Movie Theaters Focus on Foodservice

Movie Theaters Focus on Foodservice

Movie theaters have had a rough few years: Attendance has fallen and ticket prices have stagnated, eating away at profit margins.1 One saving grace has been the concession stand, where popcorn and other concession stand foods provide as much as 85 percent profit, a margin generous enough to help cushion the effects of shrinking attendance.2

Even with what some might claim to be exorbitantly high concession prices, theaters (also known as "exhibitors") don't get to keep all the money for themselves. Most ticket money goes back to distributors and the studios who produced the movies, leaving many theaters relying on secondary products to bolster their bottom line. With all those numbers working against them, it's no surprise movie theater operators have started looking for additional profit channels in the form of membership programs, arcade games, reserved seating, alcoholic beverages, and robust food menus.

Luring With Luxury

With services such as Netflix, Disney Plus, HBO Max, and Amazon Prime making many new releases available for streaming as soon as they hit the theater, a growing number of patrons are opting to skip the big screen and watch new releases at home instead.3 As a result, movie theaters have had to find new ways to draw customers in. As part of this effort, many have chosen to renovate buildings to include luxury seating,4 despite this lowering each theater's capacity. One innovative trend spreading across the country is 4DX movies, which make use of moving chairs, puffs of air, and scents to create a more immersive movie experience.5

Graph Shows Decreasing Theater Preference vs Increasing Streaming Preference
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In addition to making the theater itself more comfortable and immersive, movie theaters are putting renewed focus on their biggest moneymaker: food. Many theaters are beefing up their menus, both at the concession stand and by offering in-theater service, enabling the classic dinner-and-a-movie experience to happen all in one place. In-theater service requires a different setup than traditional theaters, with more space between rows so servers can access customers, and tables either attached to individual seats or running the length of the aisles. Many theaters also incorporate buttons into the seats or tables that alert the server when someone needs assistance.

These services aren't limited to food, either; many theaters have added cocktail stations and draft beer systems. At some locations, customers can purchase beer, wine, or cocktails at the concession stand before the movie, and at others, drink options are included in the theater service menu.

Dining Difficulties

While in-theater dining has been introduced to solve one set of problems, it can lead to an entirely different set of issues unique to the theater setting. After all, people go to the theater to see a movie; the food is just an extra lure. It stands to reason that anything that might disrupt the movie would be troublesome, and eating a whole meal tends to make noticeably more noise than just snacking on some popcorn or Milk Duds.

Some consumers have found the interruptions to the movie distracting,7 pointing out that it's hard to pay attention to a movie when a waiter is delivering food or bringing a drink refill, and that the dark and noisy nature of the room can make it difficult to communicate with wait staff.

To help combat those problems, some theaters, such as CMX CinéBistro,8 require diners to arrive a few minutes prior to the movie's start time to place and receive their orders, with no additional service offered once the movie begins. Those who arrive after the movie starts must place their orders at the counter and receive a pager that lets them know when they can pick up their food.

Another theater concept spurred by waning consumer interest in the traditional movie experience is Cinebarre, part of the Regal Entertainment Group. At Cinebarre, a full menu including appetizers, snacks, alcoholic beverages, and entrees can be ordered right from your seat. Patrons can relax in the adjustable recliner seats and flip their swiveling table into place once their food arrives.

Outside, in the theater's lobby, patrons can find much more than concessions to pass the time as they wait for a movie to start. From arcade games and pool tables to full restaurant service and big screen TVs, Cinebarre has taken elements from popular spots such as Dave & Buster's and Main Event and blended them with the movie viewing experience.9 Although many people have embraced the all-in-one, multi-level "Cinebarcade" destination with gusto, others find these additions flashy, confusing, or overwhelming.

Theater Food Gets Mixed Reviews

The noise generated by eating can also be annoying to customers. We've all been annoyed by someone rustling a bag of candy at a theater, so how do dine-in theaters handle the noise generated by a whole room full of people eating? Sherry Yard with iPic Entertainment designed an entire menu specifically meant to be quiet,10 limiting crunchy foods and only including menu items that can be eaten with a patron's hands so there's no noise from utensils clinking and scraping against plates.

Another potential problem is lighting. Eating in the dark can be difficult, even without utensils being involved. One reviewer of an iPic theater in New Jersey had trouble eating in the dark without making a mess and criticized the tables as too small, leaving her and her husband to eat over their laps.11

Some theaters have responded to this problem by installing low lighting over the tables, but that can detract from the movie. With big-name theaters like Regal and AMC getting in on the dine-in theater game,12 however, we might start seeing some creative new solutions to these problems come to light.

References

  1. Domestic Movie Theatrical Market Summary 1995 to 2022. The Numbers. Accessed February 2022.
  2. Movie Theaters Make 85% Profit at Concession Stands. Time. Accessed February 2022.
  3. The Majority of Americans Say They'd Rather Watch New Releases at Home, Rather Than a Theater. Paste Magazine. Accessed February 2022.
  4. Cinemark Luxury Recliner Chair. Cinemark. Accessed February 2022.
  5. 8 Things You Need to Know About the 4DX Theater Experience. Rolling Stone. Accessed December 2022.
  6. Preference for Watching a Movie for the First Time at a Theater Instead of Via a Streaming Service in the United States from November 2018 to June 2020. Statista. Accessed February 2022.
  7. Beyond Popcorn: Theaters Try Seat-Side Food Service. NPR. Accessed February 2022.
  8. CMX CineBistro: Enjoy an Elevated Movie Experience. CMX Cinemas. Accessed February 2022.
  9. Regal Cinebarre Arrives at West Town Mall on July 19. WBIR 10 News. Accessed February 2022.
  10. This Chef Created a Quiet Food Menu for Movie Theaters. CNBC. Accessed February 2022.
  11. At iPic Theater, (Literally) Juggling Dinner and a Movie. New Jersey Monthly. Accessed February 2022.
  12. Mmmovies. AMC DINE-IN. AMC Theaters. Accessed February 2022.