So….How High Is The Mark-Up On Movie Theater Food ?
The food may not look quite as tasty to you after you read this.
Movie theater food is OBSCENELY overpriced. You knew that . . . but here's exactly how much. It's amazing any movie theater could ever go out of business when they're working with THESE margins.
Take a look: Popcorn
- $8.15: The average cost* of a large bucket popcorn (with free refill)
- 90¢: The estimated cost of the raw goods needed to make it, per McKenzie’s research
That’s a markup of nearly 806 percent from kernel to consumption.
- $6.31: The average cost* of a large soda
- 40¢: The estimated cost of the raw syrup that goes into a 50.5 oz. large Coke.
Adding in the cost of cups (say from Costco, $.07 apiece), lids (half a cent each), straws (about a penny per), and soda water (about 2 cents a serving) it’d be more like 51 cents a cup. Tack on another 40 cents if the moviegoer gets a free refill, and it’s still an 593 percent markup.
- $4.25: The cost of plain M&Ms at AMC
- $2.08: The cost of plain M&Ms from Wal-Mart
All in all a (relative) bargain at a 104 percent markup.
Why is it so damned expensive? Well, it kind of has to be if you want movie theaters to exist. According to McKenzie, theater owners need these concessions profits to cover the dozens of hidden house costs — employee wages, installation of snazzy sound systems, energy bills, for example — since most of the actual ticket money gets sent back up the ladder to the movie studios. “If movie theaters didn’t make as much off concessions, they’d want to charge more for tickets,” says McKenzie. But raising ticket prices is complicated because movie studios “put contractual controls on theaters in terms of prices they can charge.”
The theaters — much like expensive airport newsstands — capitalize on the fact that once you get into the building, they have a monopoly on your appetite. Where else are you gonna get popcorn, bub? (Don’t answer that: Yahoo does not wish to be an accessory to your snack smuggling.) So you only have one defense against these prices: will power. As McKenzie notes, you’re only in the theater for a couple hours. “[The theaters] have you to a degree,” he warns, “but if you have so little control over your consumption behavior then you’re just going to get caught.” In which case, savor every bite and try not to picture how much every kernel is costing you.