From the 10q
Our New Business Model for Georgetown 14 Cinemas
For several years, large theater chains such as AMC and industry start-ups like Studio Movie Grill have been reinventing the theater business – with more restaurant-style food choices and greater comfort. Audiences at an ever-growing number of “dine-in theaters” can order such dishes as chicken salad rolls or limoncello-tossed shrimp. More middle-of-the-road fare is also available, like cheeseburgers and chicken Caesar salads. Seats in these in-theater dining cinemas are big and plush. Lobbies are luxurious. A full bar is standard.
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The dine-in theater business concept has been validated, with increased theater revenues following conversion to in-theater dining and quickly trending up. Different theater groups have developed different styles of food services. Some allow customers to order food and drinks throughout the movie presentation, while some limit food and beverage ordering to before the start of the film. But they all share certain similarities: 1) a complete kitchen operation, like a restaurant inside of a theater, 2) a full “meal menu”, often with higher-priced cuisine, and 3) in-theater wait staff.
FullCircle Entertainment’s business concept follows the successful growth of dine-in cinema, but we’re implementing a different strategy called “Dine-in Lite,” which is carefully designed to provide superior seating and food service, but eliminates the expense of our competitors’ restaurant-in-theater concepts.
Conversion to “Dine-In Lite”
After extensive brand name research, the Company filed for the service mark “Cinema Lounge” with the United States Patent & Trademark Office covering International Classifications 041 (movie theaters) and 043 (bar & restaurant services). The Company also owns the cinemalounge.net domain name. In early 2017, the Company will be complete the re-branding process and Georgetown 14 Cinemas begin operations as Cinema LoungeTM.
The Cinema Lounge logo will be prominently displayed on a new theater entrance façade, taking advantage of a matching grant we expect to receive from the International Marketplace Coalition. The new entrance would extend twelve feet above the current building roofline, giving the theater a recognizable identity it has lacked since its original design in 1983. Skylightsare to be affixed the top of the façade tower, broadcasting our location in a traditional “show biz” fashion.
Conversion to Recliner Seating
The Company’s plan is to convert 10 of the 14 theaters to luxury recliner seating as part of a comprehensive interior upgrade. The remaining auditoriums will stay in a stadium seating configuration to better fit the theater’s special event and film festival strategies. The seating conversion should be completed during 2017, using a roll-out schedule that reduces impact to revenue.
We are anticipating making our first order of new recliner seating near the end of 2016. Our selected seating vendor, Irwin Seating Company, builds all their extremely durable seating products in Grand Rapids, MI. Irwin clients include Regal Theaters, Cinemark and Alamo Drafthouse. They will be assisting us in theater conversion design as well as installation.
Catering Services Instead of Kitchen Facilities
A key part of our Dine-In Lite strategy is to eliminate the need of a restaurant-style kitchen while still providing a unique new dining experience. Our new menu will present unique international food items, working with popular ethnic restaurants within the International Marketplace to present theater patrons with a wider variety of innovative food choices. Select menu items from these restaurants are brought into the theater’s new International Cuisine serving area every Friday, Saturday and Sunday evening.
Bringing Theater Back to Full Operations
Georgetown Cinemas has been operating with just 11 of our 14 theaters available for film presentation. In order to cope with decreasing revenues, critical projector and related technology repairs have been postponed. The Board and executive team are committed to getting all theaters fully-functional. With all 14 theaters scheduling films, rentals or special promotional events, the Company is confident in its ability to generate revenue margins that will result from targeting newly proposed investor funding for the designated expenditures that will permit the theater to perform at its peak potential.
2015 DODGE CHALLENGER 392cid SHAKER 485HP
