In today’s age of powerful personal computers and smart devices, LAN cafes might seem like relics of the past.
But to Allen Zhao, co-founder of Elixir Esports, that perception couldn’t be further from the truth. In fact, he believes that the LAN scene in Singapore is actually thriving and more profitable than ever.
Having been in the space for a decade, business is booming for Allen. We spoke to the 33-year-old about his journey and how he’s grown Elixir Esports’ foothold in Singapore’s evolving LAN landscape.
Modest beginnings
Elixir Esports began in 2015 as a modest gaming joint in Jalan Besar. Back then, it also operated under a different name: Galaxy Gaming.
Allen co-founded the business with two other partners, and together, they set out to build more than just another LAN shop—their vision was a premium gaming café where players could enjoy not only high-end machines, but also good food, drinks, and comfort for marathon gaming sessions.
The trio’s attention to hospitality soon paid off. In 2017, the their concept caught the attention of Wanyoo Esports, a Chinese cybercafé giant looking to enter the Singapore market.
Wanyoo approached Allen and his co-founders with a franchise offer, prompting them to close Galaxy Gaming and launch two Wanyoo outlets, at Beauty World and Lavender.
Even as franchisees, Allen and his team retained full creative control. Having grown up in Singapore, they understood local gaming habits and tailored Wanyoo’s concept accordingly. From marketing to operations, the brand’s Singaporean DNA remained intact.
But ultimately, their goal was to create something of their own.
That dream came full circle in September 2024, when the trio decided to part ways with Wanyoo officially and launched Elixir Esports, retaining the two original outlets at Beauty World and Lavender—and less than a year in, the business has already doubled its presence.
More than just a gaming hub
Step into Elixir’s outlets and you’ll find yourself in a sleek, futuristic spaceship-like environment decked with figurines and gaming peripherals.
But beyond the flashy aesthetics, comfort remains at the heart of the experience—staying true to the trio’s original vision from the outset.
“People aren’t just paying for a computer,” said Allen. “They’re paying for comfort, ambience, and a place they can unwind and stay for hours.”
At Elixir Esports, customer service goes beyond expectations to create a welcoming space. From bell service for on-demand assistance to thoughtful touches like blankets, slippers, and complimentary fresh fruits, the trio aimed to replicate hotel-level comfort in a cybercafé setting.
More than just gaming hubs, each Elixir outlet is also designed to be a multi-purpose social space. Beyond high-end PCs, visitors can enjoy card games and next-gen consoles, or chill with friends around a full-sized billiards table. There are even arcade machines to cater to nostalgia lovers.
For those not in the mood to game, large 100-inch TVs stream live tournaments and popular broadcasts.
During major events like Taylor Swift’s Eras Tour or Lady Gaga’s concerts, Elixir’s outlets unexpectedly became rest stops for tourists and fans. Running 24/7, they offer reclinable sofas, private rooms, and high-quality service (minus a shower, for now)—a competitive alternative to budget hotels.
“In those periods, our outlets are fully booked one to two months in advance,” Allen said. “People are happy to pay S$50 to S$60 a night to rest, recharge, and game a little.”
Business that makes sense—and cents
While S$50 to S$60 a night can feel like good value for the comfort, there’s no denying that Elixir’s hourly rates are relatively steep compared with other LAN cafes, which generally charge around S$4 per hour.
The cafe also offers membership packages with added credits and perks that provide better long-term value—but these, too, come at a slightly higher price point.
However, Elixir’s pricing strategy reflects the trio’s belief that people are willing to invest in their hobbies, especially when they perceive genuine value in return.
And true enough, their cafes have become regular spots for many to rest and unwind after a long day of work or school, with each outlet generating about S$150,000 to S$200,000 in monthly revenue.
While the majority of their customers are aged between 15 and 32, Elixir also attracts a diverse range of patrons.
Notably, Singapore’s team of elderly esports players, known as “Squad 2×2,” are loyal customers of the brand. They spend their days training at Elixir and compete in Counter-Strike 2 tournaments.
Nurturing Singapore’s esports ecosystem
Given its strong growth, Elixir’s expansion shows no signs of slowing. Allen revealed that developers have approached him with offers to open more outlets across malls throughout Singapore, though he did not disclose further details.
Beyond expanding the business’s footprint across Singapore, though, Allen shared that the Elixir Esports team has been in discussions with government agencies, including Minister of State Alvin Tan, as part of the government’s efforts to expand education efforts and promote esports in Singapore.
The business’s values aligned closely with the government’s efforts, which led the latter to reach out for their expertise.
In 2023, Singapore hosted the inaugural Olympic Esports Week, which was a milestone in Singapore’s positive posturing towards video games and esports. The government has since been actively hosting major esports events and collaborating with community partners to cultivate Singapore’s growing esports hub while engaging youth in national initiatives.
Building on this momentum, Allen revealed that plans are underway to introduce esports programs into community centres, aiming to bridge grassroots recreation with professional-level play.
Beyond working with the government, Elixir Esports also sponsors foreign and local esports teams like dream[S]cape to train for esports competitions including The International 2022, and even co-hosted Zowie eXTREMESLAND 2024 that featured a US$100,000 prize pool, held at Elixir Esports’ Holland Village outlet.
Taken together, these efforts reflect the business’s broader mission.
For Allen, Elixir Esports is more than just a business—it’s about building community, and showing that gaming can be a legitimate and viable career path.
- Learn more about Elixir Esports here.
- Read more stories we’ve written on Singaporean businesses here.
Featured Image Credit: Elixir Esports