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TOPIC: Cafe projection for all you coffee and cake eaters

Cafe projection for all you coffee and cake eaters 13 Feb 2003 22:43 #28107

Tryin' to put together Business plan on 4-5 multi-plex with a high brow cafe attached. Anyone pros out there doin' it?
If X number of customers come to theatre, how many will visit Cafe(on premisis) after the show.? What will they spend(per capita) on average if you have Starbucks or Seattles Best type operation with some delicious cakes available for sale as well.

Thanks

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Re: Cafe projection for all you coffee and cake eaters 14 Feb 2003 09:56 #28108

  • poppajoe
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Have you thought about serving while the movie is showing? I seem to think that people who come to the movies like to snack while they watch the show. Although you may get some of your patrons to stop in after the show, I think many more would choose to leave. But then again in would depend on the crowd (what age group on any given night), the location (whether in where a small town or large city), and the time each show ends. Just some thoughts.
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Re: Cafe projection for all you coffee and cake eaters 14 Feb 2003 11:44 #28109

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One of the enduring struggles in the cinema industry is trying to get the public to buy more stuff. There are two ways to do this: As only 30% of the people who attend the cinema buy concessions, one way is to get the people who buy to buy more, or get the people who currently don't buy to start to buy.

A cafe is an excellent way to try and get people who don't buy to start to buy. The problem is one of perceived value. The people who don't buy generally find that buying food at a movie theatre to be a poor purchasing decision. This leaves the people who buy, buying more. But do you want to take a person who is buying a popcorn with a 1,000% markup and change them in to a person buying a piece of chocolate cake and a coffee with a 100% markup?

That said, this is how our cookie crumbles:

Popcorn = 45.19% of our sales (very high profit)
Soda = 23.59% of our sales (very high profit)
Candy = 6.73% of our sales (very low profit)
All other items = 24% or our sales (low profit)

Our other items are bottled water, coffee, lemonade, cookies, ice cream and the like.

Is your theatre near a collage campus or a bookstore? Will it be in a location where people will want to "hang out?" Would a cafe exist there without the movie theatre? If yes, then by all means, do it. If the answer is no, then I would take care of you fundamental business first.

In Europe it isn’t unusual to find that a theatre has a café that sells Sandwiches and Beer and Wine. This is an idea that may be worth exploring.
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Re: Cafe projection for all you coffee and cake eaters 14 Feb 2003 19:16 #28110

Okay, Okay let me back up. The theatre will have a meal service. (note: not typical concession stand ..although popcorn is available). The cafe fare will be available in the theatre, but will also be a free standing unit on the premisis. Instead of going out after, folks would be able to hit the cafe. Anyone doing this?.

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Re: Cafe projection for all you coffee and cake eaters 14 Feb 2003 22:58 #28111

  • RoxyVaudeville
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Check out the Allen theatre and MJs Coffeehouse in Annville, Pa by visiting www.allentheatre.com
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Re: Cafe projection for all you coffee and cake eaters 16 Feb 2003 01:51 #28112

  • swapman26
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Hi

As far as a "cafe" goes, some people like coffe vs Coke. Again, as far as coffe vs Cappicino or Latte, or other specialty coffe goes, the money is in regular coffee. I am not saying that you cannot offer special coffees, but where I come from, the money is in the regular coffee. There are those that want their coffee. If there are no other theatres around that offer such, it may be somthing that you could (should) capitalize on. (cappicuno, latte, espresso) My particular theatre has a separate "cafe" we are in the midst of either capitalizing on that feature, or shutting it down. I would like to capitalize on it. That is what makes us different, and hopefully "special".

We have been utilizing the cafe as a resource to the community. Offering coloring contests to the families with children. Having weekly "sign up and win" contests to those that sign up. (we destroy all entries after the sign up is completed)
And lately making the "cafe" a place to relax, or further enjoy your movie going experience before (or after) your experience.

Coffee houses are enjoying a lucrative business right now. Even tho we are a theatre, our coffe is comparatively priced against a regular coffe house. By giving my coffee going customer base a relaxing and entertaining experience, it just may soon add to my bottom line.

(I will say that evertime that we open the cafe, the line is longer than the concession stand line is) I think this a place to capitalize on!!!!!!!!!!!!

Swapman
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Re: Cafe projection for all you coffee and cake eaters 16 Feb 2003 02:13 #28113

  • Ken Layton
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Here in the Pacific Northwest, the McMenamin brothers in Oregon operate quite a few theaters with fancy food service and they do excellent business. Check out their website at www.mcmenamin.com
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Re: Cafe projection for all you coffee and cake eaters 17 Feb 2003 14:36 #28114

  • John Pytlak
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Rochester's Little Theatre, a five-plex art theatre, has lot of success with their cafe, that often features live jazz and the work of local artists and film lecturers:
http://www.little-theatre.com/history.html

John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services
Entertainment Imaging
Research Labs, Building 69, Room 7525A
Eastman Kodak Company
Rochester, NY 14650-1922
Telephone: 585-477-5325 Cell: 585-781-4036 Fax: 585-722-7243
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John P. Pytlak, Senior Technical Specialist
Customer Technical Services
Entertainment Imaging
Research Labs, Building 69, Room 7525A
Eastman Kodak Company
Rochester, NY 14650-1922
Telephone: +1 585-477-5325 Fax: +1 585-722-7243
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Re: Cafe projection for all you coffee and cake eaters 18 Feb 2003 11:53 #28115

  • Mike
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Dinner and a movie? It's a ntural idea. However: you don't want to hurt your foundation concession sales so make sure it's completely different or you'll be selling that 50% mark up instead of the 1000% mark up! There are many-many places that do this in one way or the other. But you always want a movie theatre to be near dining options.

Michael Hurley
Impresario
Michael Hurley
Impresario
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