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This topic comprises 4 pages: 1 2 3 4
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Topic: How do you buy a movie theater and get into business on your own?
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Tony Bandiera Jr
Film God
Posts: 3067
From: Moreland Idaho
Registered: Apr 2004
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posted 11-17-2010 02:47 PM
Todd, Bill's anecdote may have been a bit harsh, but if you think that was too much to handle then don't even try to open a theatre.
With the current trends in the industry, the economy in general and the FACT that theatres traditionally make little or no money (many chains have several locations that operate at a big loss, it is the others in the chain that sustain them) you are looking at one of the worst possible investments from a fiscal standpoint.
I have a colleague who "inherited" an older twin in Illinois and it has been a major money pit, despite some successful live events and film programs he has held there. Only the very low purchase price and the fact that he has disposable income has allowed him to sustain it.
I too have always wanted to open and run my own theatre, but when I really dug into the nuts and bolts of it I realized that, unless I either was given the property or had a super-cheap lease it would have been financial suicide. The mall situation you mention is very unlikely to have a cheap lease...and if the lease is cheap it means the mall is having financial difficulties.
For a mall location, you MUST have the support of other stores, food court, etc. to help bring in the crowds, otherwise you'll die a quick death. That happened to malls in Buena Park and La Mirada California.
Despite what "Field of Dreams" would lead you to believe, if you build it, they won't always come.
With all that said, I do hope you find the right situation and prove me (and a lot of others) wrong. ![[Big Grin]](biggrin.gif)
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Mike Blakesley
Film God
Posts: 12767
From: Forsyth, Montana
Registered: Jun 99
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posted 11-18-2010 01:24 AM
Well...I guess we have beaten the odds here, but we have a few things in our favor. First, the theatre was built well to start with, so we haven't had to do any major changes to the building. Almost all money spent has been on improvements.
Other than that, I think an indie can still be successful if you follow these thoughts:
- Don't be afraid to charge high enough prices, both at the boxoffice and concession stand. If your business plan is to annihilate the competition with your low prices, just go ahead and set fire to your money now.
- If you're doing mainstream films, you HAVE TO play movies on the break. If you plan to wait until the percentages come down for anything but non-hits, might as well just head straight for bankruptcy court.
- But, if you only have a couple of screens, don't try to play everything on the break. My guideline here is to try to play as many of the "hyped up" blockbusters on the break as I can. The smaller films and sleepers can wait a couple of weeks and sometimes might even do better if you wait a while (think "The Blind Side").
- Don't hire a bunch of teenagers to run the place for you. Your audience will react favorably if they see the OWNER in there selling tickets, working the concession or whatever. Go ahead and hire teens to work, but keep after them to NOT act like typical mall rats. Be very picky about who you hire.
- Keep the place as clean as you possibly can.
- You must have digital sound. If you find a place that has decent film equipment, but analog sound, that's the ONE thing you absolutely must upgrade to ASAP. "The audience is listening," indeed.
- Remember that the movie business does not have holidays. Don't run the place at your own convenience. If you don't love the movie biz, you shouldn't be in it because you will lose your dedication. Work hard, but take time off occasionally to keep your sanity.
- Be personally involved with your schedule. Don't just let your booker tell you what's playing. Study the upcoming product so you'll know what to tell the booker you want to play. Also, listen to your booker; he's been in the business a long time and may surprise you with his knowledge. But over time you'll get to know your own market as well, or better, than he does.
- Listen to your audience, but don't listen too hard. Some people think you need to bring in a Barbra Streisand Film Festival over the holidays. Incorrect.
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Jonathan Smith
Expert Film Handler
Posts: 201
From: Youngstown, OH
Registered: Jan 2010
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posted 11-18-2010 02:01 PM
I don't know the size of a place like Forsyth, Montana, but if you are near a major metropolitan area, I would say six screens is the bare minimum to eek out a living as a first run. Eight would be better.
Unless you are showing art films or something that has a specialist appeal, or a classic or 2nd run format, it is really really tough to get a movie, with a guaranteed showing of two weeks, that tanks. The multiplexes can deal with one screen being dead, as that is a small percentage of their total screens, but when it is a half or a third of your seats that are empty, that can turn two weeks into a total loss.
All of the small or independent small theatres around here, even an 8-plex are struggling just to stay open.
