U.S. THEATRES GET DELUXE DINING OPTIONS

FROM THE ASSOCIATED PRESS

When the AMC STUDIO 30 FORK & SCREEN opens today in suburban Kansas City, moviegoers will get to sample a lush life not normally associated with a megaplex.

Most of the 30 screen complex still features popcorn – to be washed down with soda in theatres with masses of stadium seats. But 11 renovated and redesigned auditoriums offer padded recliners, alcoholic drinks and a full kitchen that mixes up diverse delicacies such as Parmesan fries and Darkiccino chocolate brownies.

“This will be a great draw for customers who want an upscale experience,” said ANDY DiORIO, a spokesperson for Kansas City based AMC ENTERTAINMENT, which plans eventually to include elements of FORK & SCREEN in many of its more than 350 theatres.

So called cinema eateries have been around for decades. But they’ve gained ground in recent years as theatre operators look for new ways to attract customers. Especially older moviegoers who have no tolerance for the junk food, uncomfortable seating and rowdy teenage crowds that typically populate multiplexes.

In an industry that makes around a quarter of its revenue and about 40 per cent of its profits from food, giving patrons an excuse to splurge on treats and drinks is a hefty incentive to rip out the seats and go upscale.

The entrance of major chains, including REGAL and AMC – the top two U.S. operators – will only broaden the appeal of such theatres, said PATRICK CORCORAN, a spokesperson for the NATIONAL ASSOCIATION OF THEATRE OWNERS. He estimates approximately seven per cent of theatres now offer an extended menu.

VILLAGE ROADSHOW GOLD CLASS THEATRES will also open a complex today in Redmond, Washington. It’s the second American location for them. The Australian company will command up to $35 a ticket for luxury leather seats and the opportunity to dine on duck tacos and lobster rolls – along with expensive wine.

“One of the reasons that I think you’re seeing this is that there’s been an increase in the number of older adults going to the movies,” PATRICK CORCORAN stated.

“You want to get hold of that market. The older demographic tends to have more disposable outcome and looks for a different experience than teenagers and people in their 20s are looking for.”

He said that while he was optimistic about the big chains’ chances, they must watch out for the pitfalls of the restaurant industry. Profit margins can be much smaller than the nearly 70 per cent margins theatres see selling popcorn and soda.

“The only obstacle to it now is that you have to do two businesses well.”

AMC experimented with a FORK & SCREEN concept last summer at a theatre in ATLANTA but considers the opening at STUDIO 30 – the company’s flagship theatre – the best test of how consumers will embrace the idea.

“We feel we’re on the right track with this step,” ANDY DiORIO remarked.

THE FORK & SCREEN is built around a central bar and lounge called MACGUFFINS. While ticket prices in eight of the eleven auditoriums are the same as in regular theatres, three are so called CINESUITES offering more intimate and comfortable seating. They cost $10 extra.

All eleven auditoriums offer menu items ranging from $5.29 to $11.59 a plate – plus alcoholic beverages.

“It gives customers an option,” said ANDY DiORIO.

Knoxville, Tennessee based REGAL, the largest chain in the U.S., has three CINEBARRE cinema eateries that it operates jointly with a NORTH CAROLINA entrepreneur who helped found the nine theatre ALAMO DRAFT HOUSE chain in Texas.

CINEBARRE, like ALAMO, offers menus heavy on sandwiches, appetizers and pasta. They are served on long tables that line each row of seats.

“These locations establish their own niche,” said REGAL spokesperson DICK WESTERLING. “The one in ASHEVILLE NORTH CAROLINA has performed much better than the location that previously showed traditional movies in a traditional manner. We feel we’re growing our customer base.”

VILLAGE ROADSHOW’S first location, in South Barrington, Illinois, opened three weeks ago and offers movies in eight theatres built around a cozy foyer and bar.

Customers reserve seats online for one of the 40 person theatres staffed by servers in black suits. The menu leans towards the gourmet with some dishes approaching $20 and a wine list that goes well up into the hundreds of dollars. Tickets cost $22 to $32.

KIRK SENIOR, VILLAGE ROADSHOW’S CEO, said the cost is high. But it isn’t much more than seeing a film and going out for dinner afterward.

“We’re finding it’s not for everybody all the time. But it is for everybody some of the time. We strongly believe we’re not competing with the multiplexes.”

Of course, all bets are off if the economy tanks. The middle class’ leisure spending will be curtailed considerably. But DAVID BRAIN, whose ENTERTAINMENT PROPERTIES TRUST owns hundreds of theatres operated by major chains, said that cinema eateries can weather a harsh economic climate if patrons perceive they’re getting a deal.

“If they pay even a dollar more, they get value for the time because they do what they want to do – which is have a meal and see a movie. I think people are going to be very satisfied with it.”