Table of Contents



Feasibility Study:A Movie TheaterWithFood and Drinks Table of ContentsIntroduction………………………………………………………………. 3Summary…………………………………………………………... 3Research question ………………………………………………... 3Questionnaire ………………………...…………………………… 4Demographic information …………………...…………..……….. 4Results……………………………………………………………………. 4Conclusion………………………………………………………………... 7Recommendations………………………………………………………... 7Limitations………………………………………………………………... 8Appendix A – Questionnaire…………..…………………………………. 9Appendix B – Research proposal……...………………………………….14Appendix C – Frequency tables………………………………………….15IntroductionImagine a traditional movie theater where rows of seats alternate with bench-style tables. Once seated, customers order from a menu that offers hamburgers, fresh salads and pizza, as well as beer and wine. A friendly wait-staff takes customer orders and brings the food to their seats. Customers can continue to order during the movie by writing their request on a paper and attaching it to clips on their table. The waiters quietly collect and deliver these orders without distracting from the movie.We believe that a movie theater that offers a comfortable, full service environment would be a fantastic alternative to the “typical movie theater” setting in Lordsburg. A unique combination of theater and restaurant, showing best first-run and independent films, offering an extensive menu of fresh, handmade dishes and a wide selection of beer and wine, could be a success with the local movie goers.SummaryThe intention of this market research report is to inquire if opening a local movie theater that accommodates movie goers would be a success in the Lordsburg area. The research includes narrowing a target market for this type of theater and recognizing different attitudes and assumptions that are assigned to this particular setting.Our survey was based on a sample of students on the Lordsburg Institute of Technology (LIT) campus.Research QuestionKnown facts are that college students love alcohol, they love going to the movies, and the love to eat. We sought to examine student responses to a business that incorporated all of these features. In doing so, this research sought to understand student’s behavioral tendencies and why or why not Lordsburg would have a demand for a movie theater that served dinner and drinks.The main questions that we wanted to answer were:Would serving alcohol complement enjoyment or add risk to the movie going experience?Would having a small dinner served be something that movie viewers would enjoy or would it interfere with the theater atmosphere?Would movie viewers be content with paying a slightly higher price for tickets to attend a theater with additional amenities?Would the percentage of families with children who attend movies change because alcohol would be sold?The QuestionnaireThe questionnaire (Appendix A) offered 25 questions with 97 possible responses. The questionnaire was intended to determine the following:The behavioral pattern of students who attend moviesWhich students had families and if they attended movies with their familiesWhich students drank alcoholIf students who drank alcohol are interested in purchasing alcohol at movie theatersFull-meal food preferences when visiting a movie theaterWillingness to pay for added movie theater amenitiesDemographic InformationWe limited our sample to LIT students because this sample was convenient and it would give a good range of responses. It gave us an opportunity to interview both male and female students as well as students who did or did not have families.ResultsIs there demand for a movie theater in the Lordsburg area that serves alcohol and offers dinner to moviegoers?According to our results, 55% of our sample would enjoy having alcohol offered at a movie theater; 66% would attend a theater that serves only beer and wine. We were concerned that people who wanted alcohol would want a wide variety of alcohol, not just beer and wine, served at the theater. The problem: the cost of a full liquor license would be cost prohibitive. Fortunately, our results indicate beer and wine availability is sufficient.In terms of dinner being served at a theater, 51% of our sample would not enjoy this option. Some verbal responses and concerns were that serving dinner would cause a “mess” and interfere with the movie experience. Therefore, we may be inclined to offer traditional movie snacks rather than a full course meal.What target groups find this movie theater setting appealing?Given the drinking age, our primary target market would be people who are 21 year old and older. Because Lordsburg is a college town, we wanted to identify something that was appealing to college students and that would be in high demand. We also wanted to assess how many LIT students had families and attended movies with their families. This data gave us a good feel about whether or not they would be a