Little things like free food and ping pong tables actually offer a massive return on investment.
Yes, provided everything else about the company is working. People are productive. The product is showing signs of fit. People believe in the founder(s)' vision and in the CEO's direction. Under these circumstances, things like ping pong tables and free meals can offer amazing ROI.
But when your first few business moves are shopping for fancy digs and filling the space with ping pong tables, your priorities are questionable. Morale can't be bought with trinkets. Morale is earned with a strong sense of collective mission and product traction. The rest is icing on the cake.
This distinction is often lost on people, who rush off to buy foosball tables as though the mere presence of such will trick employees into being happy and productive. It's a very '90s attitude: "People want to work for a startup that looks startupy." Well, sure. But the best people want to work for a startup that has a real shot at success, first and foremost.
That's a rather strong assumption.
1) Playtime is for after hours, with friends and family. Ping pong's a fun game but it's noisy and disruptive when you're trying to get work done.
2) Don't care about your free food, I have a strict diet and don't usually eat lunch. Ditto free booze which is frankly a dumb idea (see 1). Free non-alcholic drinks is fine.
As a whole, though, I think people, especially in our industry, aren't stupid. Free food would certainly be a more competitive retention factor (than ping pong) -- barring that your company's biggest competitors in terms of hiring aren't also offering free food.
But, given these things are so difficult to deliver on, let's just throw them kids' games, energy bars and craft beer on tap.
"Hey, we have a dysfunctional CEO, a runway shorter than the one at Hong Kong airport, and a legacy codebase that reduces the most experienced developer to a gibbering wreck. But look - we have foosball and whiskey tasting nights!"
Juvenile, shrug - I guess I like a juvenile working environment.
> Startups pay up to $2,300 for a high-end Butterfly-brand table.
Your point stands, but the pricing is quite different.
In previous company, it was a pool table and game room with Rocket League. In one before that, foosball. Regardless of the game, having some game that is played regularly by coworkers together really helps to build positive relationships and create a team. Definitely worth investor's money.
"Venture capitalist Michael Cardamone, the tournament’s co-organizer, approves of young companies buying tables with venture funds. “You absolutely should,” he says. “It’s part of building culture.”"