Movie showings have gotten noticeably emptier in recent years, and some theater CEOs are reaching for a solution in upscale food and beverage options.
Chairman of the National Association of Theatre Owners Rolando Rodriguez, who also serves as a senior advisor at Marcus Theatres, told NBC DFW that American consumers are shifting toward “demanding more than just a popcorn and a drink or nachos or candy.”
“[T]hey’re really looking for experiences that they’re having for meals associated with watching the films,” Rodriguez said to NBC. “The expansion … on the food and beverage is absolutely a must.”
Due to the popularity of streaming, people often wait to see movies until they are out on streaming services. This is another reason theaters are hoping to improve the overall experience of attending a theater, according to Mike Gallinari, senior travel and leisure analyst at Mintel, according to NBC.
Despite being the world’s largest movie theater chain, AMC is undergoing similar debt and revenue issues. The company’s stock has reportedly fallen around 50% over the past year.
One of the main issues for theaters is a lack of content, according to Eric Wold, an analyst at B. Riley Securities. When comparing 2022 with 2019, 50% fewer films were released in theaters last year. Wold does not believe that theaters will be back at pre-pandemic levels of releases for another two years, per NBC.
Wold explained to NBC the importance of concession sales: While theaters have to pay around half the cost of each ticket back to the studios, they get to keep the entire profit on concessions.
According to NBC, theaters typically receive anywhere from a third to half of their total revenue from concessions.
A larger menu, however, means that some theaters have to be more attentive to staffing and predicting show attendance.
The Dallas-based theater Studio Movie Grill is among these theaters. The theater takes orders from attendees’ seats, and then the kitchen staff must prepare the food before it can be delivered. Studio Movie Grill has to accommodate, at times, as many as 1,000 customers.
CEO Ted Croft told NBC that a quarter of the theater’s overall field team is the kitchen staff.
In December, The Dallas Express reported on the first Violet Crown Cinema to open in Dallas. Like many theaters, the Violet Crown Cinema will serve made-to-order food alongside classic movie theater fare, as well as wine, craft beer, and cocktails.
Additionally, Cinépolis, a Mexican theater chain, is marketing even more upscale food, such as lobster tacos and truffle mushroom pizza. The chain updates its menu twice a year.
CEO Luis Olloqui summed it up to NBC: “As our founder used to say back in Mexico, we build theaters to sell food.”
