Quote:
Originally Posted by Calgary14
Every theatre is a bit different but generally the margins are closer to 96%, the actual product costs next to nothing - popcorn is basically seeds and pop is sugar and water.
The concessions are the money maker for any theatre and the big name movies just get people in the door
Source - colleague who owns a theatre
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If true, that has to be ignoring all other costs other than the material cost of the concession items, which is no way for a business to calculate their actual margin. Those buildings are huge and are probably second only to churches for how inefficiently they're used. Sale of concession items subsidizes all the times the building is costing the owner money, but not generating any income (mornings, most weekday matinees, etc.).