Category Archives: Concessions

AMC’s Premium Recliner Seating Plans Revealed

AMC recliner seats

A week after Regal announced that it plans to convert 25% of its screens to luxury seating, AMC has provided details about its plans for reseating. While the Chinese-owned exhibitor is not committing to a particular screen percentage target, the ambition is great for the cinema chain that in many ways kickstarted luxury reseating trend amongst the major exhibitors. AMC also continues to stress that reseating is only a part of its overall enhanced guest experience.

While attendance and box office was down for AMC in the forth quarter of 2014 (by 4.3% and 4.5% respectively), as well as for the year as a whole in line with the rest of the industry, the exhibitor managed to eek out an overall increase thanks to better concessions spend. AMC’s food and beverage (F&B) revenues per customer increased by 13.5% to $4.46 in the last quarter of 2014, a record high for the company.

Speaking at the Q$ 2014 earnings call (transcript by Seeking Alpha), CEO Gerry Lopez reminded the analysts listening in that when the reseating initiative was started three years ago it was not universally well received. “I don’t think I can use over an open line some of the adjectives and some of the names that we were called for this notion of taking two-thirds of the seats out of an auditorium,” he said. Yet today, “we’re seeing the same things that you are seeing which is everybody’s announcing them and everybody is doing them.”

At the end of the 2014 calendar year AMC had refitted or installed luxury recliner seats in 598 screens across 53 theatres, which represents an increase of 51% on the previous year. The reseated theatres are said to have delivered an increase in admissions of 13.8% on a per screen basis, compared to an average industry decline of 4.3%, in the last quarter of 2014.

Looking at the year as a whole, AMC claims that reseats delivered a 25.3% increase, compared to an industry slump of 5.6%. Taken together reseats thus delivered an 18 and 31 point outperformance for the quarter and the year.

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UK Cinema Spending Habits and Intentions Revealed

YouGoc UK cinema spending 1

British polling company YouGov has published a report that details the spending patterns and intentions of UK cinema goers. The findings reveal regional variations and an overall positive outlook, though cost is a factor in some people choosing not to frequent the cinema.

YouGov’s Film and Cinema Evaluation report profiles individual cinema spending above and beyond the cost of the cinema tickets themselves. As well as covering obvious extras such as concessions and drinks, but also related required spending on ‘sundries’ such as parking (and babysitting?).

Perhaps not surprisingly the highest spending is in the capital, given that London has the most expensive cinemas as well as related real estate, parking, etc. Total spend is GBP £8.78 per head per visit in London, while the traditionally poor region of Wales has the lowest spend at GBP £6.86.

The study further broke down spending into categories based on frequency of cinema going.

The study assesses who is going to the cinema and with whom, when and where people go, what they watch and why and how much they spend. It also analyses how people find out about new films why they choose to watch what they do, what genres and actors different groups are interested in and how cinemagoers’ profiles vary film by film. YouGov spoke to over 5,000 people in the UK aged 16+ for the research.

YouGov found that not only do men (£8.29) spend more than women (£7.39), but that people who visit the cinema more frequently, typically spend more on items other than tickets (e.g. popcorn, drinks, etc.). “Heavy” cinema users have the largest outlay on sundries, spending an average of £9.15, compared to £8.02 for “medium” users and £7.04 for “light” users.

Perhaps not surprisingly “Heavy” users are more likely to be found in London, again either because London offers greater choice of cinema and films or because people who want a wide cinematic choice gravitate towards the capital.

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Cinema Concessions Calorie Count Coming in 2015 – NAC Responds

Popcorn calorie count

When you go to see “Star Wars VII: the Force Awakens” at a Regal Cinema next year you will have the choice of watching it with a 960 calorie large tub of popcorn (with optional 260 calories “buttery” topping), a 500 calories 54 ounces soda, a 650 calories hot dog or perhaps a 716 calories nachos with cheese. Or if you prefer Marcus Theatres’ Big Screen Bistro, perhaps a glass of Sycamore Lane Chardonnay at 123 calories with a 12″ Pepperoni Special pizza at 215 calories per slice or 1,720 for the whole pizza.

That is because from 1 December 2015 all US grocery and convenience stores, fast food restaurants, amusement parks and, yes, cinemas with 20 or more locations will be required to display calorie information next to each item on their menu. This is the result of a U.S. Food and Drug Administration rule linked to the Affordable Care Act, also known as ‘Obamacare’.