sufficient target market.Why might it not be appealing?The main reason that customers might not find a movie theater that serves food and alcohol appealing is that they would still have to pay for the food and alcohol after already paying for movie tickets. In fact, 59% of respondents said that they would not want to pay for alcohol after already paying for tickets. This result is unsurprising. If customers were asked whether or not they still wanted to pay for soft drinks, the result probably would be similar. Or, they may believe that alcohol will be more expensive than soft drinks. Of respondents, 46% said they would not want to pay for dinner after already paying for tickets. These results were somewhat surprising, as dinner and a movie go hand-in-hand. Yet, many respondents may have believed that having dinner at the movie would detract from the old-fashioned movie experience.Types of Appetizers PreferredThere was high demand for different types of appetizers available at the movie theater. Out of 100 respondents, 78% answered that they would enjoy having appetizers available. The highest demand was for chips and salsa, followed by chips and queso. Buffalo wings, mozzarella sticks, and jalapeno poppers were close, all scoring between 15% and 18%. We conclude that offering these particular appetizers would prove profitable. People often go into a movie theater hungry and ready to buy snacks, and having these different appetizers available would attract additional moviegoers while increasing revenue.Types of Main Courses PreferredWe realized that there is not high demand for a dinner to be available at a movie theater. Only 49% of respondents were interested in having a small dinner available. A few respondents indicated that this type of service may cause a “mess,” and others stated they may not be able to hear the movie because of eating-related noise. Of the people who preferred that dinner be offered, there were certain items they wanted more than others. Hot dogs and pizza both scored 17%, and hamburgers were right behind at 16%. All other options offered followed closely, with spaghetti scoring the least at 7%. There were also some respondents who preferred not to have any type of dinner available at the theater.Types of Desserts PreferredThere is high demand for different types of desserts to be offered in the theater. Among respondents, 72% stated that they would enjoy having dessert available. Many people go to the movies after dinner and would enjoy eating something sweet. The dessert that people would like to see offered most is brownies, at 32%. The second dessert that respondents chose was ice cream, scoring 29%. The other choices were not nearly as popular. Offering these two types of desserts should enhance theater revenue.ConclusionThere is a substantial market for a movie theater that serves alcohol and a variety of appetizer and dessert choices. Our initial target group is limited to college students, and half of the LIT students are not old enough to drink, so we are unsure how much their answers influenced our findings. Perhaps a broader sample of Lordsburg residents would produce difference results..Alcohol being served in movie theaters is definitely not appealing to everyone, as is shown by our results. Only a bit more than half (55%) of our respondents stated they would enjoy alcohol at the movie theater. However, it is clear that we should focus on appetizers and desserts rather than full-dinner services.RecommendationsLordsburg is a booming city with construction everywhere. Our theater would be on the cutting edge in Lordsburg, as it would be the only one of its kind. We have based our idea on the famous Olive Movie House in Texas, which seems to be a profitable venture.Over half of respondents indicated that they would enjoy drinking alcohol at the movie and a large majority said they would enjoy being able to buy some type of appetizer, dinner, and/or dessert. We believe that our theater will be able to meet most movie-going experiences.All the current movie theaters in Lordsburg seem to be doing well and we believe our theater would thrive also. We would target college students as well as other community residents. College students comprise a huge percentage of the Lordsburg population, and thus represent a viable and potentially lucrative market.LimitationsThere is definite room for error when conducting a convenience sample survey. We had limited access to the Lordsburg community. Our sample consisted of responses from LIT students, rather than various patrons from Lordsburg. In other words, our survey did not adequately reach potential non-student patrons. For example, many LIT students are underage and cannot drink alcohol. (Our survey did not ask for the respondent’s age.) Also, we might have had respondents that did not answer the questionnaire truthfully. LIT students generally are rushed while on campus