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I live in Australia and have been in the movie theatre industry for almost 6 years, and am now 16. I know all the fine details of theatre operation, costs, marketing, film distribution, and can also operate 35 mm film and digital projectors. I am considering purchasing a single screen theatre which currently shows movies in their 5th-6th week of release at reduced prices. It only shows films once each night, and proves popular due to a lack of immediate competition, and it's affordability. I see greater potential within this theatre due to this lack of competition and the fact that the theatre hardly advertises its existence, and spends not a thought on its presentation.

Currently, the theatre pays two staff each session to operate, which I believe is a waste of money for a single screen. I would replace the two staff with one with projectionist training, and use a automation system on the film projector. I have calculated the various costs of operation and see it to viable. I am a full time student and am very dedicated to my study, however this would prove to be a source of income while i complete college and university and a creative outlet for myself to 'unwind'.

My question is should I do it, and do you have any advice?

Thank you for any input as it is much appreciated.

I am considering the same type of theater in a small town in Texas. I have done the numbers for a market area of about 4000. The numbers look good but, I lack all your experience. I do have 40 years of business experience and retail experience which make me confident of the results.

We currently have a movie theater in town that is a old Corral. It has wood boards on the fence posts to enclose the theater area. The screen is 4x8 sheets of plywood painted white. The 300 seats are old chairs and lawn furniture. They have wood bleachers in the back. A small building houses the concession stand below and the projection booth above.

Ticket prices are $5 for all(under 4 & over 85 free). Popcorn is $1 & $2, soda in cans $1, candy $1. The theater operates Friday, Saturday & Sunday. They only show G & PG shows, sometimes PG-13 but after first show on Friday if it is judged to vulgar, they close Sat & Sun. If it rains they close, shows start after sundown.

This Theater has been operating for 30 years and makes a profit
I don't have a good count on sales but, when running 1st run, opening weekend, they have to limit the crowed to 500 each night. Current run show get 200 - 300 a night.

If this is any help let me know and when you done with college get up here and help me run my new theater. It will operate when the Corral is not open in an empty church. I like the four months off in the Summer. I wish I had your experience and knowledge.
Nevada

bp3494 that sounds great! - I hope all plans work out well, I would recommend keeping pricing identical to that of the outdoor theater to keep competitive.

However on the other hand, the outdoor theater sounds great why not just give them an offer for the business? The old church may need a new air conditioner installed to make it comfortable for patrons, It would need a Projection box, and either two 35mm film projectors or one 35mm film projector and a platter or finally but most expensive a digital projector ranging from $90,000-$250,000. The building would also need a commercial sound system, comfortable seating, a screen, masking (black curtains around the screen), carpeting for acoustics, a newly built concession stand and ticket booth, and lastly a new sign!

Always remember that the film company gets from 20%-90% of every ticket sold, so if you sell a ticket for $5 to a newly released film you may only see $1 per ticket of the gross profit.

Anyway, I urge you consider offering to purchase the current theatre to save all the hassle of the fit out, equipment, and marketing etc. And don't worry you have 40 YEARS experience in retail just keep reading the forums on this website!

All the best, and if you have ANY question do not hesitate to ask,
thanks Sam.

Sam that sounds awesome. But just as a warning, NOTHING goes according to plans. I am 19 and a full time student as well and I own a single screen. And between school and work I have absolutely No life. Another thing that ive learned is, Never assume you know everything.