Here is what the FDA News Release had to say on the issue:

The menu labeling final rule applies to restaurants and similar retail food establishments if they are part of a chain of 20 or more locations, doing business under the same name and offering for sale substantially the same menu items. Covered food establishments will be required to clearly and conspicuously display calorie information for standard items on menus and menu boards, next to the name or price of the item. Seasonal menu items offered for sale as temporary menu items, daily specials and condiments for general use typically available on a counter or table are exempt from the labeling requirements.


The menu labeling final rule also requires covered establishments to provide, upon consumer request and as noted on menus and menu boards, written nutrition information about total calories, total fat, calories from fat, saturated fat, trans fat, cholesterol, sodium, total carbohydrates, fiber, sugars and protein.

Vending machines have an additional year to comply with these requirements. But are cinemas ready for this?

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CineEurope 2014: Coca-Cola Seminar – Reasons to Believe

Coca Cola Presentation at CineEurope 2014

The single most important food and beverage (F & B) company for the exhibition industry hosts its seminar at CineEurope 2014 on how to reach and engage with consumers. I have seen their talks at Cannes Lions (where I was yesterday – hence why no first-day CineEurope coverage) and they really do make you believe that there is so much more to their business than just selling brown sugar water. Having one of the world’s most iconic brands obviously helps and the “Share a Coke” name-on-a-bottle campaign is pure marketing genius.

Corinne Thibaut is upfront about the challenge of a declining youth cinema attendance. “We need a new marketing approach,” she says, to engage a new generation, and “to capture the imagination of moviegoers.” She then hands over the floor.

Javier Sanchez Lamelas, European Marketing Director of the Coca-Cola Company takes the floor and announces the theme of his talk: “falling in love with cinema.” Rather than talk behind the lectern, he walks out amongst the audience. He shows amazing exams of how Coke promotions date back to anaglyph 3D glasses in 1914! Shows the “Skyfall” 007 Countdown challenge video which was viewed 10 million times on YouTube. The audience here at CineEurope loves it. Mainly because it is good.

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London Cinemas’ Food Hygiene Scorecard: Quite Good, but Room For Improvement

Westminster London cinemas hygiene scorcard

With cinema attendance plateauing or stagnant in most developed markets, exhibitors are turning to ways to extract more money from the patrons that still frequent cinemas. Concessions is the most obvious way, which is why the last decade has seen a proliferation of in-theatre cafes, bars, stand-alone ice-cream counters, gourmet food and cinema-dining.

While price is still the major complaint for most cinema goers, with sugar, trans-fats and GMO issues only starting to bubble up, should cinema goers in fact be more concerned with food safety? The recent reporting of cockroaches in a Cineworld near Manchester led to questions about food safety practices in major UK cinemas.

To get to the bottom of the issue, Celluloid Junkie filed a Freedom of Information (FoI) request with London’s Westminster Council for all documents relating to food safety issues in central London cinemas for the past four years. The findings were reassuringly positive with overall high standard. However, not all exhibitors scored equally highly and historically there have been  lows. Our findings might still surprise you.

Scores on the Doors

The details about the food hygiene standards that we received from Westminster Council are neither a secret nor should they come as a surprise. With Westminster depending on tourists and Londoners spending billions of pounds (yes, billions) each year in the shops, bars, restaurants, theatres (plays and musicals) and cinemas, the council has a particularly high interest in ensuring that strict standards are being observed.

This is not to say that other councils might be more lax, but that Westminster is unique in the the whole of the UK in terms of acting as a magnet for bar, club, restaurant, cinema and theatre goers.

Westminster cinemas also have the UK’s highest ticket prices (Leicester Square ones in particular), but are also the ‘red carpet’ cinemas, so they occupy a special position in the UK cinema pantheon.

As such Westminster Council was an obvious participant in the Scores on the Doors scheme, whereby its 1-5 ratings is posted on a certificate to be displayed prominently, as well as on the website. Unlike the Westminster Council documents released to us, however, it does not a provide a detailed breakdown and only covers the most recent inspection.

A Few Caveat To Begin With

There are several things to be noted before we analyse the figures and findings. First of all, this is not a survey of all the cinemas in London but only those in Westminster Council in the centre of London. Health & Safety is a Council matter in the UK and while UK cities like Leeds or Glasgow have councils that more or less cover the whole city, London is split into many boroughs and councils. Westminster is the most central and with the highest cinema density in London, including the famous Leicester Square in the West End.

