---
title: "How much a haunted house actually makes"
url: https://modern-mba.com/case/haunted-houses
sector: "Media & entertainment"
sector_url: https://modern-mba.com/sector/media-and-entertainment
aired: 2024-10-20
published: 2026-08-26
updated: 2026-08-28
reading_time_minutes: 12
charts: 14
video: https://www.youtube.com/watch?v=7tljAmEe1YQ
author: "Yishan Lin"
author_url: https://www.linkedin.com/in/yishanlin/
publisher: Modern MBA
license: "© Modern MBA, all rights reserved. Quote and cite with credit and a link; republishing needs written permission."
---

# How much a haunted house actually makes

A haunted house costs a quarter of a million dollars to build, cannot be repurposed for anything else, and has four to six weekends in October to earn it back. No bank will lend against it, there is no IP protection on a scare, and the audience is local rather than tourist. It is one of the worst-structured businesses in entertainment — and the two Ohio operators in this episode run 70% and 50% operating margins, against 31% at Disney Parks and 26% at Six Flags. This case study is the accounts behind that.

## Key figures

- **70% vs 31%** — Chippewa's operating margin against Disney Parks'
- **6 weekends** — To earn back a build that has no value the other ten months
- **$181 vs $1,414** — Commercial land per square foot, Ohio against California

## The argument

Halloween is a $12 billion holiday in America — bigger than Independence Day and graduation — and per-person spending has more than doubled from $48 in 2005 to $109 in 2023. Inside it sits a $300 million haunted-house industry nobody covers: 1,200 attractions, more than there are amusement parks. And the capital of it is Ohio, with 135, because commercial property there runs $181 a square foot against $1,414 in California.

The business itself is structurally awful and everyone in it knows it. A build costs $250,000 at the industry average and $1.1 million at Nightmare Cleveland — comparable to opening a Subway — except the asset cannot be repurposed and is worth nothing ten months of the year. There are four to six weekends in October to recover it, no IP protection on a scare, and no bank will lend against it, so the entire industry is bootstrapped.

And then the margins. Chippewa Lake Slaughterhouse grosses $351,000 against $81,000 of total operating costs for a 70% operating margin. Nightmare Cleveland runs 50%. Against them: Universal at 44%, Cedar Fair 35%, Disney Parks 31%, Six Flags 26%. Two men in Ohio out-earn every public theme park operator on earth per dollar of revenue, on a business open six weekends a year — because there is no rent, no year-round payroll, and the product is labor and imagination rather than steel.

## Charts

### Halloween is a real holiday

American consumer spend by holiday, via the National Retail Federation. Bigger than Independence Day and graduation combined.

|  | US dollars |
| --- | --- |
| Valentine's Day | $26B |
| Halloween | $12B |
| Independence Day | $9B |
| St Patrick's Day | $7B |
| Graduation | $6B |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-1 · Sources: https://modern-mba.com/case/haunted-houses#sources

### And it keeps getting bigger

Individual spend on Halloween, via the National Retail Federation. More than doubled in under twenty years.

|  | US dollars |
| --- | --- |
| 2005 | $48 |
| 2007 | $65 |
| 2009 | $56 |
| 2011 | $72 |
| 2013 | $75 |
| 2015 | $74 |
| 2017 | $86 |
| 2019 | $86 |
| 2021 | $92 |
| 2023 | $109 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-2 · Sources: https://modern-mba.com/case/haunted-houses#sources

### There are more haunted houses than amusement parks

Number of attractions by venue type in the United States, 2024. A $300 million industry nobody covers.

|  | Counts |
| --- | --- |
| Movie theaters | 2,278 |
| Water parks | 1,300 |
| Haunted houses | 1,200 |
| Amusement parks | 641 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-3 · Sources: https://modern-mba.com/case/haunted-houses#sources

### And the capital is Ohio

States with the most haunted houses, 2024. The amusement park states are second fiddle.

|  | Counts |
| --- | --- |
| Ohio | 135 |
| California | 128 |
| Illinois | 106 |
| Texas | 98 |
| Pennsylvania | 97 |
| Florida | 92 |
| Indiana | 86 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-4 · Sources: https://modern-mba.com/case/haunted-houses#sources

### Because land is the whole constraint

Average price per square foot of commercial property for sale, via Crexi. More space means more spectacle.

