Boxoffice-September.1997

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1 "J Hi\vf\tnnrv Cover MODERN MAJOR General Cinema Celebrates 75 Years By Looking to the Future by Pat Kramer Covet photo by Richard O'Rourke
Spntpmhpr 10Q7 I"? BoxoFFiCE asked some of the employees of General When Cinema Theatres (GCT) what has most contributed to the company's success in 75 years of service, the answer we kept receiving was "good customer service—General Cinema listens to its customers." (See related story, page 16). Known as a family-oriented exhibition circuit throughout its three-quarters of a century in business. General Cinema's mission statement remains. "Service first, entertainment always." Says Paul Del Rossi, president and CEO of GCT (the seventh largest circuit in the country, according to <strong>Boxoffice</strong>'s last Giants of Exhibition poll). "We think of ourselves as an entertainment company, not just an exhibition circuit. What we strive for in our business strategy is servicing the customer. People can go anywhere to a movie theatre. We want them to come to our theatre. How do we distinguish it? By the quahty of our service." A family-owned business now in its third generation. General Cinema Theatres was founded in the Greater Boston area in 1922 by the late Philip Smith. Known as a businessman with a keen farsightedness. Smith opened one ofthe first successfiil "auto theatres" in the U.S. in 1935, paving the way for the growth of the chain, then known as Midwest Drive-ins. By the "50s, Philip and his son. Richard, continued GCT's tradition of trend-setting, seizing upon what they saw as the next major trend in consumer habits: the shopping mall. Built in 1 95 1 . GCT's single-screen Framingham Cinema at Shoppers World in Framingham. Mass., is believeid to have been the first suburban theatre located in the same complex as a shopping center. The convenience of dining and shopping around the moviegoing experience proved so popular that, by 1%6, GCT was the largest shopping center theatre operator in the country, according to Del Rossi. With their exhibition chain thriving, the Smith family began diversifying their business interests in the late 50s, opening drive-in restaurants, coffee shops and bowling alleys. In 1960, the company went public, and changed its name to General Drive-ins. Then, as further acquisitions were made, the company became known as General Cinema Corporation (GCC). Through the '60s, '70s and '80s. GCC invested in radio and TV stations and retail fumimre showrooms, and helped finance several films. But the business which brought the greatest returns was American Beverage Corporation, which they purchased in "68, leading to the formation of GCC Beverages. By 1989, when they sold the company, they had grown from five production facilities in three states to 20 in 29 states, making them the largest independent soft drink bolder in the nation and Pepsi's largest franchisee. GCC's other core businesses include the Neiman Marcus Group (which includes Neiman Marcus. Bergdorf Goodman and Contempo Casuals specialty retail stores) ;uid the publishing company Harcourt Brace Jovanovich. With their acquisition of the publishing company in '91 , the company name changed again from General Cinema Corporation to Harcourt General. General Cinema Theatres was then spun off from the main company, Harcourt General, and now operates as a division of General Cinema Companies, Inc. (The familiar GCC logo refers to General Cinemas Companies, though the theatre arm refers to itself as GCT). Still a family-run business, Richard Smith is chairman and CEO of GCC, while his son, Rob, serves as president and COO of GCC. Over at General Cinema Theatres, the "Johnny Come Lately" (as he refers to himselO in the Smith family business is president and CEO Paul Del "People can go anywhere to a movie theatre. We want them to come to our theatre. How do we distinguish it? By the quality of our service." —Paul Del Rossi Rossi. Del Rossi joined the company 17 years ago, after working in the vennjre capital business with The Boston Company and at national management consulting firm Arthur D. Little. By contributing expertise from outside the exhibition industry, Del Rossi says he's been able to bring different ideas to the business. But he notes that film has always been a passion: Since the time he saw his first animated Disney fUm, he's always had a love for the movies. As the driving force behind the continued success and growth of the Chestnut Hill, Mass.-based exhibition circuit (currendy with 1,250 screens in 1 86 locations in 24 states), Del Rossi has continued to uphold General Cinema's "Service first, entertainment always" goal. Citing the Smith family's historical precedent in presenting new innovations to the market, Del Rossi says, "We've always been a leader in sight and sound developments. We were the first theatre circuit to install THX sound systems in 1985 . And there's always been a focus on providing exemplary customer service." With the current massive increase in movie theatres in the U.S., Del Rossi beheves innovation is key to remaining competitive in a market whose screen count has tripled over the past two decades. "The way you combat this is in [providing] service and innovation: audiovisual innovation, theatre design innovation, and where you locate your theatres—in or near entertainment retail." GCT's five-yearplan for their rapidly-growing circuit includes 350 to 400 new screens, all equipped with digital sound and stadium seating. GCT is also looking at international expansion in Europe and Latin America. The circuit's biggest new news is a recendyinked partnership agreement with Robert Redford's Sundance Group, under which they'll be building a new chain called Sundance Cinemas. Located in city and suburban areas as well as in college towns, the cinemas will be art-house theatres with six to 10 screens, the first of which Del Rossi hopes to have up and running within a year. O: ne of GCT's newest multiplexes, the Northbrook Court 14, located in a suburb of Chicago, 111., exemplifies how far exhibition can go. The Northbrook Court 14 is situated in an upscale shopping mall, offering an expanded entertainment experience. Says Frank Mack, general manager of the theatre, "Northbrook has all the latest, state-of-the-art items that f)eople want in a theatre." This includes two self-serve concession stands selling branded items like Starbucks coffees and Pizzeria Uno. The theatres, with stadium seating for a total of 3,25 1 patrons, are located on two levels, with a cafe on the mid-level. Two of the auditoriums are THX-certified, and all 14 theatres are equipped to provide all three digital-sound capabilities. Ten mobile digital systems are available; five Dolby Digital, three DTS, and two SDDS. By having them on movable carts. Mack says they can provide whatever sound system is needed for a particular feature. Since its grand opening last November, the Northbrook Court 14 has been very successful. Says Mack. "The town of Northbrook is, I think, very pleased with the design of the theatre. It's very glitzy in its look and the way it's laid out. It lends a lot of mystique to Northbrook. Many people are in awe over the look of the theatre and concept." The design, however, is but a small part of the overall appeal. In keeping with the GCT philosophy of service and family-oriented programming, Northbrook launched their highly-successful "Summer Movie Camp" program in June. The eight-week series featured weekly matinees at 10:00 a.m. and noon, with games, prizes, singalongs and
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Boxoffice-September.1997

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