The only way a no-frills arcade can make money consistently in the West is by hauling a ghetto setup through deep rural regions. It's more trouble than it's worth. The business model of renting out cabs to laundromats died of natural causes, don't even think about it because you'd go bankrupt. Stay away from pinball, it's too high maintenance.
If you want a stationary venue, you need added value to convince people to come to you instead of emulating the same games at home. That's where those arcade bars are coming from. You can't get a social experience at your laptop. Think along these lines. You'll want to build a community and invest them in your operation to an extent. A pub that opens up won't steal patronage from the one across the street because that patronage is socially glued and attached to their hangout, if it's any good. If you have FGC in your area, invite them to practice at your joint. Hold events and small tourneys. Overlap some of the dates so events can feed participants to each other. You won't be able to directly compete with mega mall arcades, but you can be a more convenient, fun hangout.
Ultimately you want your business to be asymmetric to your competition. This makes it invaluable and making yourself invaluable is the best way to retain patronage. It's also a good way to future proof against others who might have similar ideas but more cash.
A wide range of small incentives can go a long way. Keep a public high score list and hand out rewards for setting records. Cash rewards for WRs (not like you'll ever have to fork them out). Maybe collect votes for game rotation in your cabs. It costs you nothing and helps build patron investment. Benign quirks generally lead to good word of mouth for a business, so drum up as many as possible that aren't obnoxious. You want your regulars to feel like they're a part of the place, and they need to have some say for that.
You want to be seen as providing an experience that others can't. In the nineties, the most successful arcades weren't necessarily the ones that were best located. They didn't really need to have the newest cabs. Two or three good games were enough to be popular, but between two good arcades it was the one with the best atmosphere that you went to, even if it meant a longer ride. That's where friendships were made. These days your library matters less than it would 20 years ago. Kids won't ride the bus for four stops just to play Mortal Kombat 2. Adults won't either. Cutting edge cabs won't return your investment. So you want to focus on your location and any added value you can provide.
Your library will be good enough if it has popular tourney games. Pricing is more important. A first time patron who plays for three minutes on a half dollar is less likely to return than someone who plays two games for a quarter each. The relation of time and money is different in an arcade than in the world outside. Managers who don't understand this go out of business. Newcomers must feel they can let themselves get hooked.
When you're in entertainment, you want your patrons to stay at your venue for as long as possible at a time. People who leave a cinema don't return the same day and they won't return to an arcade either. Always assume they won't be back until next weekend. You need them to have close access to food and a shitter. Consider partnering with nearby restaurants for any events. If you play your cards right they can feed you spectators.
You'll still go bankrupt, though.