|  | US dollars |
| --- | --- |
| California | $1,414 |
| New York | $933 |
| Texas | $741 |
| Florida | $431 |
| Ohio | $181 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-5 · Sources: https://modern-mba.com/case/haunted-houses#sources

### Theme-park scale, built by two men

Square footage of the two Ohio haunted houses against other attraction types.

|  | Counts |
| --- | --- |
| Chippewa | 70,000 |
| Amusement park | 53,819 |
| Water park | 50,000 |
| Dave & Buster's | 44,000 |
| Nightmare Cleveland | 36,000 |
| Movie theater | 12,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-6 · Sources: https://modern-mba.com/case/haunted-houses#sources

### It costs about what a franchise does

Upfront cost to open, against other retail concepts. The difference is that a Subway is open 365 days a year.

|  | US dollars |
| --- | --- |
| Cinnabon | −$384,000 |
| Subway | −$375,000 |
| Sport Clips | −$351,000 |
| UPS | −$325,000 |
| Haunted house industry average | −$250,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-7 · Sources: https://modern-mba.com/case/haunted-houses#sources

### At the top of the market it is far more

Total cost to build by attraction. A cinema plays films year-round; a haunt has six weekends.

|  | US dollars |
| --- | --- |
| Movie theater | −$2,005,000 |
| Nightmare Cleveland | −$1,100,000 |
| Chippewa | −$750,000 |
| Industry average | −$250,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-8 · Sources: https://modern-mba.com/case/haunted-houses#sources

### What $750,000 buys

Breakdown of opening costs for Chippewa Lake Slaughterhouse. No mortgage and no bank behind it.

|  | US dollars |
| --- | --- |
| Costumes & props | −$400,000 |
| Renovation & cleanup | −$350,000 |
| Total combined | −$750,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-9 · Sources: https://modern-mba.com/case/haunted-houses#sources

### A whole year in one month

Chippewa Lake Slaughterhouse annual revenue and operating expenses. The entire cost base is $81,000.

|  | US dollars |
| --- | --- |
| Revenue | $351,000 |
| Actor pay | −$45,500 |
| Marketing | −$15,000 |
| Insurance | −$10,000 |
| Misc. | −$8,000 |
| Utilities | −$3,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-10 · Sources: https://modern-mba.com/case/haunted-houses#sources

### The scaled version

Nightmare Cleveland annual revenue and operating expenses. Three times the revenue, and rent to pay.

|  | US dollars |
| --- | --- |
| Revenue | $1,082,105 |
| Rent | −$198,000 |
| Actor pay | −$109,200 |
| Marketing | −$100,000 |
| HQ salaries | −$96,000 |
| Maintenance | −$20,000 |
| Insurance | −$12,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-11 · Sources: https://modern-mba.com/case/haunted-houses#sources

### Rent and payroll are the whole difference

Key annual operating expenses, Nightmare Cleveland against Chippewa. Two lines account for most of the margin gap.

|  | Nightmare Cleveland | Chippewa |
| --- | --- | --- |
| Rent | −$198,000 | $0 |
| Actor pay | −$109,200 | −$45,500 |
| Marketing | −$100,000 | −$15,000 |
| HQ salaries | −$96,000 | $0 |
| Utilities | $0 | −$3,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-12 · Sources: https://modern-mba.com/case/haunted-houses#sources

### Out-earning every theme park on earth

Operating margin. Two operators in Ohio against the entire public theme park industry.

|  | Percentages |
| --- | --- |
| Chippewa | 70% |
| Nightmare Cleveland | 50% |
| Universal | 44% |
| Cedar Fair | 35% |
| Disney Parks | 31% |
| Six Flags | 26% |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-13 · Sources: https://modern-mba.com/case/haunted-houses#sources

### Against every other small business we have filmed

Annual revenue against total operating costs. The haunted houses keep more of what they take than any of them.

|  | Revenue | Operating costs |
| --- | --- | --- |
| Mid East Tacos | $1,950,000 | −$1,482,000 |
| Nightmare Cleveland | $1,082,105 | −$535,200 |
| 7 Miles | $1,080,000 | −$756,000 |
| Odd One Out | $924,000 | −$600,000 |
| Los Gatos | $699,000 | −$590,000 |
| Mikiko | $600,000 | −$360,000 |
| Chippewa | $351,000 | −$81,000 |

Source: Modern MBA, “How much a haunted house actually makes”, aired October 2024. Chart: https://modern-mba.com/case/haunted-houses#chart-14 · Sources: https://modern-mba.com/case/haunted-houses#sources


