If you’re a cinephile with an entrepreneurial streak, you may have considered the idea of opening your own cinema. But just how feasible is it? More feasible than you may think. There are many operating costs to consider and laws to abide by, but in many cases it’s no more complicated than opening a store or a restaurant. This guide delves more into what you need to open a cinema.
Work out your USP
There are many cinemas already out there. Before opening your own movie theatre, you need to consider what you can do to make your cinema unique. Will you specialise in showing certain types of movies such as independent films, classic films, horror movies or sci-fi movies? Will you serve unique snacks and refreshments that can’t be bought at other cinemas? Or will you offer other services such as sit-down dining while watching movies, movie merchandise sales or children’s parties? By researching other movie theatres in your area, you can find a way to stand out that will help attract people to your cinema.
Get your funding
The cost of opening a movie theatre can vary depending on the size of your venue and the scale of what you provide. For very small-scale cinemas, you may be able to get away with using small business loans for funding. With larger cinemas, you may need to seek help from local investors. Community crowdfunding is also a great way to build funding while also building excitement for your cinema. Take your time to explore a variety of different funding options.
Find the right venue
Many cinemas are built in old theatre buildings or on the site of previously built cinemas. However, you don’t have to use one of these venues. Pretty much any building can be turned into a small-scale cinema – although you’ll likely want a large enough room to place your theatre room. You can rent out a building to use as a cinema or buy a building. Buying may provide more freedom when it comes to renovating, but is much harder to find funding for. There is also the option of building your own cinema, but this is not cheap at all.
Obtain licences
Cinema licensing laws vary around the world, but in all cases you will need some form of licence to operate. Types of licences that cinemas typically need to apply for include:
- A film copyright licence
- A premises licence
- A food licence
- An alcohol licence (if servicing alcoholic beverages)
There are many resources that you can find online to help you apply for the relevant licences.
Kit out your venue
The next stage is refurbishing your cinema and buying all the necessary equipment needed to operate it. You should start with the most important elements: seating, a projector and a screen. There are companies that can help with theatre design and installation including painting, installing lights, installing seats, installing surround sound speakers, soundproofing and providing HVAC. Once you’ve designed and kitted out your theatre, consider other areas such as the foyer and public bathrooms. If you’re selling popcorn or soft drinks, you’ll need relevant machinery to do this. If you’re serving alcoholic drinks, you may need to consider added bar equipment.
Set your pricing
The price of your tickets needs to be enough to make a profit on each movie you screen. Independent small-scale cinemas are often able to charge less than larger cinemas because they have less overheads, however you don’t want to set your prices too low in an attempt to outdo competitors. Remember that you can also make a profit through food and refreshments, as well as other potential services like memberships and or products like merchandise. Pricing these a little higher could allow you to price tickets a little lower. Alternatively, you may prefer to set the ticket price higher and offer cheaper refreshments to get more people buying food/drink. It’s worth doing your research to see what other cinemas are charging so that you can set the right price.
Hire your first staff
You will likely need to hire some staff to help offer refreshments, clean up or handle projectors. This will require registering as an employer and taking out worker’s compensation insurance. A few weeks before you are ready to open, start advertising for vacancies. Give yourself time to sift through applications and try to find the best talent that you can so that you start with a strong team. You will need to consider how much you will pay each employee and what hours you are able to provide. Creating a good benefit package could also be important (which could include discounted or free tickets to movie viewings).
Order food and drink supplies
You need to consider where you will order your food and drink from. You could keep this food and drink basic, or you could try to look for more unique food and drink to provide to your customers. Compare different suppliers to find the best prices and make sure that you’ve ordered enough stock for your launch. Remember to consider other supplies too like cleaning supplies or uniforms.
Promote your cinema
To get people to visit your cinema, you need to market it. Spend some time setting up a website and social media pages so that you first have a digital presence. You can then consider getting in touch with local news publications to drum up excitement for your cinema, or you could even print off some posters and flyers. When planning out your launch, think about which movies you can display to get people interested. You could also consider temporary discounts on tickets for the first month or other promotions on food/drink to get people through the door. Some cinemas even offer free viewing to a select few people to build up buzz.