Plug & Play Closing

[Jessie Rymph]

Hey everybody. I'm not sure if you saw the news last week that Plug & Play in Austin is closing this month.  That's all I know from seeing the announcement on Facebook. I have tons of questions!

Does anyone have any knowledge or thoughts about why they are closing? With the Bean Work Play Cafe up for sale, and now this...
who do we have left that is open and offering coworking and childcare? Are there any licensed childcare facilities, or anyone serving infants?

What does this mean for us as a potential industry?

And how can I message this to potential investors?

Thanks everyone.

--Jessie

P.S. In Seattle, our coworking space (Works Progress) has seen a great upsurge in membership since May. We plan to open a 2nd facility to offer childcare and coworking but still cannot find a building to meet the fire code and childcare licensing requirements.

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Works Progress

Ellie's Coworking + Childcare

[Deborah Engel]

Oh no!  I am so sad to hear this news.  We are still planning on opening this fall/winter, just trying to find the right space.  We have one potential location - I'm still playing with the floor plans to see if it can work.  

I'm still not sure if I'm going to get licensed from the get go, or apply for a license if the babysitting proves popular.  (In NJ, if I have 5 or less kids in the space at any given time, I don't need a license.)  In any event, I am trying to find a space that will be up to code/licensing requirements. 

I am very nervous that the coworking membership fees + babysitting financial model won't be profitable.  (I can't charge NYC membership pricing in my area and expect my demo to sign up!)  As such, I am hoping to include other revenue streams, such as mommy & me classes and an indoor playspace (which will allow me to hold birthday parties and serve as a marketing tool).  

Jessie - since you already have a coworking space up and running - have you surveyed your members to see who would use the daycare, and how often?  Maybe you can use that data with potential investors.  

Please do share any info you learn about Plug & Play and the industry as a whole.  

Best,

Deborah Engel

Workan...@gmail.com

www.workandplaynj.com

Like us on Facebook

Work and Play: 

A coworking facility with drop-in babysitting, caregiver & me classes and an indoor playspace.  

Coming soon to SOMa.  

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[Jessie Rymph]

Thanks, Deborah. We have surveyed potential members, and that's why we're so excited to continue exploring this business. There is a lot of interest!  Even if you don't have to be licensed, do you have to meet the city/state fire code for child care facilities? Currently that is where we are getting stuck. We keep finding two story wood buildings that aren't allowed by the city of Seattle because they are highly flammable. I've become decent at reading architectural drawings for building materials. The search continues!

--Jessie

[Amy @ Plug & Play]

Hi everyone,

Yes, it's true. Plug & Play closed it's doors last Friday, June 14th. It's been a very difficult time for us. I want to whole-heartedly echo Adela's parting wisdom in another thread - what she experienced is absolutely what we experienced. Bean is now closed as well. Adela sold/transitioned it to a preschool for that preschool's second location. One expensive lesson for us was what people say they want and what they'll pay for are two different things - that includes additional fees for yoga, Spanish, Chinese, Mommy & Me, music classes, etc. While there is no direct competition, there is a lot of indirect competition from more established programs and preschools. 

I'd be happy to answer any particular questions from the group.

Best of luck to everyone,

Amy

[Shelley Delayne]

I'm currently working on opening a coworking space in way-south Austin, and came across Plug n Play in my research and was so sad it is no longer. I'm glad to have a glimpse of why, though.