This means not all London cinemas are included and there is a slight imbalance in the exhibitors represented. Odeon has no less than four cinemas included, but Vue only one as the two Westfield Vues and also the O2 lie in other boroughs. Westminster does not even include all of central London cinemas, with Odeon Covent Garden just one block away from Curzon Soho, but in the Borough of Camden. It would not have been practical to get information from all London councils as there are 32 boroughs in the Greater London area, plus the self-governing City of London, which houses the Barbican cinema.

Secondly, it should be noted that the survey were conducted at different times and are not an annually recurring event. Inspections which result in a low score or major recommendations usually see a follow up, but a cinema that scores well is usually not re-visited for a few years. We have thus taken the last four years into consideration, averaging scores but also recognising the most recent scores as the most relevant in practical terms.

Top of the Class: Prince Charles and Apollo

The highest score of any cinemas in Westminster was given to the Prince Charles Cinema and the former Apollo Haymarket, who both got five out of five in 2012.

The former might be a surprise but is a testament to a well run small independent cinemas. Situated on a narrow pedestrian street behind Leicester Square, the Prince Charles Cinema specialises in showing older film at a discount price, as well as specials like Rocky Horror Show or Sing-along Sound of Music and festivals and themed screenings. Comments that were made were of a minor nature, such as bag of popcorn stored on the floor of the storeroom, which is a no-no for any food.

Apollo Haymarket is part of the boutique mini-multiplex chain acquired by Vue in 2013. While the cinema has re-branded and is now Vue Haymarket, at the time of the inspection it was still Apollo Haymarket. With a focus on bar, cafe and high-end snacks, it is good to see that the then Apollo’s attention to detail extended to all aspects of health and safety when it comes to concessions. We trust that this has continued as part of Vue. Comments were minor points; again popcorn bags stored on the floor and the ice scoop left lying on top of the ice.

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America’s Greatest Cinema Export to China Is Under Threat (Not Movies, Popcorn)

Chinese and american cinema audiences

Could Chinese authorities be about restrict imports of the quintessential multiplex staple imported from the United States?

No, we are not talking about movies or Hollywood; the greatest American export success to Chinese cinemas does not come from California but from the fields in Nebraska.

Different Attitudes – Changing Habits

Nothing illustrates the difference between Chinese and American cinema goers more than the respective attitudes to 3D and popcorn. While American audiences are increasingly turning their back on 3D, their appetite for concessions appears undiminished, to the point of circuits like Marcus and Laemmle installing larger seats to accommodate the expanding backsides.

Meanwhile, the challenge for Chinese cinemas is how to get people to consume more concessions to match their seemingly insatiable appetite for 3D films and thus increase average revenue per cinema visit. But a change is already underway.

The importance of popcorn to the growing Chinese cinema sector was highlighted by the recent revelation by Dalian Wanda Group that nationwide popcorn sales for its Chinese cinemas totaled 390 million yuan (USD $62.8 million) last year.  This amounted to 72% of total concession sales and 9.5% of its total earnings of 4.1 billion yuan. (By way of comparison Wanda’s American chain AMC earned USD $1,847 million from ticket sales and USD $787 million from food and beverage in 2013, with concessions thus representing over 28% of total revenue.)

The push to pop in China is understandable because the ingredients for a bucket of popcorn cost just 3 yuan (US$0.48) while selling for 20 to 30 yuan (USD $3.22-$4.83). Huang Qunfei, general manager of the Chinese exhibitor Beijing New Film Association,  was quoted by Xinhua as saying, ”It is very common to have an 80-percent profit margin in selling popcorn due to its low costs. Although tickets sales make up the largest share of revenues, popcorn and snacks can sometimes contribute more to profits.”

Sales of popcorn accounted for as much as 20% of the total revenue of Chinese cinemas turnover in 2013. Wanda is the largest but not the only circuit benefitting from growing popcorn demand. Quoted in the Want China Times:

An executive at the Beijing UME Cineplex stated that popcorn and beverages were usually the only derivatives sold at domestic cinemas and that the complex’s popcorn sales accounted for 10% of its total revenue of at least 30 million yuan (US$4.8 million) last year.

However, the issue of concessions is complicated by the increasing tendency by Chinese cinemas to bundle cinema tickets, popcorn and sodas as one combo.

