Alamo Drafthouse Cinemas

Overview

Alamo Drafthouse Cinemas is a unique movie theater chain known for its strict no- talking policy, a curated selection of films, and a full-service food and beverage menu. The brand has established itself as a leader in the dine-in cinema industry, offering a blend of mainstream and independent films, special events, and themed screenings. Alamo Drafthouse has gained a cult following due to its distinctive atmosphere and commitment to the movie-going experience.

History

Alamo Drafthouse was founded in 1997 by Tim and Karrie League in Austin, Texas. The first location quickly became a favorite among film enthusiasts due to its eclectic programming and innovative concept of combining dining with the movie- watching experience. Over the years, the brand expanded, opening locations across the United States and franchising its concept. Despite challenges in the competitive cinema industry, Alamo Drafthouse has remained popular due to its unique offerings and strong brand identity.

Investment Breakdown

● Initial Investment: The initial investment for an Alamo Drafthouse franchise can range from $2,000,000 to $5,000,000, depending on the location and size of the theater.

● Franchise Fee: The franchise fee is approximately $75,000, which grants the franchisee the right to operate under the Alamo Drafthouse brand.

● Ongoing Fees: o Royalty Fee: 5% of gross sales. o Marketing Fund Contribution: 1% of gross sales. The high initial investment reflects the significant costs associated with opening and operating a cinema, including real estate, construction, and equipment. However, franchisees benefit from the strong brand recognition and a well- established operational model.

Industry Snapshot

The movie theater industry has faced significant challenges in recent years, particularly due to the rise of streaming services and the impact of the COVID-19 pandemic. However, dine-in theaters like Alamo Drafthouse have carved out a niche by offering a premium experience that cannot be replicated at home. The industry is seeing a resurgence as audiences return to theaters, with a growing demand for unique and immersive experiences.