Volume IV No. 1

A publication of the National Association of Theatre Owners

Advertise in In Focus

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Drafthouse
Ascendant

Cinema-eateries
everywhere are
suddenly programming first-run movies, and several companies are planning empires catering to people who like to enjoy a meal, a libation and a brand-new movie from the same seat.

by Alma Freeman

It’s Christmas Day 2003, opening day throughout the land for the new Ben Affleck actioner “Paycheck.” As Joe Filmgoer takes in the feature-presentation sci-fi from his high-backed leather-upholstered armchair-on-wheels, a waitress – sure-footed and aproned – carefully places on the table before him the Bubba Gump Cheese Shrimp, the Bill & Ted’s Excellent Nachos, the Schwarzenburger and the Tequila Mockingbird Margarita he ordered during the coming attractions.

Joe is enjoying his non-traditional holiday feast inside the Hollywood Blvd. quad, a Greater Chicago “first-run cinema-eatery” (or FRCE) that’s been up and running since last March.

Thanks to what appears to be a dramatic shift in film distribution policies, at least a dozen FRCEs have sprung into being over the last 30 months, with many more on the way. Hollywood Blvd. owner Ted Bulthaup says he now plans to open one or two FRCEs yearly.

Yet prior to November 1995 there appears to have been only one alcohol-dispensing FRCE: the granddaddy of them all, Portsmouth, Va.’s venerable Commodore Theatre.

The Commodore Sets Sail
What Commodore owner Fred Schoenfeld created in July 1990 appears to have been unique: a first-run cinema that served meals and spirits inside its auditorium.

The basic idea, only with sub-run movies, had been around for decades, popularized since the 1970s by, among others, Atlanta-based Cinema Grill Systems (CGS). The Commodore’s biggest innovation was to combine the cinema-eatery concept with brand-new releases.

The Commodore may have benefited from being situated in an area with few first-run cinemas. “The reason they were able to [get first-run movies at the Commodore] was that it was a fairly unique situation,” explains Texas-based Brian Schultz, who spent years trying to start his own chain of FRCEs in Texas. “It’s a unique city, it’s a smaller town.”

Schoenfeld, who traces his exhibition career back to the 1950s and the old Levine Theatres chain, has never operated a sub-run cinema, and was not keen to start with his newly-acquired Commodore. When he decided to transform the historic 1945 single into an elegant cinema-eatery, he never considered offering anything other than first-run product.

“I didn’t want to be hampered by the problems of sub-run, with the [difficulty of] getting product, or have to compete with the first-run houses,” he says. “I’ve always been a first-run house, and I wanted to continue that tradition.”

Throughout the Commodore’s 13-year history as an FRCE, Schoenfeld found all the major distributors friendly to booking his venue except one, he says. That distributor, which years ago refused to let Schoenfeld play a much-anticipated blockbuster, no longer does business with the Commodore, and Schoenfeld says the Commodore continues to do just fine without it.

Despite the Portsmouth venue’s well-publicized success, it would be more than five years before a second FRCE would open in the United States.

Like Schoenfeld, New England exhibitor Milton Smith found the film distributors accommodating enough when, on Nov. 24, 1995, he launched his new Chunky’s Cinema Pub FRCE duplex in Windham, Maine.

Smith, who was just out of college in 1992 when he entered the cinema-eatery trade with a sub-run single in Plaistow, N.H., says the decision to open the Windham facility, America’s first alcohol-serving FRCE multiplex, three years later was a “no-brainer.” “When movies first come out is when people want to first come to see them,” says Smith. “It wasn’t even a question. I wouldn’t do second-run now.”

Business was so good, a second Chunky’s FRCE appeared 17 months later, in Pelham, N.H. There are now five FRCEs operating in New England under the Chunky’s banner, and Smith is currently negotiating the lease for a sixth.

Smith allows that where his cinemas are located – all, like the Commodore, are in areas with few first-run screens – had a lot to do with his ability to go first-run.

But not everyone trying to follow in the Commodore’s wake found the waters so accommodating.

Years of Struggle
Like Smith, Brian Schultz entered the exhibition business in 1992 with a sub-run cinema-eatery. When he took over Dallas’ Granada Theatre, a historic movie palace which five years earlier had been converted into a moviehouse-restaurant by a CGS franchise, he continued to operate the venue as a sub-run cinema-eatery, but longed to make the jump to first-run.