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Vista Serves Up The Future of In-Seat Ordering

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I am always pleased when an email arrives from Murray Holdaway and/or Derek Forbes. They are, respectively, the CEO and President of North America for Vista, an entertainment software company primarily known for the popular point of sale system they developed specifically for movie theatres.

In a market that suffers no lack of strong competitors, Vista has been one of the more progressive and innovative companies in the space. So when an email from Murray or Derek turns up, it’s a safe bet it contains something worth reading.

That was not the case this past Tuesday when Derek sent an email that simply read “I thought you might enjoy this video.” My initial reaction was that I should get in touch with Derek and let him know his email had been hacked by someone who was no doubt interested in selling a drug that could enhance various parts of the male anatomy.

Upon reading the only other sentence in the email I realized it must actually be from Derek himself. It read, “Hope to see you in Vegas next week”; a direct reference to CinemaCon which is being held next week in, you guessed it, Las Vegas.

The video Derek linked to, which is embedded above, had been posted by Vista USA’s YouTube account less than a day before. It only lasts a little over a minute, but it left me speechless. Somehow Vista had figured out a way to deliver concessions directly to patrons in their theatre seats through the use of unmanned drones. I always knew the company was technologically savvy, but automated conveyance of cinema concessions could revolutionize the industry by saving theatre owners millions in payroll. Why hadn’t anyone ever thought of it before?!

I immediately watched the video again and began to see a few flaws in the concept. Specifically, the unmanned drone is a little wobbly, making it almost certain a soft drink or popcorn will eventually get dropped onto an unsuspecting patron. If the cinemagoer were watching a movie like “Cloudy With A Chance of Meatballs” this could be an immersive enhancement which Vista could ultimately charge for. They could call it 4D, if someone hasn’t already trademarked that name.

It got me thinking, could Derek’s video actually be of a real product offering being launched at CinemaCon? This would be just around the time that we’d all be hearing about new products.

The reality, of course, is that the video was Vista’s spoof on Amazon’s announcement last December of Amazon Prime Air. You might recall Jeff Bezos, Amazon’s CEO, telling the news program “60 Minutes” of the company’s intention to deliver lightweight orders to customers via unmanned arial vehicles (see below).

So though I may have suggested Derek’s email wasn’t worth reading… I never said it wasn’t worth watching. I’m just glad the video wasn’t some elaborate hoax meant to get Vista some (hopefully) humorous media attention. That kind of stunt rarely ever works.

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UK Cinemas Are High Profile Targets For Anti-Sugar Campaigns

concession table UK

Calorie and sugar levels in UK cinema snacks

Having looked at challenges facing United States exhibitors relating to carbonated sugar beverages (Cinema’s Dangerous Addiction to Sodas), it is now time to examine the situation in the United Kingdom. The issue has come to the forefront with an article in the Daily Mail’s This Is Money section titled “The 35 teaspoons of sugar in a box of cinema popcorn: Cinemas slammed over supersized snacks“. The piece highlights the amounts of sugar found in the concessions offering of the UK’s Big Three (Cineworld, Odeon and Vue).

Coming hot on the heels of the new recommendations from the World Health Organization (WHO) to cut daily intake of sugar by half, the statistics in the Daily Mail’s article make for sobering reading. Effectively a UK cinema goer could consume his or her entire weekly sugar “allowance” in just one cinema visit, if they buy a soda and a popcorn. From the article:

A 200 gram box of toffee popcorn at Cineworld comes in at 840 calories and 121 grams of sugar, equivalent to about 30 teaspoons. Adding a 32oz Coca Cola carries an extra 407 calories and 101.2 grams of sugar, or 25 teaspoons.

A large bucket of sweet popcorn at Odeon cinemas amounts to 1,005 calories, which is more than half of a woman’s recommended daily intake. And at Vue, a 200 gram tub of toffee popcorn contains 138.9 grams of sugar, which is equivalent to about 35 teaspoons.

UK’s Weight Watchers has thrown its, um, weight behind this criticism, with a call to ban ‘super sized’ serving portions, as part of its ‘Slim Our Snacks’ campaign. Quoted in The Mirror:

Actress Patsy Kensit, 44, who is 9 stone (126 pounds or 57.2 kilos) after shedding 14 pounds with Weight Watchers, said: “The full-sugar fizzy drink and popcorn sizes are ridiculous.”

WeightWatchers’ Zoe Hellman said film fans should not be faced with “blockbuster-sized sugary and fatty foods”.

