Once you start and 2 mins are up and brings you back to the menu can there be a progress area at the select screen where you unlock item's and new area's or it has to be the same like a arcade ?
2 minute loops to progress a larger game go against the theme. The idea with the jam is to tell a story as short as possible.
A "For Sale : Baby shoes, never worn." "Lost Dog : never found" type deal.
You can implement additional gameplay like new items and areas outside your core 2 minutes, but those 2 minutes should be considered a complete EXP without a replay.