factor

And making concessions to trends

Steven Spielberg once said of his spectacular success in making boffo box office performers that he is, in fact, in the business of selling popcorn. That could be viewed as a modest take on his talents or an interesting slant on the theatrical film business.

The concession stand, on average, generates one-third the revenues the box office does, estimates Famous Players executive vice-president John Bailey. ‘We’re striving to do better than that,’ he says.

Part of any concession strategy these days goes beyond the snack quotient, although even that most primary element has become complicated.

Gone are the days of a mid-stride scan of the candy counter, where Twizzlers and popcorn were the standouts. Now, hot dogs and natcho snacks, beer and cappuccino, jujubes and mixed nuts are standard fare to satisfy the peckish.

When things go wrong in this department, the fallout can be grave. Take Cineplex Odeon’s loss of $14 million in revenues in 1994, some of which came with the famous oil scare last April, when news of the fat content of coconut oil sent customers scurrying for health snacks. The company reported concession sales dropped by 4.5% last year, due in part to the stampede for granola bars.

Famous, too, lost at the concession stand but will only say it ‘took a dip’ initially and during the two months before making the switch to canola oil.

Do concession stands and other gizmos (such as atm’s and touch-screen machines) entice a customer to return to a cinema? Bailey says no. ‘They come for the movies, much as we would like to think they come for other items there. It’s really what’s playing on the screen that brings them in.’

In addition to pumping up the comestibles, the greatly unknown commodity of interactive games in cinemas looms over exhibitors’ heads. In the future, would Spielberg say, alternately, he’s in the business of promoting virtual reality or simulator rides instead of popcorn?

Installing interactive equipment is expensive, and both Howard Lichtman, executive vice-president of marketing at Cineplex, and Famous president Joe Piexoto agree it can be a risky business.

Cineplex has plans to open video games centers in two theaters in Washington State and has recently opened a cinema in Hamilton, Ont. with a video games arcade.

‘What we are doing in Hamilton isn’t risky,’ says Lichtman. ‘What is risky, and what doesn’t belong everywhere, are the larger entertainment centers where you get into virtual reality machines and simulation-based ride theaters.’

Lichtman says Cineplex is investigating the mega-center concept, ‘but only on a very limited basis.’

Piexoto says Famous is making room in theater designs to accommodate games arcades, but he’s not sure how far it’s going to progress.

He says entertainment-based systems are a very interesting concept, but they’re not that new. Bottom line is ‘some of them work and some of them don’t.’

Considering the speed at which technologies and programs are developing, Piexoto also cautions against being stuck with yesterday’s games. They could go so far as being a disincentive for future moviegoers, he says.

Looking into the future, Lichtman envisions a family at the cinema with a bit of time to spare and a games room that has X-men or Combat Pinball for the kids and a racing car virtual ride for Dad. Mom is sipping her coffee on the sidelines. Oh yeah, and the old standby – popcorn – is in abundance. After all, that’s the name of the game, isn’t it?