The number of movie theaters is decreasing as the major chains create megaplexes that pile more people into smaller spaces. This profit strategy has left once popular downtown theaters vacant. Second Run Pizza is a theater/restaurant business that believes there is a significant number of theater-goers that are craving a more satisfying and enjoyable way to catch a movie and a bit to eat. Second Run Pizza is renovating the downtown Majestic Theater and creating a medium-size restaurant that will show second-run movies that have proven to still be popular to our target market. We will offer a totally unique dining and movie experience at a affordable price that will fill the theater space with repeat customers.
The owners of Second Run Pizza, Robert Williamson and Judy Fillmore, stress two factors that they believe assures the success of the business:
Judy's 15 years experience as a manager of four of the city's most successful restaurants and Robert's experience as manager of the Lighthouse Theater, a small art house theater which has recently returned to profitability under Robert's stewardship.
Robert's strong seven year working relationship with Premiere Film Distributors which will provide the second run films for Second Run Pizza.
Our market and financial analyses indicate that with a start-up expenditure of £300,000 we can generate £600,000 in sales by the end of year one, and produce high net profits by the end of year three.
Sales over £600K the first year, more than a million by the third.
Personnel costs less than £300K the first year.
Profitable in first year, with net profits increasing each year.
Second Run's mission is to create a new theater experience for our customers that will be so enjoyable and satisfying that they will return often and recommend Second Run to their friends and family. Our customers will be delighted with our level of service, the quality of the food, and a theater environment that is second to none. When the film ends and the applause die out, we believe that our customers will prefer to watch a new movie at Second Run rather than to ever be squeezed into a Megaplex again.
1.3 Keys to Success
Selection of popular films that work best in the group viewing environment; i.e. comedies, scary or adventure films.
Provide exceptional service that leaves an impression.
Consistent entertainment atmosphere and product quality.
Managing our internal finances and cash flow to enable upward capital growth.
Strict control of all costs, at all times, without exception.