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This topic comprises 4 pages: 1 2 3 4
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Topic: The Annual Popcorn Rip Off Article
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Martin Brooks
Jedi Master Film Handler

Posts: 900
From: Forest Hills, NY, USA
Registered: May 2002
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posted 09-25-2019 11:29 PM
Yes, movie concessions are extraordinarily expensive and personally, I almost never purchase them because I can't stand being ripped off. But that's also true at arenas, convention centers, sports stadiums, amusement parks and almost anywhere where one is part of a "captive audience". And it happens because of the dogma of "maximizing revenue" pushed by finance types. What they don't take into consideration is the bad feelings it leaves which kills repeat business.
But having said that, the high margins on concessions is keeping movie theaters in business. Looking at AMC, the largest movie chain, their gross margin on concessions was 84% and constituted 32% of revenue in the first two quarters of this year (their gross margin on films was 48%).
But overall, AMC lost $487 million in 2017, made $110 million in 2018 and so far in 2019 has lost $81 million.
So if we want theaters to survive, they have to do the concession ripoff. If you don't like it, don't buy. I don't. I've never understood why people can't get through 3 hours without eating crap. But obviously, there are many people who have the money and don't care.
The question is if they charged half the price, would they sell twice as much? If they charged a quarter of the price, would they sell four times as much? Probably not.
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Mitchell Dvoskin
Phenomenal Film Handler

Posts: 1869
From: West Milford, NJ, USA
Registered: Jan 2001
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posted 09-26-2019 02:59 PM
I posted the essence of this on another thread here before.
AMC has a concession problem, and it is not really the cost. It is the paid Stubs member priority line. Having a fast lane for paying members is not necessarily a problem, but having only one server who never has time to server the non-member customers has to be costing them money.
Me and my girlfriend went to see the Downton Abby preview at their Rockaway Square NJ location. I already knew that it was a waste of time to attempt to buy snacks/soda at AMC due to what I stated above, but my girlfriend actually wanted something. After 20 minutes of waiting in a not being served line, she too gave up along with about half the line.
I was standing across the lobby from the concession stand chuckling. If the brain trust at AMC thinks this will make anyone want to signup for a paid Stubs level, they are wrong. What this does is make people skip the concessions altogether, and when possible, skip AMC altogether.
There is no excuse for bad customer service, and this policy is bad customer service.
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