## Takeaways

1. Halloween is a genuinely large holiday. Americans spend **$12 billion** on it against **$26 billion** on Valentine's Day, **$9 billion** on Independence Day, **$7 billion** on St Patrick's Day, and **$6 billion** on graduation.
2. Haunted houses are a bigger category than most people realize. There are **1,200** of them in the United States against **641** amusement parks, **1,300** water parks, and **2,278** movie theaters — and the whole industry is worth about **$300 million**.
3. The capital is not where you would guess. **Ohio** has **135** haunted houses, ahead of **California** at **128**, **Illinois** at **106**, **Texas** at **98**, **Pennsylvania** at **97**, **Florida** at **92**, and **Indiana** at **86**. The amusement park states are second fiddle.
4. Land is the entire reason. Commercial property runs **$181** per square foot in **Ohio** against **$1,414** in **California**, **$933** in **New York**, **$741** in **Texas**, and **$431** in **Florida**. In entertainment, more space means more spectacle, and only the Midwest makes space cheap.
5. So Ohio haunts are enormous. **Chippewa Lake Slaughterhouse** covers **70,000** square feet and **Nightmare Cleveland** **36,000**, against **53,819** for the average amusement park, **50,000** for a water park, **44,000** for a **Dave & Buster's**, and **12,000** for a movie theater. These are theme-park-scale sets built by two men.
6. Getting in costs about what a franchise does. The industry average build is **$250,000**, against **$375,000** for a **Subway**, **$384,000** for a **Cinnabon**, **$351,000** for a **Sport Clips**, and **$325,000** for a **UPS Store**. The difference is that a Subway is open 365 days a year.
7. At the top of the market it is far more. **Nightmare Cleveland** cost **$1,100,000** to build and **Chippewa** **$750,000**, against **$2,005,000** for a movie theater — except the cinema plays films year-round and the haunt has four to six weekends.
8. The revenue side is a single season. **Chippewa** grosses **$351,000** a year, all of it in October, and the entire operating cost base is **$81,000**: **$45,500** on actor pay, **$15,000** on marketing, **$10,000** on insurance, **$8,000** miscellaneous, and **$3,000** on utilities.
9. That produces a **70%** operating margin — against **44%** at **Universal**, **35%** at **Cedar Fair**, **31%** at **Disney Parks**, and **26%** at **Six Flags**. A haunted house in rural Ohio earns more per dollar of revenue than every public theme park operator in the world.
10. The reason is what is *not* in the cost base. **Chippewa** pays no rent, carries no mortgage, employs nobody year-round, and spends almost nothing on maintenance because the set is rebuilt each season anyway. What it buys is labor and imagination rather than steel and liability.
11. **Nightmare Cleveland** is the scaled version and the economics change accordingly. It grosses **$1,082,105** — three times **Chippewa** — but carries **$198,000** of rent, **$109,200** of actor pay, **$100,000** of marketing, **$96,000** of head-office salaries, **$20,000** of maintenance, and **$12,000** of insurance.
12. Rent is the whole difference between the two. **Chippewa** pays **$0** where **Nightmare** pays **$198,000**; **Chippewa** pays **$0** in head-office salaries where **Nightmare** pays **$96,000**. Those two lines alone account for most of the twenty-point margin gap.
13. Actors are the one cost you cannot engineer away, and they are cheap. Performers make **$80** a night for about seven hours, slightly above Ohio minimum wage — and they are the product. There is no animatronic that does what an actor does, and a scare that lands depends entirely on the person delivering it.
14. Throughput is the other constraint. Actors are trained never to stand in front of a group — the person at the head of the line is not the one who gets scared — but to work from second or third position and push the group forward, which maximizes how many people move through the building an hour.
15. Set against every other small business we have filmed, the haunted houses hold up unusually well. **Nightmare Cleveland** grosses **$1,082,105** against **$535,200** of costs; **Chippewa** **$351,000** against **$81,000**; **7 Miles** **$1,080,000** against **$756,000**; **Odd One Out** **$924,000** against **$600,000**; **Mikiko** **$600,000** against **$360,000**; **Mid East Tacos** **$1,950,000** against **$1,482,000**; **Los Gatos** **$699,000** against **$590,000**.
16. The catch is the one nobody can price. A haunted house has no IP protection — anything that works gets copied by next October — the audience is local rather than tourist, so the same people have to be given something genuinely new every year, and the asset is worthless for ten months. The margin is the compensation for holding all of that risk in one six-weekend window.

