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As Such, The Additional Income Must Be Found Some Other Way. The Reason Why ...

As such, the additional income must be found some other way. The reason why it is believed that the Gold Class concept can provide an increased ROI is that the focus is not on an increase in income from that part of the business which distributors take a cut of, but rather the food and drinks side which is royalty free and at present extremely under utilised.
At present the food and drink service at a cinema consists of sugary and fizzy drinks and sweets, ice cream, chips and popcorn, all overpriced and extremely unappetizing to most adults. By offering cooked meals and drinks (at a reasonable premium), which are brought to the cinema patron's seat during the movie, this under utilised part of a cinema's business is suddenly transformed into an income generating engine. Suddenly, going to the cinema is no longer something one does before or after going to dinner or the pub, but a dinner destination in its own right.
Furthermore, the Gold Class concept also means that there is not as much reliance on the latest blockbuster for profits.

While the latest blockbuster will always remain the main draw card for patrons, being able to put on older, cult movies, for example Indiana es, Casablanca, Rocky, etc will mean a larger take of ticket sales for the cinema. The smaller size of the cinema would also make it ideal for business functions, family celebrations, etc where patrons would be able to hire the entire cinema on certain slow-business days lowering the traditional reliance on Friday and Saturday nights.
3. SWOT Analysis
Strengths:
The obtaining of a liquor licence gives the cinema a competitive advantage which is sustainable to a degree.
It is unlikely that planning permission for a new cinema would be given by the local Council. As such, as far as cinemas go, a customer's only option is to either attend this cinema or the multiplex.
Weaknesses:
It is not possible to protect the intellectual property behind the concept of a Gold Class cinema.
Patrons are only likely to pay a premium price for a movie when blockbuster movies are released. A lack of hit movies could make it difficult to sell tickets.

Opportunities:
There are plenty of small, family run cinemas which are currently struggling. The depressed market and the Gold Class concept give the owners the opportunity to purchase cinemas at a reasonable price and turn them back into profitable enterprises.

Threats:
The Gold Class concept relies on people willing to spend a little more to enjoy a more luxurious cinema experience. If the economy was to falter, value added businesses like Gold Class cinemas would be the hardest hit.
If the concept proved to be a success, there is nothing stopping the multiplexes from offering a similar service.
There is a threat that by offering alcohol in the cinema, the problems associated with anti-social behaviour could follow.
4.

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