3 theaters to tap into alcohol sales

Ali Wright helps customers at Razorback Cinema in Fayetteville. Malco is updating three of its theaters, including the Razorback, with VIP seating, more food choices and a full bar.
Ali Wright helps customers at Razorback Cinema in Fayetteville. Malco is updating three of its theaters, including the Razorback, with VIP seating, more food choices and a full bar.

Early next year, at three Malco Theaters in Northwest Arkansas, patrons will be able to kickback in VIP seating, eat a meal from an expanded dining menu and wash it down with a cocktail, a glass of wine or cold beer.

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NWA Democrat-Gazette

The Razorback Cinema in Fayetteville will be renovated to include more dining options, a full bar and reclining seats.

The Memphis-based company is renovating the Rogers Towne Cinema, the Razorback Cinema in Fayetteville and its Fort Smith Cinema with work expected to begin early next year and completed within three months. The updates at each theater include reclining seats with side tables, additional grills, ovens and fryers, and a full bar with wine, beer and cocktails.

"Our emphasis has always been on quality and we have always stressed the importance of staying 'ahead of the curve' in sight and sound technology. Now, we'll be adding another layer of excellence by increasing the seating comfort of our patrons," Jimmy Tashie, senior executive vice president of operations, said in a release.

Privately-held Malco operates more than 350 screens in 34 locations in Arkansas, Kentucky, Louisiana, Mississippi, Missouri and Tennessee, according to the company website. Malco declined to answer further questions about the project.

In Arkansas there are a handful of theaters that serve, beer, wine or mixed drinks. The Ron Robinson Theater and the Riverdale 10 VIP Cinema in Little Rock; the historic 1929 Lyric Theater in Harrison; and the Hot Springs VIP Cinema all have permits to sell retail beer and wine on site. The Rogers Little Theater sells alcohol under a private club license while the Movie Lounge in Fort Smith operates under a restaurant mixed-drink permit.

According to information provided by Arkansas' Alcohol and Beverage Control Division, Malco has yet to apply for any type of permit to serve alcohol. If the theater wishes to offer cocktails, it will have to opt for a restaurant mixed-drink or private-club license, according to a spokesman.

To meet the requirements for a restaurant mixed-drink permit, an establishment must have a menu of items prepared on-site from a kitchen that meets state Health Department standards and the food must be sold up to two hours before closing. A private club permit has various requirements, including operating under a nonprofit corporation, having at least 100 members when its application is submitted and also has rules about service to members and guests.

Nationally, movie theater revenue for 2016 was projected at $15.4 billion, with profits of $2 billion, according to an industry analysis released by IBISWorld in August. The market research company said 28.7 percent of revenue in 2016 for the segment will come from food and beverage sales.

According to the report, movie theater companies are working hard to lure viewers back to the big screen while streaming platforms like Netflix have pulled moviegoers away over the last five years. IBISWorld said movie theaters saw average annual revenue growth from 2011 to 2016 of 2.9 percent, even while attendance dropped, mostly on the strength of increased ticket prices and renewed attention to concession sales.

Matt Smith, owner of Theatre Group Inc., has four movie theater locations in Arkansas, two of which, The Riverdale 10 VIP Cinema and the Hot Springs VIP Cinema, have permits to serve beer and wine. The locations offer seven types of wine and 40 beers. They also have an expanded food menu and reserved luxury seating -- leather seats that can be reclined electronically, with a table for each seat.

Smith said he's expanding his Hot Springs location, adding more screens and and luxury seating. At his Cabot Silver Screen 8 and the Searcy Cinema 8, he offers an expanded food menu and both are adding luxury seating in 2017.

He said naysayers have inaccurately predicted the downfall of movie theaters pretty much since their inception, claiming the advent of color television, the VCR and now streaming video services will be the industry's death knell. But, he said, movie theaters have continued to change and adapt over the years, from improving sound systems, adding stadium seating and shifting from film to digital.

At the heart, he said, movie theaters must continue to offer customers an experience they can't get at home.

He said most movie venues will convert to luxury seating, a smaller number will do that and add an extended food menu, and fewer still will add improved seats and food along with beer, wine or cocktails.

"It's the way of the industry," Smith said. "Luxury seating is the coming wave."

SundayMonday Business on 11/24/2016

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