First of all, 85% of movie theater’s money comes from the concession stands. The movie theaters don't make a lot of money from the ticket sales, most of that money goes to the movie company, and little is left behind for that theater. The snacks at theaters are outrageously expensive for very good reasons such as money to keep the theater running out of debt. For instance, researchers say that with no money from the concession stands, theaters can go into debt as far as $600 million! Therefor, goodbye movie theaters. …show more content…
Secondly, no concessions, no money.
As stated before, theaters can go into debt as far as $600 million. The markup for drinks, snacks, and popcorn went up tremendously since the theaters ticket sales do not produce enough profit. But, not all of the money goes to the theater, they need to pay the employees. Research shows that the salaries of the General/ Operations manager is about $46,088, ect. Adding up all of the salaries of each job, I found out that in total $345,880 is how much money the theater has to pay each week or month to their workers. The concessions help pay for most of the pay. Without the concession stands, the theater goes into debt, possibly close and the workers would lose their
jobs.
Finally, the more people sneak in food, the less money the theater has to keep running. Many people may say that the snack prices are outrageous and can get snacks for a cheaper price, but it could be considered stealing from the theater. The prices might be high and not very healthy, but you are out for a good time and junk food goes with it. There are theaters that offer hot dogs, pizza, and some are now serving healthy food, so your choices are now greater. It is the same as going to a ball game. The prices there are outrageous, but people pay it and don’t complain. So don’t try it in the theater.
So in conclusion, the theaters rely heavily on the money brought in by the concession stands. These funds are what keep it operational, and pay the salaries of the employees. If people sneak in food, the revenue goes down. Solely relying on money from the ticket sales will not be enough. They would have to raise the prices, and then this will keep people from going. If not that, the prices of the concessions will have to be raised to cover the expenses. Theaters will be forced to either close or shorten their hours of operation, and forget about the matinee. Everyone will be forced to pay higher prices, and go at later times.