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The Flip Side of a Trend
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How Theyre Drawing the Lines Back to Old Theaters W hat do you do with an old, single-screen movie theater that has lost its market to all the multiplex, megaplex and gigaplex extravaganzas that are popping up everywhere? Unlike most large retail or entertainment spaces, a traditional movie theater is worse than a white elephant it is a gigantic, dead white elephant, because it doesnt have a level floor.Jackhammering out tons of concrete may be more than expensive, it may be structurally impossible. Building a level floor over the old slope may work, but youre still left with a big space and the question remains, what to do with it? Before you call in the jackhammers, or the carpenters, consider what is happening across the country with older, conventional theaters. One of the most powerful trends in movies seems to be the flip side of the theme restaurant phenomenon: If you can draw restaurant patrons with entertainment, why not draw movie patrons with food? The Terrace Theatre in the Crossroads Mall in Roanoake, Virginia, like many other old-line movie houses, closed about a year ago. But this white elephant didnt have to be buried; it is being resurrected with its silver screen intact, but with one distinct difference tables and chairs, with food service and, government willing, beer and wine. The Terrace Theatre, will reopen soon as the Star City Cinema Grill, split into two screens, containing three level tiers with tables and chairs, as well as counter eating areas. Customers can order pizza, sandwiches and similar fare, along with beer and wine if the Alcoholic Beverage Control Board approves. The trend in movies across the United States, in response to the megaplex monster, is one of two things: creativity or carnage. Though little known, this is not a new concept. Cinema Grill Inc. (770-395-0724) of Atlanta, Georgia, opened its first such unit, the Cinema Draft House, in Orlando, Florida, during 1975. The name was changed to Cinema Grill four years ago to widen its appeal. It now has 20 theaters in 12 states and plans for 14 more. Most are franchises, including Star City. Current locations include Ft. Wayne, Indiana; Denver; Fargo, North Dakota; Minneapolis; Cincinnati (two); Atlanta; Charleston, South Carolina; Raleigh; Harrisburg, Pennsylvania; Savannah, Georgia; Charlotte; Salt Lake City; Roanoke, (soon to be two); Altamonte Springs, Florida; Milwaukee; Lexington; Dallas; and Chattanooga. Star City is one of three locations involved in a joint venture between Cinema Grill and General Cinema Theatres (617-264-8000). General Cinema also has seen resounding success with an upscale version of this concept. In April, 1998, at the Yorktown 18 theatre in Lombard, Illinois, General Cinema opened the countrys first Premium Cinema. For $15, customers get valet parking, free popcorn, wait service for food, wine, champagne, espresso and cappucino, and oh, yes, the movie. It serves only adults over 21. Typical movie theaters average 25 to 30 percent occupancy during the course of a week. Premium Cinema is running about 70 percent, the company said. If it works, which it seems to be doing, the concept will expand to 20 locations nationwide. February marked the opening of three more Premium Cinemas in Baltimore, Maryland. Cinema Grill theaters show "intermediate run" movies, successful films that have had their day at the first-run theaters. The Steeles signed a 15-year lease on the theater and got a $350,000 small business loan to get the venture started. Cinema Grill charges a $20,000 franchise fee. Typical ticket prices for Cinema Grills are $2.00 daytime and $3.50 evenings, with no requirement that customers buy food or drink, although the average customer spends $10 anyway. Of course, if its a good idea for older, single-screen houses, its just as good an idea for new, multi-screen venues. General Cinema apparently likes the dinner/theater mix so well it announced in January that it will build Washington, D.C.s "most luxurious" theater in the northwest sector at the Mazza Gallerie on Wisconsin Avenue. The seven-screen bijou-bistro will feature an elegant cafe/restaurant operating in conjunction with the adjacent Neiman Marcus store, incorporating the Neiman Marcus standard of sophisiticated glitz. General Cinema is partnering with CCR McCaffery Developments (312-944-3777) in the venture. Opening is set for this fall. Amenities include stadium seating, state-of-the-art sound and picture technologies, plush, high-backed rocker seats, and valet parking. The restaurant, which will be separate from the auditoriums, will offer appetizers, meals, coffee, desserts and drinks. Two auditoriums in a separate "club section" will be open only to adults with all leather seats in a cabaret setting, offering appetizers and drinks. The 43,225-square-foot theataurant will have 1,600 seats and show first-run films. General Cinemans guinea pig for the Mazza Gallerie project was the Pacific Place Cinema in downtown Seattle, Washington, an 11-screen venue that opened in November, 1998, and rapidly became the highest-grossing theater in the entire Pacific Northwest, according to the company. The trend in movies across the United States, in response to the megaplex monster, is one of two things: creativity or carnage. A sampling of news releases over just a weeks time gives a glimpse of the wreckage: In Kennewick, Washington, a chain of nine theaters closed abruptly, leaving customers in three communities with no movie theaters at all. The theaters, operated by Plitt Amusements, an arm of Plitt Theatres Management Corp. of Torrance, California, had been scheduled for a $1.5 million renovation program announced several months ago. Speculation that bankruptcy petitions had been filed could not be confirmed. In Wichita, Kansas, a three-screen discount theater at the Wichita Mall closed January 15, unable to compete even at $1.75 a seat. Landlord Simon Property Group indicated the theater space would probably be converted to offices. In Fort Wayne, Indiana, the Southtown Cinema in Southtown Mall has shown its last flick. Bluegrass Theatres of Lexington, Kentucky, took over the theater in 1993 after General Cinema abandoned it. Now the three-screen house has drawn its curtains again. If General Cinema and Cinema Grill are on the right track, closings like these represent opportunities for the right operators, with the right ideas, providing they come along before the jackhammers and carpenters get there. |