Luxury movie theaters on the rise in suburbs

Luxury movie theaters on the rise in suburbs

The pampered theater-goer? At $35 a ticket, you’d better believe it.

And because the demand for a luxury movie experience seems to exist, the envelope is being pushed to ever-higher levels as more theater companies see a booming market, even in difficult economic times.

Seeing a movie “with all the trimmings” at three locations here operated by three different companies means a wide selection of gourmet dining options, often including an on-site restaurant and bar. One company even offers a children’s playroom staffed with certified teachers.

This past fall a Florida company entered the suburban market with one location. And this fall an Australia-based firm is opening the first of what are expected to be five to seven luxury theaters in the Chicago area during the next two to three years.

The trend started years ago in the suburbs here with AMC Yorktown Premium I where current ticket prices are $17 from a company which is based in Kansas City.

Muvico Theaters joined the trend with its opening pf the Muvico Rosemont 18 in September 2007 with prices ranging from $19 to $24, depending on the time and the day the movie is shown.

Gold Class Cinemas will go even further this coming September when prices are expected to be $35 in a facility which will be part of The Arboretum in South Barrington, a new lifestyle shopping center.

“Everyone is still tweaking the business model. Each approach has some differences,” said Neil Stern, a senior partner in McMillan Doolittle, a retail consultant with offices in Chicago.

The unanswered question, he said, is where is the price threshold?

“At $35 you are talking about prices for live theater performances and dinner theater presentation,” Stern said. “It remains to be seen.”

Stern pointed out that there is extra labor cost in providing a more complete menu as well as cocktails.

He noted that Muvico has both regular priced theaters and luxury theaters in the same building in Rosemont. Gold Class will have only the luxury seating.

AMC, which started the luxury movie trend in the suburbs here more than 10 years ago, also has both types of theaters in the Yorktown location, Stern noted.

“But the fact that AMC has not expanded to other locations in the suburbs here could be an indication that the concept is not going that well,” said Stern.

When asked to comment on that statement, AMC spokesperson Dee Larson said “While we cannot discuss specific financials, we do consider the AMC Yorktown Premium 1 one of our various successful theatres with premium amenities.

“We currently have no other locations in the suburban Chicago area and per company policy, we do not discuss potential locations until we have executed lease, letter of intent or purchase agreements.”

A Muvico executive did not return phone calls about whether the company planned any other locations in the suburbs or Chicago.

A Gold Class Cinemas executive was more specific. Kurt Senior, CEO of the Village Roadshow parent company, said in an interview from Australia with The Business Ledger that he expected to have five to seven luxury theaters in the Chicago area during the next two to three years.

“We would love to have one of those theaters in downtown Chicago, but high land costs there are a factor.” he said.

Village Roadshow, which is based in Australia, indicated that there would be two U.S. openings during the latter part of 2008, one in South Barrington and one in Redmond, Wash., outside Seattle.

Along with partners Lambert Entertainment and the Retirement Systems of Alabama, Village Roadshow expects to open more than 50 locations in major U.S. cities over the next five years.

Village Roadshow developed Gold Class cinemas in Australia during 1997. Success there has launched the luxury cinema concept and brand around the world, including Asia and Europe. The company is also an independent producer of Hollywood films.

“Targeting an upscale and affluent consumer, Gold Class Cinemas are superbly designed to provide a luxuriously intimate setting unlike any other cinema experience in the United States,” Senior claimed.

“The demand for luxury movie-going in the U.S. is very strong.

The Gold Class Cinema in South Barrington will have eight screens with a maximum of 40 seats in each theater. Each theater will have the latest state-of-the-art technology with digital projection, including 3-D, as well as super-wide screens and digital sound.

Guests can watch their film while enjoying fine wine and gourmet cuisine from the seasonal menu prepared by chefs in the Gold Class kitchen. A service button calls on a personal waiter should guests require any extra items.

The Gold Class Cinema will also feature a contemporary lounge and bar area where guests can relax and enjoy cocktails and light appetizers or desserts before or after a movie.

Last September, Muvico opened a 300-seat VIP Theater and a total of 502 premier VIP seats throughout the building which has 4,227 reclining stadium-style seats.

Upstairs in the Premier VIP, move fans 21 and over receive royal treatment for $12.50 additional Monday through Thursday and $15 extra Friday through Sunday. Amenities in the six theaters there include free valet parking, free popcorn and 74-inch plush seats, compared to the industry standard of 24-inch seats.

Downstairs, general admission patrons get extra leg and elbow room with 26-inch, oversized plush chairs. Dining options include extended concession options such as shrimp, pizza, ice cream and frozen drinks as well as the popular candy and popcorn treats moviegoers often offered. Prices are $7.50 for matinees and $9.50 for evenings.

In addition to showing a wide variety of first-run movies, Muvico Rosemont is designed to host sporting events and live music feeds. The company also makes its Premier VIP Theater available for corporate functions or private screenings.

The facilities also feature a full-service restaurant and bar, Bogart’s at the Premier, operated by the Levy Restaurants group. All foods and cocktails can be enjoyed in the VIP theater, featuring which large arm rests and cup holders.

To accommodate families with young children, Muvico Theaters provides an on-site playroom for children three to 10-years-old equipped with computers, arts and crafts and table games and staffed by certified teachers who provide educational supervision.

“Rosemont provided the ideal spot for our first Chicago-area location,” said Michael Whalen, president and CEO of the Ft. Lauderdale-based Muvico Theaters.

“We are proud to join a community focused on providing residents and visitors with so many entertainment options,” he said.

Muvico Rosemont 18 is an anchor tenant in a $500 million shopping and dining development planned by the village.

Rosemont Mayor Bradley Stephens said he expected Muvico to become a popular destination in the village’s entertainment district alongside the Donald E. Stephens Convention Center, Rosemont Theater and the Allstate Arena.

The AMC Yorktown Premium 1 at the southeast corner of that Lombard shopping center. Its “Premiums Concept” includes a single-screen auditorium, leather chairs and in-theatre service coupled with a stand-alone restaurant and bar.

“Many of the enhanced amenities that we offer at the AMC Yorktown Premium 1 have been part of AMC’s expanded business for years,” said a spokesman.

Dan McLeister, Contributing Writer

Posted on Wednesday, July 02, 2008 (Archive on Wednesday, July 09, 2008)
Posted by jstoltz Contributed by jstoltz

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