Cineplex considers mobile concession pre-orders
TORONTO — Cineplex Inc. moviegoers could soon order their popcorn from their mobile phones before heading to theatres, as the company focuses on concession stand sales, restaurants and bars to continue to drive growth.
“We are testing it and we are looking at it, especially in the VIP cinemas, where you can basically walk in and have everything ready to go,” president and CEO Ellis Jacob said Thursday.
He talked about the potential of such an option after Cineplex reported a fourth-quarter profit of $28.8 million, up from $23.3 million a year earlier, which was boosted by concession stand sales.
In the last quarter, Cineplex’s concession revenue per patron grew 9.4 per cent to a record $6.29 compared with $5.75 a year earlier.
Moviegoers opting for premium VIP tickets — which offer in-seat ordering and roomier, reclining chairs — are opting to spend more, Jacob said.
Customers are also heading to the theatre early to stock up on snacks and take advantage of the company’s in-seat, pre-screening game Time Play, which pits moviegoers against each other in an interactive, trivia game where they can win prizes, he said.
Concession stand offerings have become so expansive that “you can pretty much have your dinner there,” Jacob said.
But “we keep pushing harder and looking at different choices for things we can sell at the concession stand,” he added.
In 2017, the company increased the size of some of its portions and began selling alcohol in Ontario and Alberta.
“But at the end of the day, the concession revenue at the theatre is driven by the number of people who come through,” Jacob said.
The debut of “Star Wars: The Last Jedi,” as well as “Thor: Ragnarok,” “Justice League,” “Blade Runner 2049” and “Jumanji: Welcome to the Jungle,” helped bring people to the theatres in the
last quarter.
During that period, box office revenue per patron increased to $10.54 compared with $10.23 a year prior. Attendance during the quarter slipped 2.1 per cent, to 17.6 million people, compared with 17.9 million in the fourth quarter of 2016.
Looking ahead, Jacob said he was feeling “encouraged by the film schedule this year, especially in the second and third quarters,” when “Avengers: Infinity War,” “Deadpool 2,” “Solo: A Star Wars Story,” “The Incredibles 2” and “Jurassic World: Fallen Kingdom” will debut.
Away from the screen, Jacob indicated that Cineplex will keep concentrating on some of its other entertainment offerings, including the Rec Rooms, restaurants and bars outfitted with arcades and other interactive games.
He said 10 to 15 more Rec Room locations will open over the next few years, and the concept will pop up in two new Ontario locations — London and Mississauga — in the next 12 months.