Jasomania said:
Quote:
The theaters that sell real food are the ones that stand to hurt the most from all this because while the food is still more overpriced than same quality elsewhere, the margins aren't anywhere near what the margins are for your run of the mill AMC that sells a Large Popcorn+Coke for $14.50.
I think the Drafthouse / SMG theaters will wind up doing better with movie pass. I see your argument that the margins on food are lower but I know for myself at least I'm still spending way more at Alamo Drafthouse for food than I am for concessions at a normal theater. Personally I almost never get concessions at a normal theater but always get food at the Drafthouse / SMG. Not only that but almost everyone in the theater at SMG or Drafthouse is ordering food and can order alcohol which has huge margins on it. In general the tickets at Drafthouse / SMG are generally cheaper than the normal theaters anyway and they do free movies or old movies for like 5 dollars all the time just to get people in the door, knowing even if its a loss on tickets sales food sales will make up that money.
I also have a hard time believing theaters would give up any concessions sales. I've worked at theaters in college and concessions are not just the main source of profits but are generally the only source of profits. Ticket sales like you said are split between the theater and the movie companies and the money the theaters make off tickets go to paying employees and paying the bills (rent, utilities, maintenance, etc.).
Concessions are high profit items.
That large coke may cost them $.02/oz but a 44oz Coke with ice is really like 25oz of drink. So that's 90% profit. Similar on popcorn.
If people are willing to spend $4 more per person would a theater give $2 to make that happen? Absolutely every time. Simple business decision when that $2 is more than enough to cover your expenses and still generate profit.
But the theater would rather put out its own app and get 100% of it, but they have to do it better than MoviePass.
I know all about the costs - this all came from someone that owns multiple theaters.
I'm opposite of you. I almost always get popcorn and a drink. But I don't really like going to most food theaters because the food is generally not that great. Most theaters now offer beer. I know the Showbiz by my house is small, but they offer alcohol, ice cream, burgers, tenders, etc.
