Economy leads to theater goers making smaller-scale concessions decisions

Two theater chains have reported that income from concessions sales were down as people going to the movies opt for smaller sizes or fewer snacks because of the economy in the U.S. Both chains expect that to turn around in the fourth quarter, bolstered by the films that are playing, which they say is the primary driver of food sales.

Concessions are where theaters make most of their money since the studios take a large percentage of ticket sales. That’s why it costs twice as much to get popcorn, soda and candy as it did to walk in the door in the first place.

One thought on “Economy leads to theater goers making smaller-scale concessions decisions

  1. Hey Chris – hope you’re doing well in the new job. Actually, it costs that much to get popcorn because the person in front of you in line paid it. The fact that the theater owner needs to make a profit is not coupled in any meaningful way with people’s tolerance to pay for snacks.

    The theater operators are whistling past the graveyard here. They blame movie quality for the fact that they have finally tried to raise prices so much that the guy in front of you in line WON’T pay it and instead of changing their pricing to reflect demand, they are hoping “better movies” will make their problem go away.

    Good luck with that.

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