Since we have been in business we have been surprised with some truths. We are trying to run this theatre on the up and up. First year we grossed $1 million dollars and managed to lose only $60,000 of it. This past year we grossed $1.4 million and eked out a profit, which the government took 40% of. This year we are on track to double our business and profit. It is very unusual for a new business to profitable in its second year; this bodes well for our future. By all accounts we are wildly successful. Our investors are happy, the film companies are happy and yet there are a few problems.

Sonoma County being so high rent, I am unable to purchase a home here. I can't at the moment afford new car payments. Thank God I don't have any children, as I would be unable to afford to raise them. My 15 years on the film exhibition industry have taught me some facts. It is very hard to get rich in this business where everybody is in for a percentage. Economies of scale rule. This is why everybody is building 14-plexes and more. So unless you get that single screen theatre for a laughably low rent or lease, I don't see anybody making enough money to cover expenses with film.

Now, I am totally ignorant on the economics of running a bar. Perhaps a bar alone would be sufficient to cover expenses and return a profit. But even most bar owners and restaurant owners I have heard are successful run multiple locations. That will be our secret to success as well.

With one exception, I am unaware of a for profit single screen theatre opening in my lifetime. I have seen single screen theatres opened and quickly closed again. I have also seen exactly two single screen theatre restored to their former glory and run as non-profits. The one exception is a single screen art house a guy opened in Oregon. He built it in an old gas station and is able to run it himself, so his staff costs are very low.

Thanks for responding. To answer one of your concerns: Yes, rent is ridiculously cheap. Real estate is ridiculously cheap. In fact, I am looking into buying a 10,000 S.F. concrete and masonry building built in 1904, fully sprinklered and with 600 A / 240V 3-phase electrical service. There is a lot of ornamental stonework around the facade. Also includes a 2-car garage (!!). There is an empty parking lot half a block away. Anyway, the price? $175,000. Now, I haven't conducted any feasibility studies, but this is to give you an idea of basic cost. I am figuring an additional $125,000 for renovations and equipment. This is totally just a ballpark. But in St. Louis you can buy historic buildings in redeveloping areas for pennies on the dollar. There are several large commercial buildings available in my neighborhood for under $80k. I guess this overabundance of real estate is one more reason why the idea of a cinema/bar interests me...

...as far as programming. If I were to run programming similar to Ragtag Cinemacafe, yes I would be competing with Landmark Theatres (which I used to work for). Something to think about. Is there such a thing as a second-run arthouse?

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Landmark recently took over a single-screen in St. Louis -- one with some history behind it, I might add.

Yes, very nice, I checked out the pictures as well. It is good to hear that you have loyal customers and that your attention to detail is appreciated. I am hoping that my concept will also attract a crowd that wants a more unique viewing experience and takes pride in supporting a local independently-owned operation. The style of my theatre, of course, would be completely different, but in its own way, unique. I am looking at a building tomorrow that looks very promising.

Charles --

I'd love to hear about the project in New Jersey. I will e-mail you off list. I'm aware of the Hi-Pointe sale and have to admit that I was disappointed to hear that Landmark is expanding in my area, because of course that means more competition. There is another historic theater in town called the Avalon that is now under review for restoration, though the plans are in their early stages and definitely not a sure thing.