Film-Tech Forum ARCHIVE: Tips on Starting My Own Theatre Business

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Posted by Chad M Calpito (Member # 3736) on 06-28-2007, 11:20 PM:

I need to get some tips and ideas. Hopefully, soon, I would like to start my own movie theatre business in Hawaii (exact location, uncertain). Of course, I would need to spend the money for equipment, a business license, insurance, etc. & to hire the right employees. My idea would be to start a 10 Screen complex (Stadiuam seating not required, but, I wouldn't mind going the route). I plan on specializing in Independent, Foreign, Documentary, Cult and Horror Flicks.

Here are some ideas I have put together besides what I mentioned above:

1) Have a Cafe (titled The Wave Cafe)
2) An exclusive Executive Premier Bar & Cafe
3) A Gift Shop
4) A Premier Executive Auditorium using the best auditorium seats

All of that would be in addition to a typical Concession Stand, Box Office, Guest Servies Desk & Kiosk, Online Ticket Purchasing.

The Equipment I would like to use in the booth are:

1) Big Sky Industries Lamphouses & Consoles
2) Kinoton Projectors (which model does everyone think I should go for?)
3) Christie AW3R Platters (Hey, Brad, if I do get this business going, I'd like to contact you to assist me in setting up the Platter Array - 5 on one side and 5 on the other side)
4) Dolby Digital & DTS Digital for all auditoriums
5) Kelmar Systems Build-Up Stations
6) Definately use Film Guard
7) Platter Safety Rings
8) QSC Amps or Bryston Amps
9) Big Sky Industries Sound Racks
These are just some of things I will use.

Some other things I'd like opinions on are Screens, Concession Stand Equipment, Cinema Seats, etc.

I'd also like to plan on holding a Summer Film Festival, an October Film Festival specializing in horror flicks, etc. I would also plan on bringing back a whole lot of movies from the 1980's era.

Anyway, any and all Tips & Ideas are appreciated. The name of my future movie theatre is still in the works right now.

Thanks - Chad

Posted by Mike Blakesley (Member # 26) on 06-29-2007, 10:09 AM:

Well you need to find a location first and find out how many millions of dollars the land will cost.

Posted by Darryl Spicer (Member # 711) on 06-29-2007, 11:22 AM:

You need to do a market survey before spending any money on your plans. This includes what first run competition is in your area, what types of films people would want to see. If you go into an area that no one cares about all that special stuff like foreign films, 80's films and cult films you will be waisting your money and will be bankrupt before you can reach your five year profitability goal. That is a goal that all small businesses need to be at before they are considered a profitable successful business. If in five years you are not doing very well then you need to close. A lot of businesses see the closed sign go up before that. To be honest the whole specialty idea scares me when it comes to a new business because you are only aiming at a set group of people that may or may not be there.

Posted by Chad M Calpito (Member # 3736) on 06-29-2007, 11:27 AM:

I agree with you, Darryl. When I get the time, I plan on flying to Hawaii to do the Market Survey, etc. I'm thinking of doing it either in Kona or Hilo, Hawaii.

Posted by Jesse Skeen (Member # 586) on 06-29-2007, 01:00 PM:

Why Hawaii? Build it near me and I'll work for you for a decent rate! [Smile]

Posted by Lyle Romer (Member # 1266) on 06-29-2007, 01:31 PM:

Not to rain on your parade but I'm not so sure that Kona or Hilo would work for what you're looking at. I was there back in February. There is a well-entrenched chain (can't remember the name there). Even the common first runs are 10-12 screens. The population doesn't exist to have a 10 screen specialty house. If you think there's an audience in that area I would look around Hilo for an old single or twin that is empty. I didn't notice any in Kona.

The other thing is that there did not look to be any (other than a single maybe) empty old theaters that you could renovate and open. You're going to have to build from the ground up.

Also, things like having Dolby Digital AND DTS in each auditorium is probably a waste. With Digital Cinema eventually (within 5-7 years) taking over you'd probably be better off just getting Dolby Digital with CP-650 so you'll be ready for DC. In a ten screen, adding DTS is going to be an extra $60,000 to $80,000 (I'm not sure what the DTS costs these days).

My other advice is to really get a grasp on the financial commitment. From somebody that didn't have a grasp going in, everything in this business is expensive. Every little thing is $5000 here and $5000 there and it adds up quick.

A concession stand for a 10-plex built from scratch is going to run probably $50,000 fully equipped. New seats are going to be $100+ each. Carpet, signage, computer systems, etc etc. Not to mention $100,000+ per screen on projection and sound.

