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Topic: How many free passes do you accept daily?
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Dustin Mitchell
Phenomenal Film Handler
Posts: 1865
From: Mondovi, WI, USA
Registered: Mar 2000
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posted 08-09-2002 06:43 PM
Box office revenue is understated in this industry. If you look at SEC fileings and the P&L's for your theatre (if you have access to them) you will see that when all is said and done, theatres keep about 50% of box revenue despite the infamous 90/10 openings of some films. Now, if you take concession revenue away, your theatre will los money. Not much, but a business is designed to generate profit. That is why the concession stand is called the 'profit center' of the theatre.Concession revenue, however, DOES NOT carry a theatre. Admissions pays your rent, your heating and cooling, and most of the other expenses at your theatre. Emphasis should be placed on increasing concession revenue, but if in the process the attitude is cultivated that box is not important you may find the number of passes increasing to an unacceptable level.
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