Wednesday, April 06, 2011

1468 Corndemnation

It was actually the sub-headline that caught my eye. "Movie Chain operators fight proposed federal nutrition disclosure rules on concession snacks, saying they're an unwarranted intrusion into their business."
Um, aren't nutrition discloser panels an intrusion into any food purveyor's business? I'd be willing to bet McDonalds was none too pleased about it either. And if they lost, does Regal have a 3-D chance in Hades? Talk about Clash of the Titans.
The real reason I read the article was I wanted to know about the popcorn. Turns out the big tubs of popcorn are what you'd expect. A "large" theatre popcorn is around 1460 calories—the equivalent of three Big Macs. And you thought popcorn was low-calorie.
It is. But you have to avoid the magic theatre butter. And not eat a giant tub of it. Quick dietary note: Anything you eat an entirety of, and that is packaged in a quantity known as a "tub," will most likely have an impact on your waistline and/or heart attack frequency.
The article also had this bonus fact. You know how snacks in the theaters always seem high-priced? It's the "captive audience premium," like burgers at Disneyland. Part of the price of the movie, I figure, and certainly part of their profit profile. I just didn't know how much. Dude, I've got popcorn profit envy.
As David Ownby, chief financial officer of Regal Entertainment Group, recently said at an investor presentation, "We sell a bucket of popcorn for about $6. Our cost in that $6 bucket of popcorn is about 15 or 20 cents. So if that cost doubles, it doesn't really hurt me that much."
Wow, he sounds pleased enough to pop.
And the popcorn looks so much bigger with those attractively priced 3-D glasses too.
America, ya gotta love it.

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