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This topic comprises 4 pages: 1 2 3 4
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Topic: Auditorium Mess, getting worse ?
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Lyle Romer
Phenomenal Film Handler
Posts: 1400
From: Davie, FL, USA
Registered: May 2002
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posted 05-12-2006 01:16 PM
Mike,
I do understand the business. Concession isn't free. I haven't seen exact numbers in a while but isn't concession cost of goods sold about 17%?
On average, for multiplexes showing mainstream content, film cost is usually 50-55%. I'll use 55% in this example. I don't know what a good per cap is right now but let's say $3.50.
So, using these numbers direct concession profit per person is about $2.90. Using 55% film cost, to directly make up this amount would be about $6.44 needing to be added to each ticket.
BUT, not operating a concession stand at all would reduce your overhead. Utilities would go down from not running the equipment. Payroll in a large multiplex would go down. 10 years ago, an 8 plex doing good business averaged about $1 per person in payroll expense. I'd imagine that that is about $1.50 now with minimum wage increases. If you could cut 2/3 of your payroll (obviously in a single screen like yours you couldn't but I'm talking multiplex here) by not running a concession stand, hitting the same gross profit would take a price increase of around $5 per ticket.
Saying that I've always wondered doesn't imply that I'm ignorant, just that I've wondered but never calculated. Now I've calculated and don't have to wonder anymore. If any of my assumptions are off, please correct me.
quote: Mike Blakesley
And -- you act like "cleaning up your mess" is a big deal
I never said it was a big deal. It's the principle. At the major chains around here a small (or regular as they sometimes call it) drink and popcorn is going to run you over $7. If I'm going to pay to subsidize the admission tickets of the people not buying, I feel like I'm entitled to some kind of service.
Maybe I'd feel differently if they had consistant presentation or policed the shows so that people didn't have crying babies (complete with tossing the baby in the air during the show) ruining "United 93".
Since I'm not getting any customer service for my ticket price, I should at least get some service for my concession subsidy.
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Jack Ondracek
Film God
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 05-13-2006 01:29 PM
quote: Lyle Romer
Fast food is completly different. At McDonald's I always clean up after myself. That's because I paid so little for the food, I don't expect it to come with service. When the food is ridiculously overpriced (which cinema concessions are) I consider that part of that charge is for convenience. Part of the convenience is getting hot popcorn and cold soda but part of the convenience is not having to clean up after myself.
We used to have a lot of customers out at our drive-in who thought like that. Thank goodness they now go elsewhere.
Having rid myself of the slobs who think they should be able to dictate the conveniences I provide, my business is now much more pleasant... for me, my staff, and the customers who replaced the inconsiderates who used to just toss their trash out the windows.
You can't do that anywhere else. I see no reason why it should be acceptable at a theatre... indoor OR drive-in.
BTW... I doubt that lowering concession prices would get the idiots out there to even THINK about picking up after themselves. Does anyone really believe these people are thinking, "my soda was too expensive. I think I'll just kick the cup down the floor & let the theater clean it up. THAT'LL show 'em!"... Nope... that would use too much mental energy.
I will say though, that I've never really understood why the "big guys" don't do more to monitor their auditoriums. Most of the indies I know run a tight ship. As far as I can tell, people do appreciate and respond to a reasonable set of behavioral policies.
I'm guessing though, that the chains don't want to see emailed complaints from the unhappy patrons who think their ticket price entitles them to act as they please. I suppose it's also possible that the corporates worry about managers getting too aggressive & causing lawsuits from ejected patrons. So... accept the bottom of the barrel. You've got the film, people WILL show up... that's good enough... leave 'em alone.
BTW... NATO's John Fithian is now saying that the majority of theatre patrons LIKE the advertising & 6+ trailers before the show.
...no wonder this business is so screwed up.
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