For four and a half years, he says, Granada booker Tim Patton tirelessly lobbied the regional offices of every major film distributor – but first-run never did come to Schultz’s Granada, and Schultz and Patton ultimately walked away from it in 1999 (the building survives today as a live-music venue).

Bulthaup, who operates the Schwarzenburger-serving Hollywood Blvd., says he endured similar frustration while operating Indianapolis’ Hollywood Bar & Filmworks. He says the studios would not rent first-run features to any area cinema with a liquor license, and he spent five years “convincing, convincing, convincing” before his Hollywood Blvd. cinema-eatery was able to get its initial first-run print last year.*

Much of the cinema-eatery industry’s fast-emerging shift toward first-run can probably be traced specifically to late 1998, when Schultz and Patton opened their second cinema-eatery, a former UA 5-plex just north of Dallas known today as the Studio Movie Grill Addison. Having endured Patton’s pleas for nearly half a decade, Buena Vista became the first distributor to issue the Addison venue a first-run print.

“It was probably more of a situation of, ‘Let’s give this guy a chance; it’s probably not going to work out anyway so he’ll stop calling us,’” explains Schultz.

That first-run print turned out to be the Adam Sandler blockbuster “The Waterboy.” When the distribution offices servicing Schultz’s market saw the Addison plex’s initial grosses, the multi’s first-run status quickly turned permanent.

The change of heart “was not so much an evolution in distribution’s thinking as it was a wearing-down process,” says Schultz. “We just kept asking for a chance to show them what we could do.”

Schultz says he believes Patton’s lobbying efforts are “absolutely” the reason for the sudden proliferation of FRCEs in Texas and other parts of the United States. His own company unveiled its second FRCE, a former UA 8-plex in the Dallas suburb of Plano, just 18 months after the first. Business has been so good Schultz now plans to add two FRCEs per year, with his third site expected to be up and running by summer.

Something About
The Lone Star State

Texas is now home to by far the most FRCEs; fully half of all those identified by In Focus reside there.

Their disproportionate presence in the Lone Star State may be attributable in part to Patton’s groundbreaking efforts on behalf of Studio Movie Grill. It may also have something to do with the Alamo theatre circuit, perhaps the most famous chain of cinema-eateries in the world.

The Original Alamo Drafthouse, located in downtown Austin, rarely programs mainstream first-run movies. Owners Tim and Karrie League, who purchased the aging single and converted it into a cinema eatery in 1997, offer an electic mix of quirky classics (“Return to Oz” and “The Goonies” among them), sub-run fare (“American Splendor” and “Final Destination 2” played there in December) and little-seen oddities (like the animated Japanese adventure “Ranma ½” and the TV-movie “Sarah T: Portrait of a Teenage Alcoholic”). The facility also plays host to the city’s world-famous South-by-Southwest film festival.

The Drafthouse has always been popular, notably among students who drift down from the sprawling University of Texas situated 12 blocks north of the cinema, but the Leagues’ customers encouraged the couple to keep the kitchen and wait-service while introducing more mainstream fare to their screen.

Three summers ago the Leagues launched in Northern Austin the Alamo Village quad, their pioneer FRCE. Last summer, two more FRCEs bearing the Alamo name opened in Texas. Alamo CEO Terrell Braly, who joined the Leagues four months after the Village’s opening, says the first-run programming was successful from day one.

It “felt like Ray Kroc meeting the McDonald Brothers,” Braly says of his first encounter with the Leagues. “I thought, ‘Grow or die.’ They didn’t have the goal to expand, but we discussed that they had something very magical and that you can’t stay the same forever.”

Soon thereafter, the trio put together an expansion plan developing a prototype for franchising. Braly believes franchising was the only way that they could be “first to market” in areas within Texas and surrounding states. They decided to carry first-run programming over to all subsequent venues, and in May saw the opening of their first franchise, the Alamo West Oaks 6-plex in Houston.

“Right now we are a fabulous concept, branded in Texas with some regional, national and international name recognition,” says Braly. “We want to really build the brand in Texas, so that the branding goes well beyond the borders – and the next stage is surrounding states.” The company has already announced plans to open Alamo FRCEs in Texas’ San Marcos and Dallas markets.

