When it comes to raking in the big bucks at movie theaters, it is the popcorn, candy and drinks that deliver; not the movie stars, exploding cars and budding romance of summer blockbusters.
Although millions of people left their homes to see blockbuster movies in the theater this summer, theater chains such as United Artist, Carmike, and Cinemark did not turn a profit from the ticket sales.
“The majority of box office receipts are kept by the distributors rather than the actual movie theaters,” Allison Powell, a director for Cinemark Theater said.
Movie theater companies sell concessions to make money.
“The movie itself is the loss leader. It is meant to get people into the theater. The theater makes its money selling refreshments to the movie audience,” Marshall Brain an economist for United Artists said.
Because theater chains depend on concession sales, they are willing to experiment and find refreshments the audience will buy.
“Fresh fruit was a disaster,” Marc Pascucci, senior vice-president of marketing for Loews Cineplex Entertainment said.
“As much as people say they want something healthy, they don’t.”
87 percent of frequent moviegoers buy something when they go to the movies Cynthia Yelvington, a marketing analyst for Nestle, said.
The Nestle Corporation conducted a theater survey to see what concessions were the most popular and what people bought them.
The survey found 78 percent of the frequent moviegoers buy a drink, 68 percent buy popcorn and 43 percent buy candy.
While there are a variety of choices for a variety of tastes at the concession stand, certain trends are apparent.
Teenagers buy the most of everything and the over 50 group buys the least of everything according to the Nestle study.
“Nachos and hotdogs appeal almost exclusively to the under 25 group,” Yelvington said.
While the majority of moviegoers buy something at the concession stand, the 22 percent of those who don’t are turned off by the price.
“The price of food at the movies is absurd,” Jorden Cavanaugh, 22, a senior from Seattle, Wash., majoring in Marriage, Family and Human Development said.
Many movie theater companies have come up with ways to make concessions cheaper and still stay profitable. They offer free refills on large items and coupons.
“We could change our admissions price to 15 dollars to stay profitable, or we could charge what some people think is too high for popcorn,” Wally Helton, the vice president of United Artist said.
