took over the two businesses and villa? You can take one guess, specifically the BIB. If you can find an issue of Pattaya Mail from that time, you can read the whole story.
If you have a small business in Thailand as a foreigner and earn something… that's ok.
If you want something bigger, you will have to unite with an existing Thai player in that field, otherwise you will not be able to set up.
If you happen to have success with something and then don't partner with a local partner, your boat visa can get into trouble and you'll be out of the country and lost your location.
A regular fries stand can make quite a bit. But also there: keep it small and don't think about setting up a chain.
Which is a pity because it is easier to get a good fries and croquette in Pattaya Jomtien than in bkk.
@ Gerrit bkk. Yes, Gerrit, you are absolutely right. This has stuck in my head all these years, I was here then, because a total of 27, twenty-seven, foreigners were deported at that time on the pretext that they contributed nothing to the Thai economy. Everything confiscated.
Ships, that street is next to the Arcade where I ate a few times at My Way and Patricks.
Next time then grab a beer and lose pool!!
The German restaurant BAVARIA was previously located in Walking Street, a successful business but with a lack of space. After the move to Soi Diana, the clientele decreased somewhat, orchestras were deployed and the audience was brought onto the stage with games. To no avail and Bavaria disappeared from the scene.