Operations
Newly appointed CEC Entertainment CEO Scott Drake is leveraging the financial stability built during his tenure as CFO to aggressively expand Chuck E. Cheese globally through high-value subscription models, parent-facing AI tools and a major pivot toward physical “active play” formats.
Photo: CEC Entertainment
June 18, 2026 by Mandy Wolf Detwiler — Editor, Connect Media
When Scott Drake took over as president and CEO of CEC Entertainment in February, he wasn’t looking to abandon the foundation built during his two years as the company’s CFO — he was looking to capitalize on it. After spearheading a major financial restructuring that shifted the parent company of Chuck E. Cheese and Peter Piper Pizza from a heavy investment phase into a high-free-cash-flow engine, Drake is leveraging that newfound financial strength to fuel an aggressive brand evolution.
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President and CEO of CEC Entertainment Scott Drake. Photo: CEC Entertainment |
From the launch of the massive, active-play “Adventure World” format to a sophisticated, multi-language AI backend built to erase friction for parents, Drake is executing a strategy designed to transition the iconic “eatertainment” brand into the global leader in family entertainment.
“CEC is operating from a position of strength as we move forward in 2026 and we are prepared to accelerate our expansion domestically and internationally, with brand extensions and diversified revenue streams,” Drake said in a company statement.
We caught up with Drake in an email interview to discuss his expanded focus, the line between technology and the guest experience, and how the iconic kid-first brand plans to outpace a crowded entertainment market.
Q: As the former CFO, you’ve spent the last two years strengthening the balance sheet and refinancing debt. Now that you’re in the CEO chair, how does your focus shift from ‘protecting the bottom line’ to ‘growing the brand’s cultural legacy’?
Scott Drake: The financial foundation we built over the past two years wasn’t just about protecting the bottom line; it was about creating the freedom to invest boldly in our future by exiting a “high store investment” phase and entering a “high free cash flow” phase. We restructured all our debt (over the last five to six years) and allowed for cash within our capital structure to commit over $350 million to our systemwide transformation. That work positioned us to do what we’re doing now: building traffic to our existing stores, expanding into new formats like Adventure World, growing our international footprint across six continents and building Chuck E. Cheese into an all-in-one family entertainment brand that is trusted by today’s families.
My focus hasn’t shifted; it’s expanded. Financial discipline remains core to everything we do, but now we’re leveraging that strength to deliver real value for families when they need value more than ever. We’re building a greater experience under one roof, with still great food, expansions in active play and birthdays, all at a price point that makes sense for families. We’re focused on our value proposition that differentiates us in a crowded market (especially with up to 50% off food and beverages for our Gold 2-month and 12-month membership holders)
Q: David McKillips oversaw a massive physical transformation of the Fun Centers. What is the one initiative from his tenure that you are most committed to doubling down on, and where do you plan to pivot or depart from the previous strategy?
Drake: David’s legacy is extraordinary; he guided us through a pandemic, bankruptcy and one of the most ambitious transformations in family entertainment history. Nearly 500 Fun Centers have been remodeled with brighter spaces, better games, enhanced technology and most importantly, active play elements that kids and parents both love.
The initiative I’m absolutely doubling down on is active play. The data is clear: Adventure World, Adventure Zones and Superhero Playgrounds have elevated every metric in guest satisfaction. Parents want physical, imaginative, confidence-building experiences for their kids. That’s why we opened our first Adventure World in Arlington, Texas, a 12,000-square-foot active play destination designed for families. As we continue to innovate in this space, where we’ll evolve is in format diversification and additional revenue streams. We’re continuing to build our licensing and entertainment IP and testing new concepts that extend the Chuck E. Cheese experience beyond our four walls.
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Photo: CEC Entertainment |
Q: With the launch of Chuck E. Cheese Adventure World and Mega-Superhero Playgrounds, you’re moving away from traditional arcade-only models toward ‘active play.’ Do you see CEC eventually becoming more of an indoor theme park company than a restaurant chain?
Drake: I see us becoming the global leader in family entertainment. The reality is, we’ve never been just a restaurant chain or just an arcade. We’ve always been about creating memories through the combination of food, games and entertainment. What’s changed is how families define “entertainment.” That’s why the category “eatertainment” came about.
Today, entertainment for young kids is climbing walls, sports elements, interactive play zones and immersive experiences that get kids moving. Adventure World isn’t a departure from who we are, it’s an evolution. It takes everything families love about Chuck E. Cheese, the characters, the birthdays, the safe environment and amplifies it through active, physical play, bringing multiple ways to play all under one roof. We’re not abandoning our core Fun Centers; we believe there is room for both. Families who want more games and large birthday parties and a larger menu, can still choose Chuck E. Cheese. AND for families who want a different experience with a brand they already know and trust, we’ve got that too!
Q: The brand recently launched a ‘New Adult Menu’ and more sophisticated dining options. How do you balance being a ‘kid-first’ destination while simultaneously trying to capture a larger share of the millennial and Gen Z parent market?
Drake:We are doing everything we can to be THE destination kids AND parents think about when they are planning how to spend family time or a birthday party! So our advertising strategy is a mix of reaching both audiences but with more effort spent on being where kids are… we are on all major networks, streaming services, movie theater releases and are in the top 25 shows kids and parents watch. The elevated menu is still active in our stores for parents seeking that, but we are still laser-focused on what kids want. Parents will take their kids to Chuck E Cheese if the kids ask to go, so we are making sure we are on their list when considering what to do.
