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I'm interested in opening a theater in my town, but don't really know sqaut about the process or theater business. First I'd like to get some opinions from people who know much better than I do if this location would even support a theater or not.

I live in a rapidly growing bedroom community of about 35,000 people who all have to commute at least 25 miles into a big city everyday for work. The town is only 5 years old but growing quickly. The closest movie theater of any kind is 26 miles away. In town we have some resturants, grocery stores, etc. but not much in the way of entertainment, aside from some parks. The community is made up mostly of young, working families (almost 1/3 of the population is under 5 years old).

I'm thinking about a theater with 4-6 screens. I have 2 main questions. 1) Do you think this community would be a good place to build a theater? 2) What kind of costs am I looking at to build from scratch a theater with 4-6 screens (not including cost of land of course) how much land will I need to build?

Thanks!

Phillip,

I have never dealt with small town theatre; however I usually look for 10,000 people per-screen. Based on future growth your town should be able to support a 5 or 6 screen theatre.

When evaluating a new location I use a pro forma spreadsheet that allows me to calculate the viability of the project, cost and return on investment. Please let me know if you are interested and I will forward you a copy.

Richard

Yes, I would be interested in a copy of that spread sheet. Please forward it to This e-mail address is being protected from spambots. You need JavaScript enabled to view it Thanks. Any other info is appreciated as well.

Richard and Phillip:

The 10,000 per screen may be true if you're going to play the same thing everyone else is playing. But I would encourage you to be creative and more selective than most theatres (especially the corporate big boys) are being. Study what is available from the independents and elsewhere around the world. I would suggest you hire yourself a good booker. It'll cost you about $150 a month and he'll work with you to get you what you want. And that will take a load off your back.

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Bob Allen
The Old Showman

Bob,

I agree...10,000 per screen is what we are using in large markets for our 18 + IMAX locations. For theatres like this to succeed and show a return on investment we like to have the 10,000 per screen density.

Our six screen art house is successful because of its loyal clientele with many returning two or three times a week to see the latest art product if applied to the model above would not be in operation.

While 10,000 per screen is our starting point we take into account many other factors in our decision. Creating a realistic pro forma is really the only way you will be able to see if a location is right for the return on investment you are looking for.

Richard

Hi Richard:

Having watched the development of the multiplex consept over the years and having managed for Regal and CineMark I have concluded that those companies and other large multiplex exhibitors work in conjunction with distributors to cater primarily to the 14 to 34 year old demographic and have developed a taste in that group for blood and guts special effects, sex and nudity and vulgar language. I have also concluded that, in most locations, an independent theatre can be successful catering to the underserved demographics (including those of all ages who don't care for the type of product mentioned above) with other product on the screen and healther product at more reasonable prices at the concession stand. While this is my theory at present I hope to prove it in my own house in the near future.

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Bob Allen
The Old Showman

Thanks for the replys and for the info you guys have emailed me. So now for the 2nd part of my question. What kind of price range are we looking at just for a building with 6 screens say 150-200 seats per screen. Not including price of land, what price range are we looking at just for the building itself?

It would depend on where you are in the contry. Here is a link to average build costs by area. They even list a movie theatre as a building type. I have checked with several builders in my area and they have all given basically the same number as listed on this sheet. This is building only and not equipment or decor.
http://www.buildingteamforecast.com/article/CA6393432.html?industryid=43720


[This message has been edited by dsschoenborn (edited January 24, 2008).]

Geez Old Bob.... what's wrong with a little sex, nudity, and depravity? The best plexes these days are much smarter than you imply Bob. The ones that I see are showing everything from art to live remore Metropolitan Opera. Years ago they did pass on stuff but it turned out to be bad business for them. Which film opened the plexeyes? Pulp Fiction. After that pic, there was no genre or type that a smart booker would not go after. And.... there was sex.... of a sort. Relying on a competing plex to practice narrow or stupid (IMHO) booking to justify your theatre's existence would be as dangerous as opening The Pirates Who Don't Do Anything! Check out this AMC in Jacksonville, Fl. http://www.movietickets.com/house_detail.asp?house_id=5706 and try and suggest they do narrow programming.

Speaking of Old guys: have you ever seen Old Greg? Youtube smash? Bob: do not look at this or you'll have bad dreams! http://uk.youtube.com/watch?v=h0S6vL0-u58

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Michael Hurley
Impresario

[This message has been edited by Mike (edited January 24, 2008).]

[This message has been edited by Mike (edited January 24, 2008).]

Hey Mike! I like sex as well as the next guy. But I prefer not to splatter it all over the screen.

I'm sure there may be exceptions to what I said. I'm glad to see what AMC is doing. I never worked for them and was basing my comments on those companies I worked for. AMC must have bookers that have backbones.

But I would still encourage an exhibitor to look beyond "Hollywood" and be more creative. It'll mean he will have to do his own promotion but that's way it used to be.

How's your theatre sale coming? I see it's still on the market. Wish I had the money.

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Bob Allen
The Old Showman

When you have 25 screens to fill you play everything! You can't have Cloverfield on 10 screens!

re:sale. www.templemovies.com It is still for sale but I now have a great manager. I sold off a back piece of property from the lot for a number with six digits so I have cash to add in and we'll be putting in a 3rd screen in the next months. Plus some other ideas. Great spot for someone who wants to live in Houlton, Maine.

WHAT IS THE CURRENT PRICE FOR THE TEMPLE?

The theatre and real estate is offered separately or in whole. Theatre and building with small amount of property $395,000.00. Entire property and business $495,000.00.

Qualified inquiries only please. Full financial disclosure will be provided. Please contact:

Michael Hurley 800-545-8956 www.templemovies.com

Write: 93 Maine Street, Belfast, Maine 04915