Premium Dining in a Movie Theatre Setting
By Susan M. Cross & Meredith A. Ely

The concept of dining in a movie theatre setting used to be an oxymoron; it simply wasn’t thought about. But with the advent of megaplexes, giant lobbies, and more emphasis put on foodservice, fine dining is fast becoming a part of movie theatre concessions.

Indeed, who hasn’t rushed through a meal to get in the car and drive to the theatre to make a show time, or realized midway through the meal that there was no way to make the movie on time? General Cinemas is addressing this need through two new ventures: the Premium Theatre, which debuted in April 1998, and a joint venture with Cinema Grill.

Lifestyle and time constraints faced by moviegoers are also affecting the way that customers need to be served. "There is a statistic that 60 percent of people who go to the movies on a weekend either eat out before or after the movie," notes Phil Dinecco, director of new business ventures for General Cinemas. "That’s a huge percentage, and we wanted to capture some of that market."

Leather seats, an extensive wine list, rich, chocolately desserts, zesty pastas and prime rib sandwiches. The newest concept in movie theatres combines a screening room complete with waitstaff service and a restaurant with a full-service bar at General Cinemas’ premium theatre, located just outside of Chicago.

With private, marble-inlaid bathrooms, and 70 seats nestled in pairs inside the theatre, the premium experience caters to the most discerning movie patron over the age of 21. The $15 ticket price includes valet parking; private entrance to a lounge with coat check and concierge; access to an upscale bistro and bar; and an intimate theatre with leather seats, with small tables for beverages and snacks. Patrons receive free popcorn and attentive waitstaff can provide appetizers, entrees, desserts and all types of alcoholic and non-alcoholic beverages in the restaurant or in the comfort of the theatre seat.

"We are trying to bring back the charm of going to a movie, and more people are looking for one place to go when they go out," says Jamie Bauer, General Cinema’s premium concept manager. Obviously General Cinemas tapped into a common concern, as 98.2 percent of ticketholders eat at the restaurant or during the movie in the theatre, and as of January, per caps were reported at $18.24 per person.

"People love it here because they feel spoiled," says Bauer. "We have regulars every Saturday night, and our gift certificate sales have been amazing because people want their friends to come and experience this." Gift certificate sales for the premium theatre generated $40,000 during the holiday season alone.

Bauer brings 20 years of foodservice experience with companies like Levy Restaurants and Lettuce Entertain You Enterprises to the concept. A chef and sommelier, Bauer takes a hands-on approach to the menu and wine list, as well as the design of the kitchen and bar.

"We’ve proven theatre concessions can go a whole new way," says Bauer. "People like to munch and watch a movie, so our menu reflects items that are easy to eat in the dark and are not too aromatic." Food odors can absorb into the non-washable carpeted walls housing the THX sound system.

"Developing this menu was a lot different than in an average restaurant and we want it be enticing," says Bauer. She explained that tried-and-true favorites like spinach and artichoke dip with multi-colored tortilla chips, penne pasta and shrimp dishes are popular choices to eat in the theatre and still taste flavorful if they are not eaten right away. Complete with a wine list, domestic and import beers, liquors, branded coffee drinks and sodas, the beverage options are endless.

Evolutions in the menu in the past six months include switching from deep-dish to thin-crust pizza (the thin crust was more presentable) and adding more meat dishes to the menu to please Chicago’s meat-loving patrons.

Appetizers like crab rangoon and satay and a complete handmade dessert tray presented to your table are popular options for the late show, but 71 percent of patrons still order complete meals prior to or during the later show and over 94 percent order drinks in the theatre. Service inside the theatre stops with the conclusion of the trailers, but moviegoers are welcome to go out to the bar and order drinks or food.

Local and national media trumpeted the theatre’s opening and media coverage persists even after the initial buzz. In fact, the theatre has been featured on "Good Morning America", "The Tonight Show", and in the Wall Street Journal. Word-of-mouth keeps it at the top of Chicago movie patrons’ minds.

"For $15, anyone can have a chance to be elite—it’s an affordable luxury and a memorable evening out," says Brian Callaghan, General Cinema’s public relations manager.