Q: CEC has been aggressively investing in personalization and first-party data. How do you plan to use AI to change the guest experience — is it through smarter menu recommendations, or perhaps even more interactive, AI-driven entertainment in the showrooms?
Drake: Let me start with what we’re not doing, because it matters. Our core guests are kids three to eight years old, and we’ve made a deliberate choice not to integrate AI into our games, our active play, or any of the key kid-facing touchpoints inside our Fun Centers. The bar for putting AI in front of a five-year-old is, and should be, extraordinarily high. Where we are moving aggressively is everywhere AI can make life easier for parents. Anything that reduces friction between a parent and a great visit to Chuck E. Cheese is, by definition, a win for us.
The most visible piece of that today is the AI chatbot on chuckecheese.com, which has now helped about 440,000 guests. It’s much more than a birthday FAQ tool — it answers questions about our brand history, helps families plan a visit, walks parents through menu options and guides them through booking a party. The same knowledge base is about to power a phone-based, AI-driven IVR that can take inbound calls, answer questions and book birthday parties in multiple languages, 24/7, with no hold time. To be clear, the business case there isn’t labor savings. It’s eliminating the moment where a parent calls on a Sunday night, can’t get through, and goes somewhere else. We want to be available whenever the decision to celebrate is made.
On the marketing and insights side, we’re leaning in hard. We use AI-driven creative testing to evaluate ads before they go to market, which is changing how we develop work and how quickly we learn. Our store-level guest satisfaction system uses AI to produce a custom report for every Fun Center every period — what’s working, where the opportunities are, which characters and which experiences are driving the GSAT (guest satisfaction) lift. We’re applying similar tools to our digital marketing — particularly to SEO and to the emerging discipline of Generative Engine Optimization, making sure Chuck E. Cheese is the answer when a parent asks LLMs where to throw their kid’s sixth birthday.
Q: CEC is about to debut in the United Kingdom and continue expanding into markets like Australia and Egypt. What have you learned about international ‘play styles’ that will change how the brand presents itself outside of North America?
Drake: One of the most exciting things about Chuck E. Cheese is that fun is universal, but how families experience fun is different. We’ve learned that our franchise model needs to be adaptable, not just in menu offerings and languages, but in how we design play experiences, celebrate birthdays and engage with local communities. The core DNA, the characters, the birthday parties and the safe environment travel everywhere. But the execution needs to be locally relevant in all ways. That’s the balance we’re striking as we expand globally thanks to our great partners around the globe.
Q: The transition to a subscription-based Fun Pass model was a major revenue driver in 2025. What is the ‘Version 2.0’ of your loyalty strategy—how do you keep families subscribed during tighter economic periods?
Drake:The 2-month Fun Pass has been a game-changer. We launched it in May 2024, and by the fall we hit over 400 thousand passes sold. That led to the launch that same year of our 12-Month Annual Membership which led to over half a million families who bought some type of pass/membership and now see Chuck E. Cheese not as an occasional destination, but as a regular part of their routine.
The genius of the Fun Passes and memberships is that it deliversincredible value at a predictable price point. For as little as $7.99 a month, families get unlimited visits, daily gameplay and discounts of up to 50% on food and drinks (at the Gold level). In an economy where families are stretched thin, that’s a proposition that makes sense.
Version 2.0 is about deepening engagement and delivering more value. This Summer’s Summer Fun Pass (previous 2-month version) kicked off in April and gives families 5 months of unlimited visits and an incredible summer deal through Labor Day! Starting at 54.99 in some markets, this deal allows families to enjoy family time with an incredible offer and it’s the same price as last year but with added perks. Between our passes and Summer Family deal, we are offering a complete family experience — all under one roof — and at a price point our competitors simply can’t match. Our commitment is to deliver an experience that’s worth it every single time. If families feel like they’re getting more value than they’re paying, they’ll stay and they’ll come back!
These programs are clearly a vital part of our transformation and existing store growth plans for doing well into the future.
Q: With competitors like Dave & Buster’s and new indoor adventure parks emerging, what do you believe is CEC’s competitive advantage that others simply cannot replicate?
Drake: Three things: brand legacy, family focus and format flexibility.
First, Chuck E. Cheese is an American icon. In a crowded space, we are differentiating ourselves by offering food, play, birthdays and beloved characters all under one roof at a great value. Second, we are unapologetically kid-first. Everything we do, from our active play zones to our birthday party packages to our menu, is built around creating a safe, fun, age-appropriate environment where kids can be kids. That focus is our superpower. Third, we’re not locked into one format. We have traditional Fun Centers, Adventure World and international franchises that adapt to local markets. That flexibility allows us to meet families wherever they are, literally and figuratively. Where we stand out is established trust, a beloved character universe and a brand that parents genuinely trust their kids to experience.
About Mandy Wolf Detwiler
Mandy Wolf Detwiler is the Pizzamarketplace.com and QSRweb.com editor for Connect Media. An award-winning journalist, Mandy brings more than 20 years’ experience covering food, people and places. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and, yes, she can tell you where to find the best pizza slices in the country.
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