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TOPIC: Expanding a Twin to a 4-plex

Expanding a Twin to a 4-plex 19 Dec 2006 23:38 #13911

  • rufusjack
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Thanks for everyone’s thoughts/experiences/opinions on this discussion board. I apologize if this topic has been covered before but I did not find much when I searched this topic.

Idea: Expand from 2 screens to 4 screens.

Background: We are in a bedroom community to the state capitol (60,000+ people). Currently, we have a 12 plex which is divided amongst two buildings at the mall and a 4-plex subrun theatre. We operate a 2 screen theatre that has existed off and on for the past 30 years. Strengths: Clean, good presentation, and good value. Weaknesses: Poor Seats

I have 14 years experience in owning video stores (now have 5) including 2 in this market.

We have been re-opened for almost 2 months and have been happy with our numbers. I compare our numbers with a few others in the geographic area (within 60-90 miles) and we usually place in the top third or top 1-2 out of 6-8 theatres by per-capita averages (Ticket Rev/population).

Pros:
1) If running staggered starts, you could add more show times without much, if any increase in labor. Our staff is always challenged to stay busy.

2) Maybe increase the image of the theatre by having more offerings therefore increase the numbers for the first 2 screens. Plus the illwill from previous management cos.

3) Spread the risk of a dud (Charlotte’s Web). I never would have thought that “Pursuit of Happiness” would have done as well.

4) Keep a film that has legs (Happy Feet)

5) Even greater opportunity to market my existing video stores.

Cons:
1) This is a challenging business.
2) Lower the grosses for the first 2 film showings because of more options.
3) Many months were the films are not that great it may be hard to fill 4 screens with decent revenue producing films.


Your thoughts?

Thanks

Mike
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