The Economics of Everyday Things

115. Miniature Golf

November 17, 2025

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  • The upfront investment to design and build a modern, feature-rich miniature golf course typically ranges from $300,000 to over $2.5 million, though owners often recoup this investment within the first two years. 
  • Miniature golf course construction is a specialized industry involving landscape architects, custom design software, specialized tradesmen for rock work, and high-grade turf installation, with costs for elaborate features like a volcano reaching up to $600,000. 
  • Despite the high initial cost, the operational economics of miniature golf are highly favorable due to low variable costs (negligible cost of goods sold for the activity itself) and low daily break-even points, though maintenance, especially turf vacuuming, requires significant manual labor. 
  • The industry is experiencing high demand, partly fueled by a post-COVID desire for outdoor activities, and features around 5,000 courses in the U.S. generating over $2 billion in annual revenue. 

Segments

Introduction to Surfs Up
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(00:00:00)
  • Key Takeaway: The episode introduces a specific, highly themed mini golf course owner, Mike Matzinger, highlighting the ‘wow factor’ investment.
  • Summary: The segment opens with dramatic sports commentary before transitioning to introduce Mike Matzinger, owner of Surfs Up mini golf in Carolina Beach, NC. He describes his course’s surfing theme, featuring a 15-foot animatronic octopus costing $20,000, and notes that good golfers often get humbled by the challenging course design.
Mini Golf Industry Overview
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(00:02:48)
  • Key Takeaway: The mini golf industry is quirky, involves complex construction, and offers high potential profitability due to low marginal costs per play.
  • Summary: The transcript notes there are about 5,000 mini golf courses in the U.S. It emphasizes that building a course is complicated and expensive, but once operational, the marginal cost of an additional player is near zero, making it potentially very profitable.
History of Miniature Golf
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(00:03:38)
  • Key Takeaway: Mini golf evolved from traditional golf in the early 20th century as a way to play in smaller, urban spaces, gaining major popularity in the 1920s (Tom Thumb golf) and post-WWII era (1950s).
  • Summary: The segment traces the origins of golf in Scotland and the subsequent need for smaller versions as populations urbanized. It credits Tom Thumb golf in the 1920s as the business venture precursor, followed by the surge in popularity in the 1950s with chains like Putt-Putt and themed gimmick courses.
Harris Miniature Golf Design
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(00:05:15)
  • Key Takeaway: Modern courses are larger (around 18,000 sq ft) and feature more natural elements like water features, moving away from classic gimmicks like windmills.
  • Summary: Sal and Katie Conaboy of Harris Miniature Golf discuss modern course trends, emphasizing water features, streams, and sand traps over older gimmicks. Harris has built over 900 courses globally and serves both standalone operators and facilities like resorts and campgrounds.
Course Design Process and Cost
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(00:07:54)
  • Key Takeaway: Course design is a custom process involving landscape architects, balancing difficulty for all ages, and requires careful sequencing of holes to manage traffic flow.
  • Summary: The design process starts with a topographic survey, using software like AutoCAD. Designers must balance difficulty—easy enough for kids but challenging for adults—and sequence holes to prevent traffic jams. Signature features, like a stream hole that hides the ball, are often reused.
Construction Costs and Timeline
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(00:11:17)
  • Key Takeaway: Construction takes 4-6 weeks, involving specialized tradesmen for rock work, and the total build cost ranges widely from $300,000 to $2.5 million.
  • Summary: The construction phase follows the 2-3 week design period. Specialized crews handle concrete, water features, and elaborate elements like a $500k-600k volcano. Turf installation is a specialty itself, costing around $30,000 for a 20,000 sq ft course. Owners typically recoup their investment within two years.
Operator Economics and Revenue
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(00:17:33)
  • Key Takeaway: Mini golf offers low daily fixed expenses (breaking even at $500/day for one course) but is often highly seasonal, requiring significant maintenance.
  • Summary: Mike Matzinger details his $2 million investment (land + $500k build cost + tiki bar). Pricing is location-dependent ($15 in tourist areas). He learned quickly that he needed far more putters than initially calculated (200 vs. 90). Fixed costs are low, but maintenance, especially vacuuming all 18 holes twice a week, is significant labor.
The Appeal of Mini Golf Business
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(00:24:29)
  • Key Takeaway: The enduring appeal of mini golf lies in its social, non-digital experience, driving high demand for new course construction post-COVID.
  • Summary: Despite some experimentation with digital scorecards, most customers prefer the traditional experience. The Conaboys note that demand for building courses is higher than ever, fueled by people seeking outdoor, social activities following the pandemic.