December 11, 2012
The Concession Stand
Most people probably believe that the bulk of theaters profit is made from ticket sales. When in reality the main profit of individual movie theaters comes from their concession stands. As I previously mentioned in my earlier post ticket sales are mainly credited to the movie studios not the individual theaters. This is why prices for concessions are usually more than the ticket itself. Without the pricey snacks, most movie theaters would not stay in business. This is why theaters like Cinemark charge $6.50 for a fifteen cent bag of popcorn. Almost eighty-five percent of movie theaters profit is made from the theaters concessions. Sadly this is the only way theaters can make substantial profit.
Links Used:
http://www.cinemark.com/values-concession.aspx
http://business.time.com/2009/12/07/movie-theaters-make-85-profit-at-concession-stands/
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