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Robert E. Allen
Phenomenal Film Handler
Posts: 1078
From: Checotah, Oklahoma
Registered: Jul 2002
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posted 11-18-2010 03:31 PM
It appears to me that when many people talk about running a theatre they always refer to "first run". I've come to the conclusion that for them "first run" means "whatever Hollywood is promoting because I don't have the desire or knowledge to book outside the box and do my own promoting". It seems those people assume "first run" is the only way to successfully run a theatre. To them I would say do a little more research and learn more about the business, about your potential audience and about the many successful theatres that run something other than whatever Hollywood is promoting at the moment. What Hollywood has done in recent years is limit their customers to a particular audience (usually those who prefer violence, sex, profanity and amoral subject matter). Most theatres allow themselves to be nothing more than an extension of the studios (it used to be such theatres were actually owned by the studios) and then complain when they don't make much profit. I will usually advise someone wanting to open a theatre in a competitive situation to "be different" from the competition. "First run" does not guarantee success. Good programming (including independent, classic, foreign, family, faith based), good presentation, great service, reasonable prices and catering to your community will. Just my take on "First run"-itis.
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Jonathan Smith
Expert Film Handler
Posts: 201
From: Youngstown, OH
Registered: Jan 2010
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posted 11-18-2010 03:54 PM
I assume the comment above is directed towards me.
Since only one commercial theatre in town here is catered to a non-Hollywood blockbuster audience, and a second is 2nd run of mainstream movies, I would assume that is what most theatre owners want to sell, because that is what they are selling.
If I were to open a theatre (not that I ever would), I would offer a healthy mix of classic films ('60s, '70s, '80s, '90s), as well as some indies, foreign films, and a few mainstream movies.
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Jonathan Smith
Expert Film Handler
Posts: 201
From: Youngstown, OH
Registered: Jan 2010
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posted 11-18-2010 04:21 PM
Robert: ?
quote:
- Don't hire a bunch of teenagers to run the place for you. Your audience will react favorably if they see the OWNER in there selling tickets, working the concession or whatever. Go ahead and hire teens to work, but keep after them to NOT act like typical mall rats. Be very picky about who you hire.
[. . . ]
- You must have digital sound. If you find a place that has decent film equipment, but analog sound, that's the ONE thing you absolutely must upgrade to ASAP. "The audience is listening," indeed.
I think "teenager" is a terrible stereotype. There are :sex:tards all the way up the age ladder in this industry. I would paraphrase this as "Don't hire people that have the IDGAF attitide." Sometimes these people take the form of theatre managers, theatre general managers, or ten year veterans.
I will probably have people on here jump all over me for this, but most people couldn't care less about the sound as long as it is loud enough. There are theatres, big chains that do very successful business with MONO sound in a surprising number of auditoriums.
Cinemark didn't bother to install digital sound in a new theatre here in 2007, except for four or five screens, because of the "pending digital transition." Two of their five digital sound systems weren't even working right (Dolby Digital) when I got fired.
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Mike Blakesley
Film God
Posts: 12767
From: Forsyth, Montana
Registered: Jun 99
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posted 11-18-2010 05:01 PM
quote: Jonathan Smith
I think "teenager" is a terrible stereotype.
Not really. I have 5 teenagers working for me who are some of the best people I know. They are all responsible and do a good job. If I wasn't proud of them I wouldn't put their picture on Film-Tech every year.
BUT, if we were to let them run the whole place on a daily basis while I sat home and watched TV, our high standards might get relaxed. Pretty soon their friends might be hanging out, they might give in to spending half their shift texting, and so on. This is not because they're irresponsible; it's just youthful exuberance kicking in. Our kids do a great job partly because they know my wife and I are going to be there every day and we insist that they do a great job.
Our local grocery store here is a perfect example of what I'm talking about. In the evening, sometimes it's nothing but high school kids running the place. They're all nice pleasant kids, but they don't all know yet how to operate independently in a responsible manner without supervision. This is not a criticism of them; it's just that they haven't matured yet. So they goof off; they talk to each other and ignore the customers, and so forth. If they had supervision, it might be a different story.
quote: Robert E. Allen
What Hollywood has done in recent years is limit their customers to a particular audience (usually those who prefer violence, sex, profanity and amoral subject matter).
That's just a ridiculous statement.
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Mitchell Dvoskin
Phenomenal Film Handler
Posts: 1869
From: West Milford, NJ, USA
Registered: Jan 2001
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posted 11-18-2010 07:04 PM
All the advice in this thread is good, especially about having deep pockets, or an investor, or better yet, a partner with deep pockets.
Just want to add:
If you are looking at an existing location that is currently closed, there is usually a reason why it is closed. The question you have to ask yourself is what can you do better than the prior owner. Assume you will do the same, or worse, at least initially. Will you be able to survive?
Leasing closed theatre can be a mixed blessing. If the landlord is hungry enough, you may be able to negotiate a percentage lease, ie, no fixed rent, but a percentage of your gross. If you are very successful, that will cost you, but it brings the cost of entry down. Still, you will need deep pockets for all those other expenses like taxes, labor, insurance, utilities, building maintenance, and film costs.
Remember, the most common reason that businesses fail, in any industry, is lack of capital.
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