The price of corn has skyrocketed on the futures markets and farmers are increasing their acreage of corn to an all time record. Why, because of the promise of ethanol as a replacement for gasoline. To make matters worse, this summer, gas is expected to rise to the $3/gallon price as crude oil hits the $70/barrel mark.
So cinema exhibitors get hit with a double whammy. Higher popcorn prices and higher gas prices, both of which impact theatres negitively. What's the answer, if any.
Watch your popcorn suppliers pricing, and if possible purchase corn now for stock through the summer or better still contract with the supplier for set pricing now with delivery later.
Look closely at your popcorn pricing. If possible nudge up your pricing or recast your pricing to force more moviegoers to purchase middle or large sized popcorn portions. Make these sizes the value buy, force customers to the middle price popcorn size.
Think up promotions: Gas discounts on concession purchases. For example $1 off on all concession purchases over $10. Offering Pic n' Play concession giveaways. Colaborating with local gas stations for fillups and a movie. Be creative.
The price increases for gas and corn will impact every movie exhibitors bottom line. So take action now. The roster of summer films looks very good but you need to be proactive and begin to impliment tactics to offset the gas/corn issue.
Good luck!
Jim Lavorato
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