A former Pita Jungle space on Tempe's Mill Avenue has a new identity: Level 1 Arcade Bar opened its latest Valley location on Friday, Nov. 13, bringing 22 arcade games, 13 pinball machines, food and cocktails to the 5,500-square-foot spot at University Drive and Mill Avenue. The bar is open daily from 11 a.m. to 2 a.m., and its grand opening celebration kicked off at 8 p.m. Friday with food and drink specials, giveaways and live music.
According to Phoenix New Times, co-owner TJ Tillman said Mill Avenue's popularity made it a no-brainer to open there, and that the venue gives downtown bargoers something to do besides drinking and dancing. Tillman came from the investment world, while co-owner Scott Goldsmith worked in marketing before the pair launched the arcade bar concept together. The Tempe location marks Level 1's third Valley outpost, following an original spot that opened in Gilbert's Heritage District in December 2019 and a second location that followed four years later in downtown Mesa.
A Former Restaurant Gets a Retro Makeover
The Tempe bar occupies a converted vacant restaurant space previously home to a Pita Jungle, according to The Arizona State Press, which reported that Level 1 would serve an array of appetizers, tacos and bowls alongside its games. The Level 1 website lists the new address as 4 E University Dr, Tempe, AZ 85281, and notes that the Mill Avenue game lineup rotates often, encouraging visitors to check back each month for what's currently on the floor, per Level 1 Arcade Bar. Guests under 21 can visit with a parent or guardian before 7 p.m., after which the venue becomes 21 and up, according to Mouth by Southwest.
Gilbert's Loss Wasn't About Business
Level 1's original Gilbert location closed in early 2025, but the station's report makes clear that wasn't due to weak business — Tillman and his fellow owners simply couldn't reach a new lease agreement with the landlord after their original five-year lease expired. Mouth by Southwest separately reported that another Gilbert location is scheduled to open at The Gilmore in 2027. Meanwhile, Phoenix New Times reported that the Mesa location has continued to do strong business.
Mill Avenue's Shifting Lineup
Level 1 is arriving as part of a broader wave of new tenants along Mill Avenue. The State Press reported that incoming businesses include bars and entertainment spots like Carmen, Trophy Tempe and Level 1 itself, alongside restaurants and dessert shops such as Goat & Ram, Jeni's Ice Creams and Culinary Gangster. The outlet also noted that the city's $40 million downtown refresh project is now complete, with businesses taking their pick of vacant spaces.
The changing business mix coincides with shifting demographics and drinking habits: only 50% of adults ages 18 to 34 reported actively drinking in 2025, nine percentage points fewer than in 2023, and Tempe officials say 18- to 24-year-olds make up less than 18% of downtown Tempe's population while 25- to 34-year-olds make up nearly 23%.
Not Everyone Survives the Arcade Boom
The arcade-bar trend has produced winners and losers across the Valley. Phoenix New Times notes that Cobra Arcade Bar popularized the concept locally after debuting in downtown Phoenix in 2016, and that Tempe already has competition in Electric Bat Arcade, a wildly popular spot for classic coin-operated games, and Night Owl, south of downtown, which boasts seven pinball machines. But the same outlet reported that The Grid and Endgame in Mesa, along with Player 1 Arcade in Surprise, have all closed in recent years.
Despite those closures, Tillman doesn't think that's a sign the arcade bar concept is dying off in the Valley anytime soon. He has said Level 1 can compete through its game selection and atmosphere — a bet now playing out in a 5,500-square-foot space on one of Tempe's busiest strips.
