Concession

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price-hikes

popcorn graphic

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CORN-PRICING AND THE FUTURE?

While the cost of theatre concessions has indeed increased, we have seen only a broad rationale, with outline examples, as to why; although where, specifically, to lay the blame for increases at the concession stand, where they occur, remains actually less clear-cut. Meanwhile, according to Supplier A, exhibitors’ orders have begun to plateau – and in fact,

are presently slightly down, the trend apparently pegged to faltering theatre admissions. “Probably,” he confides, “there could come a point at which more and more customers choose fewer, or indeed perhaps not to purchase, concessions with their film, and the economy will likely become the determinant. With littIe change expected for corn-pricing, if that of crude [oil] increases further, it is likely to drag other commodity prices up with it; a big fear, on the other hand, however, being also that if the price of crude tumbles in response to world economic conditions, then that could well precipitate another recession.” According to Supplier B, however, “Right now, we’re actually witnessing a period of correction, where corn-pricing has recently decreased – perhaps due to the deteriorating world economy, or perhaps too because, now, so many factors affect our ever-globalizing markets – and, as such, we can probably expect the up-and-down nature of corn-pricing to continue to see-saw according to supply-and-demand.

"What's My Mark Up?"

Comparing the above with supermarket prices (91p/100g) and figuring in the various bulk discounts for popcorn and paper containers, showed that, at their most extravagant, profits could theoretically top 1,200% – but that even this estimate could be lenient given the majors’ even greater bulk-purchasing power.

Further calculations showed that if a street-trader, taking advantage of the bulk discounts and profitability afforded the major chains, sold 100 portions a day, he would clear £2,500 a week! However, the cinemas counter that [popcorn] prices remain very much in line with those of other out-of-home entertainments.

BACK IN SEPTEMBER, the BBC’s Watchdog investigated the, often exorbitant, mark-ups achieved for UK cinema popcorn sales which had just recently increased further. The argument for raised profits remains a well-worn one, given the admission-price percentage conceded upon film-hire, also the fact that not all concessions items will be equally profitable; and that heating, lighting, staff wages etc, must also be covered.

At Vue, a small tub of popcorn sold for £4.70, which worked out at £3.15 per 100g; while, at Odeon, a small £3.95 carton sold for the equivalent of £5.27-per-100g serving. Meanwhile, at Cineworld, a £4 small tub weighed in at £6.45 per 100g.

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