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The Honolulu Advertiser
Posted on: Monday, September 15, 2003

$1 films pack Kailua Cinemas

By David Butts
Advertiser Staff Writer

Three months ago, Kailua Cinemas looked like a theater destined for the wrecking ball. The few patrons that ventured in were greeted with a dank smell, broken seats taped over with an "X" and a sound system that was more painful than pleasurable.

Kanoe Reece of Hau'ula and her husband, Kim, ordered snacks for their movie at Wallace Theatres' Kailua Cinemas last night. The theater may have a $1 deal on the tickets, but the profit is made at the concession stand.

Rebecca Breyer • The Honolulu Advertiser

Then Steve Guffey had an idea.

The Wallace Theatres executive lowered the price to $1 (50 cents before 6 p.m.) and began showing slightly older movies ("Charlie's Angels: Full Throttle" and "Legally Blonde 2"). Now the place is packed.

Attendance is up tenfold. Late-afternoon and evening showings on the weekends are sold out. And the company said it is making a killing at the concession stand, where prices haven't changed.

"You would learn this in first-year microeconomics, chapter four," said Gary Kikuchi, the undergraduate adviser in economics at University of Hawai'i. "If they can just get the people in, that's a smart strategy. Most of money at theaters is made off concessions."

"We offer our patrons the best movie deal in the state of Hawai'i," says the recorded message for Kailua Cinemas.

The question is whether others theaters will follow suit.

"They might be making a lot of profit in the short term," Kikuchi said. "But if this strategy seems to work, you will see more people using it, and their profit will go down."

So far that's not happening.

Consolidated Theatres says it has no plans to switch any theaters to $1 admission, even though its 'Aikahi theater in Kailua seems to be a likely candidate.

Manager Jason Hart rings up Edna Williams of Waimanalo for her ticket at Wallace's Kailua Cinemas.

Rebecca Breyer • The Honolulu Advertiser

Signature Theatres' three multiscreen, stadium seating complexes on O'ahu don't fit the profile for the $1 theater.

Wallace switched Kailua because of it proximity to competitive stadium complexes, said David Lyons, vice president of marketing at Wallace's Portland, Ore., headquarters. Wallace also converted its Kress Cinemas in Hilo to the $1 format.

Meanwhile, Kailua Cinemas' $1 policy seems to be here to stay.

"We are pleased with the results," Lyons said. "We don't plan on changing the format."

Chip Abbadessa, a Kane'ohe chiropractor, was drawn to Kailua Cinemas by the cheap price.

"It's $1 to get in and then $6 for the popcorn, but it works," Abbadessa said. "It's a cheap trick."

He saw "Down with Love" and said he'll go back even if the concession prices seem high.

Many of the patrons are teens dropped off by their parents or families with small children, and it can get loud during the shows, but the numbers seem to demonstrate the customers like what they get.

Lyons said attendance has been going up every week and with the blockbuster summer movies soon to be coming to Kailua Cinemas, he expects that trend to continue.

He also said Kailua Cinemas is not taking business away from nearby Keolu Cinemas, which is also run by Wallace.

"We are finding it is a different customer," he said. "One who would normally rent a video or DVD. A family who wouldn't see it on a big screen."

Reach David Butts at dbutts@honoluluadvertiser.com or 535-2453.