Wallace theater format succeeds

By Debbie Sokei
Advertiser Staff Writer

Attendance at Wallace Theatres' Restaurant Row 9 has more than quadrupled and hot dog sales are up twenty-fold since the movie house switched to a $1 admission format in January.

Chris and Sue Puletasi of Honolulu took advantage of Wallace Theatres' decision to change from art pictures to mainstream movies shown several weeks after their first release at the Restaurant Row 9. Rebecca Breyer • The Honolulu Advertiser

This "is the Costco of movie-going," Wallace said.

Wallace said the closing of the twin screen Kailua Cinemas last week stemmed from it being too close to the newer four-screen Keolu Center Cinemas, and it didn't make sense for one company to run both.

The discount format, showing mainstream movies several weeks after their first releases and making money on concessions, is a way Wallace's older theaters can remain profitable and competitive against stadium-seating complexes with digital sound and ample free parking.

At least four new multi-screen complexes with stadium seating have opened since 1999 in O'ahu. Those include Consolidated Theatres' Ward Stadium 16 and Ko'olau Stadium 10, and Signature Theatres' Dole Cannery 18 and Windward Stadium 10.

More than 35,000 people saw a movie at Restaurant Row in January, that was up from 8,200 tickets sold in December when the theater was showing art films, Wallace said. In February, more than 40,000 tickets were sold.

Based on the average of $2.10 moviegoers spend on snacks at discount theaters, Wallace made $73,000 in concession sales in January and $84,000 in February. Up from about $17,000 in snacks sold in December, Wallace said.

Nearly 1,700 hot dogs were sold in the first week of showing discount movies at Restaurant Row. Only 87 hot dogs were sold the week earlier when the theater was showing art films.

"That is a lot of hot dogs and it only grew from there," Wallace said.

Wallace has substantial help in making a profit at Restaurant Row from the center's owners. The company's lease agreement, which runs for another 12 years, allows it to operate the theaters rent free. The lease also gives Wallace patrons free parking.

Wallace was given the rent-free lease because the center's owner wanted to lock in an anchor tenant that would help bring customers.

"It's not uncommon for landlords to give anchor tenants attractive lease terms ... it makes or breaks the center," said Steve Sofos, president of Sofos Realty Corp.

Wallace also gets a break on the cost of renting films. By showing second run films, it pays only 35 percent of ticket sales during the first week of showing a release. The price drops each week after. For first run films, the distributor usually gets 70 percent of ticket sales in the first week.

Besides moviegoers, discount theaters need free parking, multiple screens and to be located in a high density area to survive, Wallace said.

He has all those components at Restaurant Row, and it is drawing customers.

Lakesha Henson said the discount movies fit in her family's budget.

"You can watch 10 movies here for the price of one movie at other theaters. It's just a little later but you'll still get to see it," said Henson, who goes to the movie twice a week with her husband, Jeremy, and their son.

After paying for their tickets, Jeremy Henson said they still have have enough money to buy some snacks.

"For price of the movie ticket, the popcorn and a drink that would be the same price we would pay for one movie ticket at the other theaters," he said.

Wallace is scouting around on Kaua'i to open a new, first-run theater there.

"We are a first run operator," Wallace said. "But occasionally an opportunity arises where the stars and planets are all aligned correctly and you can successfully convert and older facility to discount."

Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.