INTERNATIONAL

SNACK CORNER
LARRY ETTER
FJI CONCESSIONS EDITOR
THE RETAIL EFFECT
Keepsake Items Enhance
the Concession Offering
The latest trend in foodservice
operations is to
include a vessel of some
type that ties the movie patron
to the fi lm franchise. Retail items
such as popcorn tins and fl ashy
collectible cups have fl ooded the
concession stands, all with the goal
of increasing sales incidence. This
trend is changing the way we as
operators present our goods and
services, while building loyalty to
the cinema business.
The Retail Effect, as I call it,
is that move from selling a single
bag of popcorn to selling a highend,
multicolored, highresolution
popcorn tub
made from a reliable
metal as the primary
source of revenue.
The graphics on
plastic soda cups
are eye-catching and
notable features that
create a spontaneous
purchase. The
sipping device known
as a straw has become a
premium collectible warranting
a price of dollars for an item that
was once free of charge. And the
kids’ combo has now become a
means to sell toys as opposed to
a snack box with a popcorn, soda
and small candy.
Patrons enter the theatre with
certain expectations of the experience.
The theatre operator has a
responsibility to exceed those expectations,
and in foodservice we
are adding retail items to achieve
that goal. Customary concession
items have often been literal with
a concrete purpose: Hold the
drink or popcorn until it can be
consumed. These items have been
functional, utilitarian and overt.
Now, the practice is to design
a delightful, engaging, pleasurable
INSIDE
OUT
TOPPERS
experience, with the vessels as
a means to connect the patron
to the fi lm product itself. 2015,
a big year for franchise fi lms,
saw an explosion of new vessels
that became a real revenue
driver. Even though collectible
cups have been sold in years
past, Avengers: Age of Ultron saw
the addition of popcorn tins
used as means to entice more
sales of popcorn. Jurrasic World
brought us collectible cups,
dinosaur toppers, and even
candy. Minions caricatures of the
loveable lead characters became
more important than the actual
snack itself. The Hunger Games—
Mockingjay, Part 2, with its
popcorn tins in multiple graphic
styles, induced the patron to buy
two instead of one, and key rings
and water bottles accentuated
the entire “retail” promotion
for concessions. And then Star
Wars: The Force Awakens blew
up the world with collectibles:
Four various styles of popcorn
metal tins, plastic 200-ounce
buckets, collectible cups, toppers
and other sundry items led to
huge increases in sales on the
concession revenue scale.
The truth is we may not be
selling snacks as much as we are
selling vessels and premiums that
just happen to come with
popcorn or soda
inside. This action
creates concession
bliss. The
movie patron now
believes they are
a part of the fi lm
itself. They are
“buying into” the
experience, not
only for the time
at the theatre
but for savoring
it later at home.
The average
customer senses
that they “own stock” in the fi lm
brand. Patrons now have the fi lm
images in their hands, characters
in their possession, and mementos
of that theatre experience that are
concrete, no longer just imaginary.
By selling/offering these higherprofi
le vessels, we are improving
the value proposition extended to
the guest. Our offerings no longer
seem manufactured but unique,
not so much mass-produced as
individually portioned.
These keepsake items are
growing sales at the concession
stand exponentially. Example:
If a theatre circuit sold 100,000
kids’ combos in the past, and now
adds the topper at $2 per unit,
sales would grow by $200,000.
If the same circuit sold 100,000
souvenir cups (44-oz. beverages)
and decided to add a $1 upcharge
for the vessel, another $100,000
in new sales would result. And
if a theatre circuit sold 25,000
popcorn tins at a charge of $5
per unit, that would add another
$125,000 in revenue. This modest
example posits a viable growth of
$425,000 in annual sales. (Please
note: The sample described above
can be adjusted up or down
depending on a circuit’s pricing
philosophy and only represents an
example of what could occur.)
The essence of this message is
that retail items are improving the
image of the snacks offered at the
food outlets. But it is important to
understand that the profitability
model also changes. Retail packaging
costs more, quite a bit more. However,
the actual dollar profit results
in more dollars actually deposited
in the bank. Food and beverage
managers should not be averse to
selling these premium items because
the percentage profit does not meet
the standards of soda and popcorn
percentages. The increase in sales
dollars leads to higher revenues per
patron, which offsets the cost of
labor and overhead expenses as percentages.
The overall intent should
always be: Put as much cash in the
bank as possible–we deposit dollars,
not percentages.
This trend of retail augmentation
can help theatre owners subtly
and still increase the pleasure
of the theatre experience if presented
in a professional manner. It
is a means to increase customer
loyalty as well as increase dollar
revenues. Seems like a win-win for
all concerned.
58 WWW.FILMJOURNAL.COM
FEBRUARY 2016