## Common questions

### How much money does a haunted house make?

More than the season length suggests. Chippewa Lake Slaughterhouse in rural Ohio grosses $351,000 a year — all of it across four to six weekends in October — against $81,000 of total operating costs, for a 70% operating margin. Nightmare Cleveland, a larger and more expensive attraction, grosses $1,082,105 against $535,200 of costs, for 50%. The industry as a whole is worth about $300 million across roughly 1,200 attractions, and the best houses gross seven figures in a single month.

### Are haunted houses more profitable than theme parks?

Per dollar of revenue, considerably. Chippewa runs a 70% operating margin and Nightmare Cleveland 50%, against 44% at Universal Parks & Resorts, 35% at Cedar Fair, 31% at Disney Parks, and 26% at Six Flags. The reason is what a haunted house does not carry: Chippewa has no rent, no mortgage, no year-round payroll, and almost no maintenance, because the set is rebuilt every season anyway. The product is labor and imagination rather than steel, insurance, and permanent infrastructure.

### Why are there more haunted houses in Ohio than California?

Land. Ohio has 135 haunted houses against 128 in California, 106 in Illinois, and 98 in Texas, because commercial property in Ohio costs $181 per square foot against $1,414 in California, $933 in New York, and $741 in Texas. In entertainment, more space means a bigger spectacle, and only the Midwest makes space cheap enough for one operator to build across tens of thousands of square feet. Chippewa Lake Slaughterhouse covers 70,000 square feet — bigger than the average water park.

### What does it cost to open a haunted house?

About $250,000 at the industry average, which is comparable to a franchise — $375,000 for a Subway, $384,000 for a Cinnabon, $351,000 for a Sport Clips, $325,000 for a UPS Store. At the top end it is much more: Chippewa Lake Slaughterhouse cost $750,000, split roughly $400,000 on costumes and props and $350,000 on renovation and cleanup, and Nightmare Cleveland cost $1,100,000. The industry rule of thumb is that a build should not exceed $25–30 per square foot. No bank will lend against it, so the entire industry is bootstrapped.

### Why is the haunted house business so risky?

Because everything about it is concentrated into one month. The build cannot be repurposed for anything else and is worth nothing for ten months of the year, and there are only four to six weekends in October to earn it back. There is no IP protection on a scare, so anything that works is copied by the following season. Banks will not finance a seasonal, capital-intensive venture with no collateral value. And in Ohio the audience is local rather than tourist, which means the same people return each year and have to be given something new every time.

### How much do haunted house actors get paid?

About $80 a night for roughly seven hours, which puts them slightly above Ohio's minimum wage. They are also the single largest operating expense at both attractions — $45,500 a year at Chippewa, where they are 56% of the entire cost base, and $109,200 at Nightmare Cleveland. That is deliberate: no animatronic delivers what an actor does, and the whole experience collapses if a performer does not hit their mark. Actors are trained never to stand at the front of a group, but to work from second or third position and push people forward, which maximizes throughput.

## Discussion

- Halloween is a $12 billion holiday and per-person spending has more than doubled since 2005, yet the haunted-house business inside it is structurally awful. How can a growing market still be a bad business to be in?
- A build costs $250,000 at industry average and $1.1 million at the high end — comparable to opening a Subway — but it earns for a few weeks a year. How would you finance that, and who would lend?
- Ohio has 135 attractions because commercial property runs $181 a square foot against $1,414 in California. Where else does a business locate on rent rather than on customers?
- There are more haunted attractions than amusement parks and almost no coverage of the industry. What does obscurity do to competition, pricing, and talent?
- You own one. What do you do with the building for the other eleven months, and does that answer change what you build in the first place?

## Sources

Holiday and per-person Halloween spending from National Retail Federation data; attraction and haunted-house counts by state for 2024; commercial property prices per square foot from Crexi; build costs, square footage, revenue, operating expenses, and margins disclosed on camera by the owners of Chippewa Lake Slaughterhouse and Nightmare Cleveland; theme park operating margins from company filings; franchise startup costs from franchise disclosure documents

---

From [Modern MBA](https://modern-mba.com/). Read this case in full at [https://modern-mba.com/case/haunted-houses](https://modern-mba.com/case/haunted-houses), or watch the episode at https://www.youtube.com/watch?v=7tljAmEe1YQ.