Posted by Martin McCaffery (Member # 37) on 06-29-2007, 02:11 PM:

Gotta agree with the others, you sound like you are trying to fill a niche that isn't there. If all you really want to do is get into the theatre biz and show art/indie/foreign you probably don't need more than 4 screens, top. Your idea of having a bar is in the right direction --the real money is in food an beverage. An upscale Cinema/bar/Diner may be cost efficient (do the market survey first) but there are damn few cities in the US that can support an art ten-plex.

The idea of going for quality everything is a strong point. You may be able to build a reputation for excellence that will attract people from the other theatres.

good luck

Posted by Aaron Mehocic (Member # 15) on 06-29-2007, 03:17 PM:

A former manager had the same idea about ten years ago. He had architectural drafts, demographics, business plans, etc. etc. and no bank wanted to even touch the loan.

My advice is to start small - three screens at most - and make sure you have a day job during dry season. I've met many wealthy theater owners, but I've never met a theater owner who grew wealthy owning a theater.

From some other posts here on Film Tech, I'd say you're in your 20's and love the business. Thats great, it needs people like you. However, your dreams outlined above are those of an owner in his 60's who still loves what he does after years of owing creditors, forsaking summer vacations, and giving everything he has to provide a good show at a decent location for a reasonable price.

Its great to have your dreams, but you'll need collateral to make them real. And thats what I'm trying to tell you above.

Posted by Mark Gulbrandsen (Member # 72) on 06-29-2007, 04:17 PM:

quote: Chad M Calpito
The Equipment I would like to use in the booth are:

1) Big Sky Industries Lamphouses & Consoles
2) Kinoton Projectors (which model does everyone think I should go for?)
3) Christie AW3R Platters (Hey, Brad, if I do get this business going, I'd like to contact you to assist me in setting up the Platter Array - 5 on one side and 5 on the other side)
4) Dolby Digital & DTS Digital for all auditoriums
5) Kelmar Systems Build-Up Stations
6) Definately use Film Guard
7) Platter Safety Rings
8) QSC Amps or Bryston Amps
9) Big Sky Industries Sound Racks
These are just some of things I will use.

You left out the single most important thing... Trained projectionists... And getting a decent enough wage to keep them around more than 3 weeks, union or not... doesn't really matter!! Just good adept people to run the shows!

Mark

Posted by Chad M Calpito (Member # 3736) on 06-29-2007, 04:18 PM:

Wow, I must say that, so far, all of your tips, ideas, etc, are wonderful. I'm glad to receive much information on this. It's really making a difference.

Anyway, Aaron, I'm 35yrs old. I know you where guessing. [Big Grin]

But, your points in your post is what matters most and I really am glad you made some suggestions, etc. I'm soaking all of these ideas in like a sponge. [Big Grin]

Thanks for reminding me, Mark. I definately agree with you, to have trained projectionists in the booth. How silly of me to forget that.

Posted by Jesse Skeen (Member # 586) on 06-29-2007, 04:48 PM:

Yikes, you're only a year older than me! I'd go in on it with you if I had any money, but I'm currently unemployed (one of the last to be laid off from the late great Tower Records).

I have to also question the need for DTS though- there's just been FAR too many times films have arrived without discs (had problems more than 10 years ago, and I STILL hear about it happening now!), and it makes trailers extremely awkward. The letters stand for Do They Ship? [Razz]

Never mind that's a DTS shirt I'm wearing in that picture!

Posted by Mark Gulbrandsen (Member # 72) on 06-29-2007, 07:23 PM:

I think at least a few XD-10's is a good idea in any multiplex booth. It gives you the playback options that you should have. Sometimes SRD tracks are printed poorly too! Placing your apples all in one bucket is not wise.

Mark

Posted by Bill Gabel (Member # 1105) on 06-29-2007, 07:53 PM:

Well if you are planning to show Independent / Foreign / Documentary films. I handle many of those types of films for their NYC media screenings. Around 85% of those titles are only available in Dolby Digital, it's rare there is a DTS disc for those releases. You should email Claude Ayakawa from this site, he lives over there. He maybe able to give you some advise on the chains operating over there.

Posted by Dennis Benjamin (Member # 1137) on 06-29-2007, 08:17 PM:

I wrote a business plan for a six screen theatre back in 2002 and 2003. The base cost of the project was 3.5 million dollars. This was for the building and the owners of the property were going in as partners. The location was in Nevada.

While I did get some financing approved - the costs were astronomical. The project fell through when good 'ole Ray Syufy announced that Century was going to build in the same town. I lost my million dollar investor and the landowners got nervous.

Good Luck.