Cinemagoers Enjoying Concessions

While in the Daily Mail article:

Weight Watchers spokesman Angharad Massie said: ‘Cinemas are inherently family focused spaces, yet we all recognise them to be one of the worst spaces for promoting portions of high fat, salt and sugar snacks with little or no choice of healthier alternatives.’

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Cinema’s Dangerous Addiction to Sodas

The Killer Inside Me -  Photograph: Mario Tama/Getty Images

The Killer Inside Me – Photograph: Mario Tama/Getty Images

The past couple of months have not only seen the 50th anniversary of the Beatles appearing on the Ed Sullivan Show and the premier of Stanley Kubrick’s nuclear satire Dr Strangelove: or, How I stopped Worrying And Learned to Love the Bomb. It is also 50 years since the landmark report Smoking and Health: Report of the Advisory Committee to the Surgeon General, delivered on Saturday 11 January 1964, so as not to rock the stock markets but also to get maximum publicity in the sunday newspapers. Five years later cigaret ads were banned from radio and television. You’ve probably seen it featured on Mad Men.

This anniversary should make exhibitors ponder whether they too will soon find themselves on the wrong side of history when it comes to sodas and sugary drinks. The initial battle may have been won by Big Soda, but it is becoming increasingly clear that there is a long war ahead.

Defending ‘Freedom’ and ‘Choice’

NATO President John Fithian delivered a robust response to New York Mayor Bloomberg’s attempt to ban large cup sizes of sodas, in his keynote at CinemaCon’13, devoting an entire paragraph of his speech to it:

Cinema patrons deserve the freedom to choose the food and beverages they want. That important consumer choice extends to serving sizes as well. I congratulate our associates at NATO of New York for their successful law suit against Mayor Bloomberg’s attempt to regulate consumer choice. If a patron wants to splurge and have a big Coke, they can. Or if they want a healthier option, they can make that choice too, without the government choosing for them.

That’s five uses of the word “choice” in just one paragraph, as well as the all-important term “freedom“, in framing the conflict as one between individuals’ freedom of choice against government attempt to regulate and remove that choice. This argument won the day in the courts, as reported by FJI’s Concessions Editor Anita Watts:

The biggest news of late on drink size restrictions in New York City is that they were struck down again. On July 30, the First Division of the New York State Supreme Court’s Appellate Division upheld the first ruling against the ban, saying the proposed law was unconstitutional. In March of this year, New York Supreme Court Judge Milton Tingling had ruled that New York City could not enforce the ban. His decision came a day before the ban was set to be enforced. Tingling called it arbitrary, capricious and beyond the city’s regulatory powers.

Exhibitor’s won the battle in courts and with Mayor Bloomberg replaced by Mayor de Blasio, who is more worried about the size of income inequality in NYC than by size of servings of Pepsi, the battle might seem to be over (1). But far from it.

NY, CA, SF, VT, HI and Mexico

This month it has become evident that the battle has merely shifted from New York and gone east and south, where it looks likely to find more fertile ground. California is the first US state where sodas could be forced to carry warning labels, just like cigaret packets do, according to the Sacramento Bee.

California would become the first state to require warning labels on sodas and other sugary drinks under a proposal a state lawmaker announced Thursday.

SB1000 would require the warning on the front of all beverage containers with added sweeteners that have 75 or more calories in every 12 ounces. The label would read: “STATE OF CALIFORNIA SAFETY WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay.”

Picture that facing movie goers lining up to buy concessions or on the side of the 16oz cup of soda dispensed in the multiplex, blocking part of the Avengers 2 promotion. But with the law proposal enjoying the backing of both the California Medical Association and the California Center for Public Health Advocacy, it is hard to argue against it. Not least as it does not technically infringe ‘choice’.

This is not a lone law attempt to tackle soaring obesity levels in North America:

- Vermont proposed a similar law last year, which is currently held up in the Committee on Human Services;

- San Francisco is proposing a referendum to approve a tax on soda and other sweetened drinks at a rate of two cents per ounce;

- Similar proposal to SF’s were previously put forward in Richmond and El Monte (a Los Angeles suburb), but were defeated by the drinks industry;

- A Soda Tax was approved in Maine in 2008 but repealed two years later following “a major lobbying effort from the American Beverage Association. Voters in Washington state similarly reversed their legislature in 2010″ (link);

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Popcorn In Slow Motion

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