The Weekly 6 - What's Old is New Again (The New Movie Theater Experience)

An Upgrade From Dirty Carpets and Tubs of Popcorn,

Theater Chains Try Full Menus,

Seat-Side Service

 
As Hollywood churns out ever more attractive big-budget films, laden with 3D and other special effects, little has changed at theaters, where audiences can find worn seats, stale popcorn, and overpriced candy.

Audiences at a growing number of theaters can order such dishes as chinois chicken salad rolls or limoncello-tossed shrimp. More middle-of-the-road fare is also available, like cheeseburgers and chicken caesar salads. Seats in these so-called "in-theater dining" cinemas are big and plush. Popcorn is often complimentary and a full bar is de rigueur.

A few years ago, a handful of such theaters existed in the country. Now, the National Association of Theatre Owners estimates that the U.S. plays home to roughly 300 to 400 cinemas with restaurant service out of roughly 5,750 total theaters.

Regal Entertainment Group, the largest U.S. theater chain, has opened five premium locations as part of its new Cinebarre line, a combined movie theater and restaurant concept the company began in 2007.

IPic Entertainment, which acquired Gold Class Cinemas last year, recently opened its eighth dine-in cinema in Scottsdale, Ariz., and plans to open another five to six theaters a year.

AMC Entertainment Inc. says they can envision converting 10% of the company's total theaters, which now number about 375, into ones that offer in-theater dining.

The premium prices may seem high, but movie-chain executives say in-theater dining is a more time-efficient way for some people to spend an evening out.

Ticket prices vary. Some chains, such as AMC, charge a flat fee of $10 or $15 above the usual price of a ticket but include that amount as a credit toward food purchases. Others, like Gold Class Cinemas(IPic), price tickets between $17 and $29 just for a ticket and then charge for food separately.

Cost of going t o a typical movie theater, non-matinee pricing:

3D Adult:   $12.50 (Harkins)    $10.50 (AMC)

3D Senior:  $9.50 (Harkins)      $10.50 (AMC)

Adult:         $10.00 (Harkins)    $7.50 (AMC)

Senior:        $7.00 (Harkins)      $7.50 (AMC

Popcorn: $7.00
Hot Dogs: $5.00
Candy: $4.00
Drink: $4.50



Viewing experience at the new IPic theater (Scottsdale Quarter)

Gold Class Seating ($17.50 ticket plus $7.50 VIP) Includes Reserved Seating, Valet Parking, Reclining Seats, Complimentary Popcorn, and In-Theater Service (Premium Seating includes Reserved Seating, Leather Seats)
http://www.ipic.com/FaqBayshore.html#05.2

At dine-in cinemas, seats typically come in pairs of two, with wide aisles between couples to allow waiters to navigate in and out the theater during screenings without blocking views of the movie. Many guests order during the film by pressing a small button near their chairs. Some theaters have small tables in front of the seats; others feature folding trays that extend across the seat for easy eating.

Many dine-in theaters have some age restrictions;

some don't allow anyone under 21 years old.

Some theaters offer alcohol, luxury seats with armrests and footrests, blankets, pillows, or moist towels before the film begins—as well as chocolate mints afterward. The actual auditoriums are often significantly smaller than those of the vast multiplexes, featuring fewer than 30 chairs, along with assigned seating, digital sound and super-wide screens.

It's too soon to know whether dine-in theaters will be profitable. Theater chains note that profit margins on concessions, such as popcorn and candy, are far higher than on ticket sales. Half of a ticket sale represents profit for a theater, compared with 85% from the sale of concessions. Executives hope the dine-in theaters will also benefit from higher food margins, although not as high as for snacks.

Dine-in theaters, although still a niche market now, could become mainstream especially as audiences clamor for a higher-end experience and a growing number of baby boomer requesting a kid free zone.