and a minute of their time to answer a survey can prove burdensome. Hence, our results should be considered cautiously.Upon analyzing the data, we noticed several changes that could have been made. The first change would be to have added a gender or age category, making it easier to identify a target group. Also, many of the questions on the questionnaire helped determine if the sample would enjoy having alcohol and dinner available to them at a movie theater; however, there should have been a question about whether or not they would go to a theater. In addition, the questions about ‘at home’ movie habits seemed insufficient to address our research problem.Appendix A – QuestionnaireThe following questionnaire has been designed to determine if a local movie theater that serves alcohol and dinner would be a profitable success. Rest assured that your answers to the following questions are completely confidential.Your cooperation on filling out this questionnaire is important to the success of this business venture. Thank you for your time! INSTRUCTIONS:UNLESS OTHERWISE INDICATED, PLEASE PLACE AN ‘X’ IN THE SPACE NEXT TO YOUR ANSWER.)How many times a month do you go to the movie theater?___1-2 ___3-4 ___5-6 ___7 or more___Other (Please Specify) _______________________Do you watch movies at home?___Yes ___NoIF YES CONTINUE TO QUESTION 3, IF NO SKIP TO QUESTION 5How many times a month?___1-2 ___3-4 ___5-6 ___7 or more___Other (Please Specify) _______________________What is the typical time you attend a movie? (Check all that apply)___Matinee (12pm-4pm)___Evening (5pm-8pm)___Night (9pm-10pm) ___Other (Please Specify) _______________________Do you have children?___Yes___NoIF YES CONTINUE TO QUESTION 6, IF NO SKIP TO QUESTION 9Do you attend movies with your family?___Yes___NoIF YES CONTINUE TO QUESTION 7, IF NO SKIP TO QUESTION 8How many times a month?___1-2 ___3-4 ___5-6 ___7 or more___Other (Please Specify) _______________________Would you go to a theater that serves alcohol, with your children?___Yes___NoDo you purchase drinks at the theater?___Yes___NoDo you drink beer?___Yes___NoDo you drink wine?___Yes___NoWhile watching movies at home, do you like to drink beer?___Yes___NoWhile watching movies at home, do you like to drink wine?___Yes___NoWould you enjoy having alcohol available at the movie theater?___Yes___NoWould you go to a theater knowing the only alcohol offered would be beer and wine?___Yes___NoAfter paying for tickets, would you still want to pay for alcohol?___Yes___NoDo you purchase snacks at the theater?___Yes___NoWhile watching movies at home, do you like to eat snacks?___Yes___NoWould you enjoy having appetizers, dinner and/or ice cream available to you at the movie theater? (Check ‘Yes’ or ‘No’ for each category)YesNoAppetizers______Dinner______Dessert______What types of appetizers, if any, would you enjoy having available to you? (Check ‘Yes’ or ‘No’ for each type of appetizer)YesNoChips & Salsa______Buffalo wings______Chips & Queso______Mozzarella Sticks______Jalapeno Poppers______None______Other(Please Specify)______________________________________What types of main course, if any, would you enjoy having available to you? (Check ‘Yes’ or ‘No’ for each type of main course)YesNoHamburgers______Taquitos______Pizza______Spaghetti______Chicken Strips______Salads______Hot Dogs______None______Other(Please Specify)_______________________________________What types of desserts, if any, would you enjoy having available to you? (Check ‘Yes’ or ‘No’ for each type of dessert)YesNoChocolate Cake______Ice Cream______Brownies______None______Other(Please Specify)_______________________________________ If dinner was offered, would you prefer pre-ordering at the counter or having your order taken while seated?___Pre-order___Taken while seatedWould you still like to have typical movie snacks and drinks available to you? (I.e. popcorn, soda, nachos, etc.)___Yes___NoAfter paying for tickets, would you still want to pay for dinner?___Yes___NoTHANK YOU FOR PARTICIPATING IN OUR SURVEYYOUR FEEDBACK IS GREATLY APPRECIATED!!Appendix B – Research ProposalTo determine the feasibility of a local movie theater with features that differs from the typical theater.Questions:?Would serving alcohol complement enjoyment or add risk to the movie viewing experience in theaters??Would having a small dinner served be something that movie viewers would enjoy or would it interfere with the theater atmosphere and movie experience??Would movie viewers be content with paying a slightly higher price for tickets to attend a theater with additional amenities??Would the percentage of families with children who attend movies change if alcohol was sold??Would added security be needed in this type of setting?Sample:We will survey college students at Lordsburg Institute of Technology.Appendix C – Frequency Tables ................
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