Watching the newest blockbuster with your family in a multiplex is always great fun. And when you get hungry during intermission, there is nothing better than the sound of crunching popcorn to open up your appetite. But why are these tasty snacks so expensive?
Popcorn Is Absurdly Priced
A medium sized portion of popcorn costs less than a dollar to make, but it is sold seven or eight times that price in movie theaters. How could they do that and why are people mostly comfortable with that?
Multiplexe Cinemas Get Only a Tiny Percent of Ticket Sales
First of all, these cinemas do not earn much from the movies. They claim that more than ninety percent of tickets revenue goes back to the production companies, which leaves them with a very, very low profit.
Building a Multiplex Is a Huge Investment
Second of all, building a multiplex is a huge investment, and it usually takes years for the investors to get only a part of their investments back. Actually, when you think about how fast are these things built and how big they are, it's no wonder that they start off with a massive debt.
This Is Where the Food Comes In
So if multiplexes cost so much and ticket sales are no good profit, how could they be sustained? The real earners are actually the snacks for which every starving movie fan craves for!