We caught up with the brilliant and insightful Akos Gabossy a few weeks ago and have shared our conversation below.

Akos, looking forward to hearing all of your stories today. What were some of the most unexpected problems you’ve faced in your business and how did you resolve those issues?

The COVID-19 pandemic marked the most unforeseen challenge in my business career. Our stores were forced to close for an entire year, leaving us grappling with the daunting task of surviving without any revenue. Being non-US citizens, our access to funding and bank financing options to weather the storm were severely limited.

The pressure was immense; we were compelled to let go of nearly all our staff while still facing the burden of rent payments across 15 different locations. Unfortunately, most landlords were unsympathetic and unwilling to make concessions, leaving us with no choice but to navigate through delayed payments without any rent discounts.

Given that we were in the midst of an active expansion phase, we found ourselves exceptionally vulnerable and significantly undercapitalized. This situation diverted our attention away from our core industry and escape room activities, leaving us with zero creative energy as we struggled to manage our liquidity crisis incessantly.

Awesome – so before we get into the rest of our questions, can you briefly introduce yourself to our readers.

As the CEO and co-founder of one of the longest-standing escape room brands (PANIQ ROOM) globally, I oversee a network of 25 locations. Our largest flagship store, set to open this spring in West Hollywood, represents a significant milestone for us. Annually, we host 300,000 players and anticipate generating a systemwide revenue of $15 million this year.

I take great pride in our latest venture, a quiz room concept that offers an immersive and interactive trivia experience. Additionally, I’m proud of the impact we’ve had on inspiring numerous escape room companies, having been at the forefront of the industry since our inception in Budapest, which remains a hub for escape room enthusiasts worldwide.

A staunch advocate of the experience economy, I firmly believe in the value of providing off-home, off-screen entertainment experiences.

Conversations about M&A are often focused on multibillion dollar transactions – but M&A can be an important part of a small or medium business owner’s journey. We’d love to hear about your experience with selling businesses.

Since the inception of PANIQ Room, my greatest aspiration has been to cultivate this remarkable brand and ultimately sell it. Over the years, we’ve acquired numerous smaller facilities and escape room chains, yet our ultimate objective is to secure a larger, better-capitalized partner. I envision myself as an ambitious sailor, eager to join a bigger ship rather than remaining the captain of my own smaller vessel.

PANIQ Room has been in a continuous expansion phase for the past decade. As we approach 2025, our focus shifts towards generating EBITDA, a critical factor in preparing a company for sale. While we always maintain a long-term perspective, the process of building a brand and a comprehensive system requires significant time and financial investment.

What’s worked well for you in terms of a source for new clients?

From the very beginning, PANIQ Room has utilized Groupon as a marketing tool. Customers are eager to purchase coupons, making it an effective method for attracting individuals to try new experiences. Furthermore, Google serves as our main marketing platform. We invest heavily in SEO and other strategies to ensure our presence at the top of search results. I think our website is pretty user friendly.

Contact Info:

• Website: https://paniqescaperoom.com/los-angeles/en
• Instagram: https://www.instagram.com/paniqroom
• Linkedin: https://www.linkedin.com/in/gabossy/
• Twitter: https://twitter.com/agab0ssy