Alamo Drafthouse Changes The Formula For Getting People Off Couches And Into Movie Theaters

It’s been a tough few years for movie theaters as the number of movie screens in the U.S. decreased by 5.3% from 2019 to 2022.

With several major theater chains announcing plans to close more theaters this year, the commercial real estate industry is facing a dilemma: What can you do with a shuttered or underperforming movie theater?

The answer, according to Chris Drazba, chief development officer for Alamo Drafthouse, may be surprisingly simple: Turn it into a different type of movie theater. 

“What separates Alamo Drafthouse from other theater circuits is that we create a unique moviegoing experience,” Drazba said. “It’s that experience that will get people off their couches and into theaters. You have theater owners holding onto dated assets with underwhelming operations, including line queues, terrible refreshments and copious amounts of on-screen advertising. This is not a compelling moviegoing experience.” 

Alamo Drafthouse started in Texas in 1997 and today has locations in 11 states across the country. While other theater chains are scaling back, Alamo Drafthouse is expanding and encouraging owners of struggling or closed theaters to consider becoming part of its growing franchise system.

Drazba said that one thing that sets Alamo apart is the wide range of films it shows — from major blockbusters to art house, independent films and classic greats. But aside from the diversity of its film choices, what really differentiates Alamo is the experience people have when they’re there.

It starts in the lobby. While other theaters have lines of moviegoers waiting to purchase tickets, the majority of Alamo guests buy tickets and choose seats online or through the Alamo app. So instead of large lobbies with concession stands and box offices, the theaters feature specialty-themed bars catering to the local market. These bars not only serve food and drink, but also host trivia nights, live entertainment and several other events that boost both revenue and community engagement. 

Once they take their seats, guests can order food and drinks from Alamo’s scratch kitchen, which offers a variety of fresh food options, classic cocktails and themed drinks crafted around the particular film they’re watching. Each venue offers a selection of 24 to 48 draft beers with an emphasis on local craft breweries. If they want more refreshments during the movie, they can press a button at their table and a server will collect their written order and bring it to them without disrupting the show. If they arrive early, instead of sitting through commercials, guests will watch a 30-minute custom-made reel related to the movie they’re seeing. 

“When Quentin Tarantino’s Once Upon A Time In Hollywood came out, Brad Pitt played a stuntman, so our 30-minute pre-show was a homage to the great stuntmen and women of Hollywood,” Drazba said.

He said that Alamo was not immune to the impact of the pandemic and did end up closing some theaters in the crisis’s early days, but the experience inspired the group to come back a “healthier, leaner, meaner” version of itself, which has inspired its growth over the past two years. Alamo recently opened theaters in Chicago; St. Louis; Crystal City, Virginia; Staten Island, New York; Washington, D.C.; and Lower Manhattan and has more locations planned in Boston; Fayetteville, Arkansas; Birmingham, Alabama; Glendale, Colorado; and Grand Prairie, Texas. 

“There are a lot of distressed theater real estate assets around the United States,” Drazba said. “We think that we have a solution in many of these situations where we can come in and breathe new life into a theater. We have been able to work with developers under a franchise model to make Alamo Drafthouse Cinema the centerpiece of either a shopping center or large multifamily development. It’s not only good for our brand, it becomes a community activator.” 

Alamo is the only theater circuit that is currently available to be franchised. Drazba said the chain works with developers on how to fix their movie theaters and turn them into moneymaking entertainment anchors that draw foot traffic and “rise all tides” in terms of co-tenancy mix. Alamo meets with its franchisees on a weekly basis to discuss film programming and handles 100% of the negotiations for film rentals with major studios, personally booking the films for all of its locations. 

“This takes the stress of programming and booking films off every operator so they can focus on the day-to-day execution, which is a heavy emphasis on providing quality food and beverage to our guests,” he said.

He added that Alamo’s app takes the strain out of reserving seats, spacing out guests and managing reservations, and knowing how many people are likely coming to each show in advance to help the kitchen better prepare. It also offers a Season Pass that fans can purchase that offers movie tickets and perks for a monthly fee, to turn moviegoers into subscribers and members of the brand. 

The theater chain is known for its strong policies discouraging people from using their phones during the film, but it is working on a feature of its app that would allow guests to pre-order their food and beverage before the show starts. 

“Innovation like this is part of our values to ‘Boldly Go’ places that enhance the guest and teammate experience,” Drazba said. “We didn't get to where we're at because we’re resistant to change. We have to continue to push the boundaries and make sure that our experience remains world class.” 

Reflecting on the last few years, Drazba said that the movie theater industry took the coronavirus’s “best shot” and has remained standing. Movie theaters aren’t going anywhere and consumers still want to watch content out-of-home, he said. They just need to adjust with the times. 

“If you attempted to imagine the perfect movie theater in today’s world, you would have a brand that looks exactly like Alamo Drafthouse,” he said. “We're in a great position to grow in a steady, consistent way while continuing to innovate our experience.” 

This article was produced in collaboration between Alamo Drafthouse and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.