While many people come for the first time content to merely experience this new theatre, most want to see a movie that interests them, so movie selection is critical, according to Bauer. "I have to keep my audience’s movie preferences in mind when choosing a film," says Bauer. "We cater to the more serious filmgoer."

Typically movies rotate on a weekly basis, but depending on the movie and the response, she will keep the movie in the theatre for an additional week. "People aren’t going to just come here and sit through a movie they aren’t interested in," says Bauer.

She explained that Friday and Saturday nights are the busiest and commonly sold out, followed by Thursdays. Her 32-person staff is in full-force on the weekends, with 12-14 people working during the less-busy weekdays. Companies have used the theatre for private parties and screenings during the week.

With the ability to track reservations through phone numbers, Bauer cites 38 percent of premium cinema patrons come from the city of Chicago, while the remainder hail from surrounding suburbs such as Oakbrook and Naperville. Considering the wealth of entertainment choices in Chicago and the 25-mile trek to the theatre, that percentage is impressive.

A second Premium Theatre, a three-screen with a central restaurant, opened in February in Baltimore. A third location is set to open in May in Milwaukee.

The concept of dining in a movie theatre environment is not a new one. Twenty years ago, brothers Jim and John Duffy founded a concept now known as Cinema Grill, a combined movie theatre/restaurant with tiered seating and a full-service waitstaff. Guests order beer, wine, or soft drinks and food, including appetizers, salads, sandwiches and desserts while enjoying an intermediate run movie. "We’ve just expanded the market share of the movie industry," states John Duffy, vice president of Cinema Grill. "We carved out a niche of our own."

Cinema Grill is a privately held company based in Atlanta, which presently operates 27 Cinema Grills in 14 states, with a strong presence in the Southeast, Midwest and Colorado. Cinema Grill has two company locations, along with nineteen franchise operations. "We’re the only company that franchises in the movie industry," states Duffy.

Cinema Grill locations are usually in older, established areas that have at least 100,000 people within a three-mile radius and 200,000 people within a five-mile radius. "We’re looking for a middle to upper middle income," states Duffy. "Unlike many movie theatres, we’re not looking at teenagers as a primary market. We’re going after an over 21 market that is looking for the convenience of dining and the movies in one place." Duffy says he has seen an increase in the amount of families attending Cinema Grill locations.

The locations can vary from two up to eight screens, and are usually conversions from existing buildings. Conversions have included older movie theatres, grocery stores, and small department stores. "The trend now is to develop megaplexes of fifteen screens or more, and there are those smaller 2, 4 and 8-plexes that find it difficult to compete," states Duffy.

With tickets priced at half of a first-run admission, the food and casual atmosphere are the main draws. "We think of ourselves as more restaurant than we do movie theatre," states Duffy. "A lot of times we get characterized as a theme restaurant." The waitstaff provides service throughout the entire movie, although most patrons dine before the movie begins. Dincecco adds, "You’ll be amazed at how unobtrusive that service really is."

Cinema Grill’s profits are made primarily through food and beverage, according to Duffy. Food and beverage sales account for 60-70 percent of revenue, with approximately 50 percent of that from food alone.

Cinema Grill has entered into a joint venture with General Cinemas to change some existing older theatres to the Cinema Grill model. "We saw the Cinema Grill concept as a way to revitalize our older theatres and go after the dining market," explains General Cinema’s Dincecco. "We’re looking at theatres where we have a 3,6 or 7-plex and where the competition has come in and put in 20 screens."

"We decided to tie in with Cinema Grill, a company that had been doing this since 1974 and had the expertise," he continues. The new theatres will be consistent with the other Cinema Grills, and will not carry the GCC name. The first theatre of the venture is the Aurora Cinema Grill in Seattle, which opened this spring. It is a three-screens, and will include a lobby bar. The joint venture hopes to have 5-8 locations open by the end of 1999.

"It’s a great marriage," says Duffy. "We had been approached by other major circuits, but like the diversification, background and experience of General Cinema." Duffy states they are also in negotiations for a European Cinema Grill concept.

Both the premium theatre and Cinema Grill concepts lead the way in the evolution of movie theatre dining as savvy customers demand more sophisticated food choices.