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This theatre did good business on weekends, but was dead on weeknights (as are most theatres most of the time). The idea of having one kids' show and one adult show would not work as well as having a kids' show for the early showing in one of the auditoriums. Kids' shows generate very little 9:00 attendance.

I think opening this theatre would draw some customers there, but he'd have to make a pretty good profit off of each to stay in business. I doubt the $1.50 each for drink and popcorn would do much for him in that area, althought the customers would probably go for it. The manager at that theatre once told me that people expected cheaper concession prices at a second-run theatre as compared to a first-run theatre, and she got complaints about it.

I wonder if when the guy adds up the total cost of fixing up the place and operating it, if he'll still go through with it. I'll bet he'll have to charge more than he's currently thinking. I'm amazed that the theatre stayed in business as long as it did charging $1.50 per admission. The concessions were the same price at that time as the other Regal theatre, and I cannot remember the prices off the top of my head, but I know it costs more than $5 (maybe $6) to get a medium drink and popcorn.

I personally, am turned off by the extremely high concession prices and I seldom buy those items. Something needs to change so that theatres can start charging sane admission and concession prices. It affects families more than single people. I don't remember ever sneaking food into a theatre (although I may have at some point more than 5 years ago), but I know many people that admit to doing it. It bothers me (and many others) that a Coke and popcorn costs more than I can get a meal at many fast food restaurants.

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Evans A Criswell
Huntsville-Decatur Movie Theatre Info Site

Evans, I agree about the high concession costs. I pucker every time I shell out for the stuff at the stand.

Flat out, the only way a theatre like the Gateway could even hope to re-open is with a landlord that is willing to lease deeply below market value. In some cases, the theatre may be valuable enough to a shopping center that this is do-able. Some landlords are now realizing that when the anchor theatre leaves, often other tenants leave as well.

$1.50 is a totally unrealistic price for drinks and corn, much like the thinking of a store owner who sells all his items at a loss and hopes to make it up in volume.

People tend to think that the fixed COG (cost of goods) is the only cost to selling an item. It is just the tip of the iceberg. There is the cost of the water, the cost of the power to make ice, the cost of the labor, the cost of the insurance, the cost of licenses, the cost of money (could a greater profit be made just by investing in a secure fund?), cost of office overhead, cost of toilet paper, etc.

If I talk to the guy again, I'll try to find out more about why he wants to reopen that theatre. He will have to work out budgets for initial setup and for operations and maintenance. If he does that, it should become clear to him whether his idea will work or not. I can think of many risks he will have to assess.

1. The projection equipment company he's wanting to use is run by a man with many years of expertise, but he is at least 82 years old. Would his decline in health or death create a huge extra expense for theatre equipment maintenance?

2. Attendances may not be at the level he expects. (Woudl be a disaster regardless of profit per customer.)

3. Start-up expenses and/or operating expenses may be much greater than expected. (This would kill it from the start.)

4. Ticket and/or admission prices may have to be much higher than people would be willing to pay at a second-run theatre. This would defeat what he's trying to create as "a cheap place to take the family out to the movies".

5. The delay in getting second-run movies after initial run is greater than it used to be, so people may not be as interested in seeing the movies once he is able to get them.

6. Having one adult show and one children's show at all times will create extra work in making sure that underage people don't buy a ticket for the PG show and go in the R show. The previous manager told me that they could not run R rated movies in the house that had its door next to the restroom door because kids would go to the restroom and then walk right into that auditorium, and those doors were not in view from most of the lobby.

7. The shopping center did not allow the Gateway to put their sign back up on the main facade after the shopping center was remodeled. Not being able to have a sign advertising the movies showing will hurt the place. Serious advertising would be necessary just to let people know the theatre is open again.

8. The air-conditioner compressor went out, which was the reason given for the theatre closing previously. It was to cost $7000 (what I heard) to fix.

9. The shopping center was recently remodeled and the rent wanted has probably increased. From what I've heard previously, the shopping center management seems generally indifferent about the theatre. One person had already thought about reopening it but the rent was too high.

10. If not enough effort is put into presentation quality and cleanliness of the place, people may not come back, even if the cost is cheap.

11. The building originally opened in 1967. There may be significant structural problems that may need addressing. (roof leaks, etc.)

Reopening this place would be a huge undertaking. The per-cap from concessions would have to play a major role in generating profit. I just don't see it working.

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Evans A Criswell
Huntsville-Decatur Movie Theatre Info Site

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Niche market can work if conditions are right, but it doesn't appeal to the family crowd. The movies require thinking and often some depth knowledge of current events, history, psychology, or film conventions. I'm waiting to see what the Enzian, here in Florida is lining up for the film festival this year. There is a tremendous amount of work in building an audience, and many wanna-be art theatres could take lessons from the examples there.

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Theatre concessions aren't as high as you think they are when looked at the alternatives. Those $3.30 drinks at the race, along with those $5 hot dogs easily double our prices..

And please, we all know that concessions are the main survival tool/profit center for exhibitors. I, myself, would love to see our prices come down a bit. The way I see it, I have a lease to pay, but I don't have to make it off of one large popcorn, ya know?

After 13 years in the business, I have yet to determine which is the lesser of two evils, raising concession prices or ticket prices. Speaking of, our adult price increases today, 5-18-01. Just in time for Pearl Harbor next week and the onset of summer business..

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I go to the movie theatres simply because I enjoy going to theatres more than the average person, for several reasons.

1. I enjoy the theatre experience when done well, since it is my only opportunity to see the movies at 35mm resolution on large screens.

2. I find movie theatres interesting. (Theatre-Geek is the proper term?)

3. I've taken it on myself to rate the projection quality at each theatre in my area, which forces me to distribute my visits fairly evenly among the local theatres. Sadly, this is my primary reason for visiting a couple of the theatres in my area.

I don't buy concession items very often because I usually go to 7:00ish showings and I typically eat dinner between 5:30 and 6:30, so I'm not hungry at that point. When I'm faced with the option of buying a full meal at Piccadilly Cafeteria for around $7, a fast food meal somewhere for under $6, or eat popcorn and have a Coke at the theatre for around $6, it's not too touch a decision. I'm more likely to buy them if I go to a 4:00ish showing or a 9:00ish showing.

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Evans A Criswell
Huntsville-Decatur Movie Theatre Info Site

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quote:

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I would find it hard to believe that anyone could go their whole lives without seeing a movie in a theatre.

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Well, you have people like my parents who haven't been in a movie theatre at least since before I was born. That's nearly 33 years. Because of the way they were, I didn't get to go to a movie in an indoor theatre until the let me see E.T. in summer 1982 after I begged them to let me see it. I saw it at the West Theatre in Cedartown, GA. It was terrible as a kid to see ads for movies I'd love to see and know I'd never get to see them until they were shown on TV.

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