BoxOffice® Pro - November 2012

FIRST
PERSON
How independent theaters can stay afloat even
when a flashy new multiplex comes to town
GET COMPETITIVE
by Jeffrey Eisentraut, Eisentraut Theatres
■ Okay, so you thought it would be fun to own your very own movie
theater. You bought the aging movie palace in town and started the long
process of updating a building that everyone said was a goner. You open
the doors to great community support and all the naysayers have to eat
their words. You are a big fish in a small pond.
Then the unthinkable happens. Just when you get comfortable, you
find out that a big chain is going to open a multiplex only 15 miles from
your location—and worse, this new theater will have all the bells and
whistles you can only dream about. On top of that, the cinema has about
five major restaurants in the same strip center as well as a big-box supercenter
across the street. The naysayers all remind you that your decision to
open the palace was ill-advised.
Acme opens and your attendance plummets. What are you going to do
now? My first piece of advice is to be patient. A new business is going to jump
out and dominate the market for a period of time. But during this time, you
need to do your homework. Become an expert on your market. Who comes
to your theater—families, seniors, teens or maybe the upscale art crowd? Once
you know this, you can formulate a plan to attract them back to your theater.
During your homework period, you must also understand who your
competition is. You must personally attend the theater as a customer
would to get the real experience. What does that cinema do that you
cannot such as offer better parking or brand-new restrooms? This can be
a tough lesson. Many times, the new theater offers so many new advantages
that it can be depressing. Don’t fret. Armed with this information,
you can now reformulate your business plan to attack the weaknesses of
your competition.
One very big advantage independent theaters can have over chain
theaters is the owners. Having everything on the line is a big motivator.
Chain theaters are usually very well managed; however, in order to maintain
control, the corporate leaders must have a relatively strict work manual
for their managers to follow, and this often stifles creativity. On the other
hand, independent owners can make immediate changes in their operations
to better serve customers without the prohibitive red tape. Another
advantage for independent theaters is usually they have lower overhead,
which means they can offer a better ticket and concession value.
Showmanship is another effective tool for independent theaters. A great
showman can get away with many antics that would never get approved by
corporate—just look at the success and growth of Texas’ Alamo Drafthouse,
which started with one ambitious owner and his goofy and bold promotions
and is now becoming a chain of its own. Extra effort and razzle-dazzle can go
a long way toward helping theater owners—and their patrons—forget that
they can never have a big parking lot or big new restrooms.
Still, the best way to beat your competition is with good old-fashioned
service. Personally greet your customers by name at the door. Train your staff
to try to remember what a particular customer wants at the concession stand.
Treat each customer as if he or she is a guest in your home. Even though your
patrons may visit the flashy new Acme, if you’re smart in how you combat the
competition, you can lure your audience back to your doors.
Help her live.
Because her story
shouldn’t end
with cancer.
St. Jude patient Rylie, 7 years old, Sarcoma
©2012 ALSAC/St. Jude Children’s Research Hospital
Each holiday season, leaders in the theatre industry participate in the St. Jude
Thanks and Giving ® campaign to help give patients at St. Jude Children’s
Research Hospital ® the happily-ever-after they deserve. By visiting our
website and signing up, you can help save children like Rylie.
PLEASE PARTICIPATE l STJUDE.ORG/THEATRES
20 BOXOFFICE PRO NOVEMBER 2012