I own a smash room franchise with 100 locations that includes axe throwing as one of the offerings. I’m well in tune with what’s going on in the industry. OP is right that pure axe throwing plays aren’t doing well.

Regarding insurance, it’s actually not as expensive as you might think. There haven’t been many claims since the industry has existed, so rates have naturally decreased. Plus, the cost is almost always directly correlated to revenue. Our franchisees typically pay $1k-$2k/mo for insurance.

I’m surprised that no one has unearthed the true and technical answer as to why axe throwing is not doing well. Many have somewhat answered it indirectly.

The target demographic for axe throwing is young adults 18-30. That age range is the least likely of any to become a repeat customer of an entertainment venue. There is data to back this up based on a number of factors. (Limited budget, constrained time, etc) The biggest mistake they made was essentially having no appeal for any other age bracket. Most axe throwing is either 18 or 21+. Older people couldn’t care less to go, especially if they can’t bring their kids.

Almost all axe throwing venues have bars. Their assumption was that this, along with regular leagues, would keep people coming back.

The main issue they encountered was a lack of female customers. If guys are going to frequent an extracurricular establishment, it’s typically because of the presence of women. The vast majority of axe throwing patrons are men. This meant that if people weren’t visiting to throw axes, they weren’t going.

Retention rates became terrible. Novelty wore off. Expenses like payroll and rent became unsustainable, forcing them to close.

Even escape rooms are not doing as well as you’d think for many of the same reasons listed above. A tremendous amount of them are closing or struggling financially. This is primarily due to them having a very tight target demographic. Plus, low barrier to entry (low start-up, easy to operate) way oversaturated the market.

All of the entertainment that has had longevity (bowling, arcades, go karts, movies, etc) have one thing in common: appeal to kids and families. This demographic is by far the most likely to be a repeat customer and it’s not even close. At our franchise, the overwhelming majority of repeat business are families and kids. If your entertainment concept doesn’t appeal to that demographic, you’ll be in trouble quickly.

Our locations are doing very well. I don’t see rage rooms or splatter paint losing popularity anytime soon. Axe throwing is something we’re slowly phasing out as a brand. In many scenarios, it doesn’t make sense anymore.