At one time, drive-in movie theaters were the rage. Now, it’s dine-in theaters that are cooking up attention as the motion picture exhibition business is just starting to recover from the devastating hit it took from the Covid-19 pandemic.
According to the Motion Picture Association, box office grosses in the U.S. and Canada for 2018 topped $11.8 billion with 1.3 billion tickets sold. In 2019, the sale of 1.24 billion tickets brought in box office receipts of $11.4 billion.
In 2020, however, the bottom fell out with the pandemic, with just 240 million admissions resulting in a total box office gross of $2.2 billion.
It”™s too early for 2021 totals, but as of mid-October the North American box office gross was slightly over $3 billion.
While the extent of the recovery so far might raise caution flags for some, for theater operator Brian Schultz the recovery provides an opportunity to continue his company”™s program to open new technologically advanced theaters that offer upscale food and beverages.
Schultz is the CEO and founder of Dallas-based LOOK Dine-In Cinemas. On Dec. 9, the company will be opening its newest theater in Dobbs Ferry. The eight-screen theater will be the company”™s eighth location, with other sites already operating in Texas, Arizona, Florida and California.
Schultz says that when he was working as an aide to the late U.S. Sen. Arlen Specter of Pennsylvania he went to a movie at a theater in Bethesda, Maryland, that served food and beverages beyond the normal fare. It was there that he became smitten with the concept of being able to enjoy high-quality food and drinks in a professional theater while watching a movie. That experience set the stage for Schultz to launch the Movie Studio Grill chain of theaters in 1993.
Movie Studio Grill operated successfully until ”” once Covid was in full force ”” it had to file for Chapter 11. The company reorganized and eventually emerged from bankruptcy.
Schultz, in the meantime, launched LOOK Dine-In Cinemas.
“Making sure that you have a theatrical experience that has service and hospitality attached to it is really the future of where the entire industry is going,” Schultz told the Business Journal. “Like so many other industries, Covid and closures really caused a disruption that allowed us to fast-forward multiple years very quickly.”
Schultz said that the company has been able to individualize programming and attract audiences for events such as concerts, operas, documentaries and other categories outside of typical feature film showings.
The menu offers a wide range of beverages, including cocktails, wine and beer. Salads, wraps, sushi, St. Louis BBQ ribs, chips, dips, cheeses, pizza and of course popcorn are among the food items offered. Thad Kelly, the company”™s executive chef, is charged with crafting the menu and monitoring overall quality and service.
“As we look for locations across the country, typically we”™re looking for communities that need a great community gathering place,” Schultz said. “It”™s a place where whatever you want to put on the big screen we can customize to the community.”
Schultz said that in previous operations use of theaters by businesses represented about 10% of the total revenue stream.
“I think that”™s really going to increase to about 20%,” he declared. “In Dobbs Ferry in particular there really is a shortage of places you can get together that have the right technology package that can be delivered in a very efficient way.
“The rooms lay out perfectly for all kinds of meetings whether you’re transmitting or listening, ” Schultz continued, “and I think that combines with the idea of less requirement to be in the office. It allows teams to get together where they can have a good meal or snack and have a meeting or conference or continuing education.”
The Dobbs Ferry facility at 1 Hamilton St. in Rivertowns Square had been operated by iPic Theaters. It closed in November 2019 when that company restructured.
“The previous operator built an absolutely gorgeous facility,” Schultz said.
He added that he”™s neither in the motion picture exhibition business nor the restaurant business, but is instead at what he defines as the integration point of the two. He said that during the time the chain’s theaters were closed due to Covid, he and his team were able to reflect on their operations and refine ideas such as how to serve high-quality food without distracting from the movie-viewing experience.
There will be a 25% discount on food items and nonalcoholic beverages through the end of the year as well as discounts on tickets for certain showings in celebration of the opening.
Schultz expressed optimism that the movie studios will have a full slate of theatrical releases from this point forward, providing longer windows for exclusive showings in theaters before movies are released for internet streaming or pay-TV.
“It”™s really confirmed that to make a movie stand out and get all the ancillary revenues associated with the film, the theatrical release makes that name, makes that value stand out,” Schultz said.
He said that while moviegoing needs to become a habit again for many people, “It”™s a chance for us to create an experience that is really desirable.” He indicated that LOOK Dine-In has expansion plans and anticipates signing leases for additional locations in the coming months.
“Our purpose is to bring communities back together,” Schultz said.
