Movie theater snacks are expensive due to exclusivity, overhead costs, and the need to offset low ticket prices. Customers who buy concessions compensate for those who don’t, making prices high.
For many moviegoers, the experience isn’t complete without snacks like popcorn, candy, or soda. The idea of sinking into a chair with a bag of buttered popcorn in one hand and a frozen drink in the other holds a special fascination for many movie buffs. But why do these familiar snacks cost so much? The answer lies in the economic realities of most locally owned or chain theaters.
One reason snacks cost so much in theaters is the exclusivity. If a customer is hungry or thirsty in an average cinema, he has only one option. It’s not like a hungry theater-goer could pause the movie at one point and order a meal from a nearby restaurant. The theater’s concession stand is generally the only authorized source for food and drink, so the theater manager can legally levy a substantial surcharge on sales. This is the same reason snacks can also be more expensive at convenience stores or airports. The venue literally has a captive audience, and cheaper outside food can be confiscated without penalty.
Another reason for the high price tag is related to how the average theater makes a profit. There are a substantial number of overhead costs associated with running a movie theater, including the salaries of projectionists, concession workers, ticket sellers, ushers, managers, and maintenance crews. Managers also have to negotiate with distributors for the exclusive right to show popular titles. Movie tickets themselves have a relatively small markup because movie theaters want to keep prices as low as possible to attract patrons. Theaters can offset some of these costs by raising the prices of snacks and drinks.
There are many theater patrons who refuse to purchase concessions due to the exorbitant prices or attempt to smuggle food and drink into the theater. Ironically, it’s partly because of these practices that snacks cost so much in movie theaters. Customers who buy their popcorn, soda, and candy at the theater’s concession stand often compensate for those who don’t. In that sense, snack prices are high for the same reason bandages cost so much in hospitals: Those who can afford to pay the higher prices are helping to recoup the venue’s losses from those who can’t.
Protect your devices with Threat Protection by NordVPN
