Posted in AMC Movie Theatre
Movie theaters generate revenue through ticket and concession sales, but
most of a theatreâs profit comes from concession sales â popcorn, soft drinks,
candy, and related snacks. Because concession sales are down, the Board of
Directors of AMC wants to add either (a) wine and beer, or (b) cappuccino and
hot chocolate, to the menu in each of the theatres they own, nationwide. The
AMC Board has hired you (a team of consultants) to research these options, and
to provide a recommendation: should they sell wine and beer, or should they
sell cappuccino and hot chocolate? You will need to conduct research to
determine (or estimate) what the profit potential is for each option, what the
theatre might have to invest in equipment, and what risks each option might
pose. Consider possible solutions (for example, can they offer one of these
products while minimizing risk somewhat?), establish criterion/criteria to
narrow down the solutions, provide a single recommendation, and discuss
implementation considerations.