Will the Dallas territory, which already boasts six first-run cinema-eateries, emerge as an FRCE battleground? Studio Movie Grill’s Schultz says he was unaware of Alamo’s plans to establish a presence in Dallas, but admits no concern. “I’m not really worried about a limited market. I think the more people who do this concept of ‘food in the movie,’ the better it is for us.”

A huge part of Alamo’s success, says Braly, is attributable to the amount of national publicity the circuit has received – much of it traceable to another new and popular cinematic institution based in Austin, Harry Knowles’ Ain’t-It-Cool-News (AICN) movie gossip Website.

Founded the year before the Leagues opened the Alamo Drafthouse, AICN has grown into a kind of cyberspace “ground zero” for millions of self-described “film geeks” ravenous for details on upcoming movie projects. Knowles has referenced an Alamo venue in at least 350 different AICN posts over the last seven years. That works out to about one plug per week. “I usually go to the Alamo Village twice a week,” says Knowles. “It’s nine minutes from my house.”*

Partly because AICN is so widely read among filmmakers and others in the entertainment industry, the Alamo chain has acquired more than its share of Hollywood-based fans, many of whom make it a point to visit the facilities when they’re in Texas. Actress Jessica Biel, who fell hard for the Alamo concept while in Austin shooting “The Texas Chainsaw Massacre,” has said she’d like to bring an Alamo franchise to Los Angeles.
Los Angeles-based screenwriter-director Ed Solomon, whose credits include “Men in Black,” “Charlie’s Angels” and “Levity,” serves on Alamo’s board of advisors. He believes the Alamo’s influence is behind the explosive growth in Texas cinema-eateries generally. “I had heard about the Alamo from a number of friends of mine,” he relates. “I was impressed with the unique vision of the theatre – and the combination of love for movies and respect for the audience.”

Beverage Pitfalls
While nine Texas FRCEs have opened over the last six years, In Focus was unable to identify any in the world’s moviemaking capital, Los Angeles. Any, in fact, in all of California. And, Biel’s ardor notwithstanding, any specific plans to create one.

Before they became some of the biggest FRCE operators in Texas, Schultz and the Leagues wanted to build their first cinema-eateries in Southern California.

The Leagues actually owned and operated a non-eatery specialty cinema in Bakersfield, Calif., where both attended grad school, but they say they could not obtain the necessary licenses that would allow them to operate a cinema-eatery in California.

A native of Agoura Hills, Calif., who attended California State University Chico, Schultz says his first notion – inspired by a Cinema Grill facility he visited in Bethesda, Md. – was to bring the cinema-eatery to Greater Los Angeles. “Because that’s where I lived! That would be nirvana for me!” But he says he too found California unfriendly toward the cinema-eatery concept.

Carl DeWing, information officer for California’s Department of Alcoholic Beverage Control (DABC), points out that policies and laws regarding alcohol differ greatly from state to state.

He adds that though there is no blanket regulation prohibiting cinemas from obtaining liquor licenses in California, the DABC has made it a policy to not issue such licenses to cinemas.

The reason, says DeWing, is linked to how difficult it can be to police a darkened auditorium, especially one full of minors. “Alcohol can create situations that may not be readily noticeable by the licensee,” he offers. “Alcohol has a way of loosening inhibitions, and people with criminal intent, if they take alcohol into a theatre, and have something in mind, it could create problems for people who attend these movies.”

“Once you bring [liquor] into an auditorium, the auditorium is dark, and you don’t know [if any minors might be] consuming the liquor,” explains NATO of California/Nevada president Milt Moritz, who adds that selling beer at other entertainment venues, such as sports stadia, is not an issue because “the lights are at a level at where you can detect if minors are drinking.”

Although DeWing allows that a few cinemas in the state have been granted licenses in the past, he says it will always be the exception, not the rule, as heavy conditions are placed on cinemas serving alcohol (13 varying conditions to be exact). He also notes that stipulations can and do vary according to local zoning ordinances in each city.*

For the record, alcohol licensing does not appear to be the only hurdle a California cinema-eatery would have to overcome. One veteran exhibitor who asked not to be identified suggested that labor laws in both California and New York make those states particularly unfriendly toward the cinema-eatery concept.

