CONCESSIONS
Moviegoers frequently lament the high prices for concessions. Concessions average nearly 30 percent of revenues. Direct costs of just 15 percent make concessions the largest and sometimes sole source of exhibitor profit. These profits are influenced by three factors: attendance, pricing, and material costs. The most important is attendance: more attendees equals more concession sales. Per patron sales are influenced by prices. The $4.50 and $8.00 price points for the large soda and popcorn are not accidental, but the result of market research and profit
maximization calculation. Costs are influenced by purchase volume, with larger chains able to negotiate better prices on everything from popcorn and soda pop to cups and napkins.