Quote:
Originally Posted by bizaro86
Makes sense. I bet a lot of people sign up because it seems like a good deal. Then they either skip a month (100% profit) or end up going to movies they wouldn't have gone to otherwise.
Cineplex splits the money from tickets anyway, so discounting that makes sense. But when you go to an extra movie you might buy $24 worth of treats at 96% margins.
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From my knowledge of concessions (which isn't none, but also not directly in the theater industry) it would be closer to 25% profit on the snacks. Facilities/Equipment that sit empty / unused for most of the day cost a lot, and staffing for demand surges is expensive. Lots of overhead in that industry, when compared to your home microwave. The one they do have going for them is a generally captive consumer base that is not attending based on snack costs, so they do get a very very healthy margin above 20%.