“In the Dark,
And All At Once”

The FRCE business is so new it’s almost like an industry of prototypes. No two companies seem to operate alike.

“When you are serving people a restaurant-type meal, they want to be taken care of in the dark just as well as if they were at a restaurant,” says Hollywood Blvd.’s Bulthaup. “They have a right to expect it, but we have to do it in the dark, and all at once.”

Bulthaup says that on a normal busy evening, his kitchen and staff are equipped to prepare around 1,000 custom-ordered meals in an hour, along with cocktail, beer and wine orders that are prepared at the bar.

“Anybody else serving this much food and this much beverage in such a short period of time is called a banquet hall,” he points out.

Hollywood Blvd. moviegoers sit in rolling executive leather desk chairs, either behind counter-tables parallel to the screen or at individual tables of four. Once seated in the auditoria, guests give their food and drink orders to roving servers. Although the facility is set up to provide continuous service throughout the film, Bulthaup, like most cinema-eatery owners, encourages moviegoers to arrive around 30 to 40 minutes prior to the start of the show. Patrons under 18 are not allowed inside the facility during any show, with the exception of select weekend matinee screenings.

Phoning It In
Brian Edge, who in June 2002 opened his first-run Carolina Theatre/Grill in Downtown Elizabeth City, N.C. (population 14,000), decided after a trip to Virginia to model his operation after the elegant style of the Commodore.

Doors at the Carolina open an hour prior to the start of the movie. After moviegoers let the box office attendant know if they will be dining or not, an usher takes them to their seats. Non-eaters are led to conventional cinema seating close to the screen; those choosing to indulge are led to dining tables in the rear. Using individual phones provided at each table, diners dial into a service area where someone picks up and takes the order. A server then runs the food into the auditorium.

Edge says that in order to cut down on the noise and concerns over excessive alcohol consumption, the phone systems are cut off 30 minutes after the movie starts. Patrons may still get up at anytime and order from a separate alcohol-free concession stand.

As a Culinary Institute of America graduate, Edge says that he never wanted to be a “burgers, fries and nachos” place. Though he owns a separate restaurant right around the corner, Edge doesn’t offer elaborate entree selections at his cinema because they require too much noise and overhead light to eat comfortably. The Carolina’s cuisine runs more toward buffalo wings, onion blossoms, grilled shrimp, gourmet sandwiches and salads.

Although there are no age restrictions at the Carolina, Edge has made it a policy to never show G-rated movies at his facility, screening instead mostly PG-13 and R-rated fare.

Stealthy and Alert
From the beginning, Alamo venues have enforced a strict policy of prohibiting children under six from attending its regular shows. No one under 18 is admitted to any regular show unless accompanied by a parent or guardian.

Patrons at all Alamo sites are seated behind long, thin tables situated before each row; on the other side of the tables are narrow access spaces for servers. “The waiter’s job is to be stealthy and stay hidden, but at the same time, serve you whenever you need something,” explains Alamo food and beverage vice president Paul Michie. Paper and pencils are provided with the menus, so patrons can write down their orders and stick them in a special clip. Once in the clip, the paper acts as a flag, alerting the server to collect it.

Usually, Michie says, all of the communication is through written commands, but servers are trained to get a sense of how much a patron wants to talk. Checks are dropped off 30 minutes prior to the end of the film when the servers announce last call.

AICN’s Knowles says one of his favorite aspects of the Alamo chain is its use of vintage trailers (many hand-picked from Tim League’s personal film library) to get moviegoers in the mood for the main feature. “Kill Bill,” for example, was preceded by a trailer for a film that helped inspire it, the 1974 Swedish revenge actioner “They Call Her One-Eye.”

Back To Port
Operating an FRCE can be personally satisfying and enormously lucrative, says the Commodore’s Schoenfeld, even if establishing one might require more energy and money than a traditional cinema.

After operating the Commodore for nearly 13 years, Schoenfeld, 58, says he has no interest in opening another FRCE, and instead serves as a consultant to those who do. One senses he has a lot of consulting ahead of him.

When people leave the Commodore, says Schoenfeld, “they almost always ask, ‘How come we don’t have anything like this in our town?’” 

 

 

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