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Start a Drive-In Movie Theater

Be the Conductor of Starlit Movie Nights: Your Drive-In Theater Journey Starts Here

By Business.How Team
| Updated
Drive-In Theatre signage non wall
Camera Icon Tim Mossholder / Unsplash

DRIVE-IN MOVIE THEATER

A drive-in movie theater is an eccentric blend of both entertainment and nostalgia; a venture that wraps movie watching and automobile convenience into a single package. This type of business operates by providing an outdoor screen and individual speaker systems so that customers can watch movies from the comfy cocoon of their own car. As a new entrepreneur, visualise your drive-in theater as a lively community hotspot where both cinema lovers and classic car enthusiasts meet under a blanket of stars. A place where the alluring aroma of popcorn mingles with the night breeze drawing in customers and creating an unforgettable experience.

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DRIVE-IN MOVIE THEATER MINI BUSINESS PLAN

This a quick reality check to help you identify the strengths and weaknesses of your business concept before you dive in.

Expected Percent Margin:

  • Gross Margin: 40-50%
  • Net Profit Margin: 10-15%

Earnings Expectations:

  1. Daily Earnings: $500 - $1500
  2. Weekly Earnings: $3,500 - $10,500
  3. Monthly Earnings: $15,000 - $45,000
  4. Annual Earnings: $180,000 - $540,000

Actions to Hit Those Numbers:

Infrastructure and Licensing:
  • Ground Space Acquisition: Need a large lot, usually around 5 to 10 acres.
  • Latest Tech: Up-to-date projectors and sound system, would cost around $70,000 - $80,000.
  • Movie Licensing: Varies based on movie and the expected audience size, usually around $250 - $1000 per film.
Marketing and Customer Acquisition:
  • Local Marketing: Regularly hold event nights, screenings of popular films, classics or independent movies.
  • Social Media Advertising: Create engaging content and interact with followers, potential business promotion might cost $200 - $500 monthly.
Concessions and Ancillary Revenue:
  • Food and Snacks: Operate a concession stand selling popcorn, snacks and beverages. This can contribute significantly to revenue.
  • Merchandising: Consider selling movies related merchandise for extra income.
Cost Control:
  • Maintenance: Keep maintenance costs in check with regular equipment service.
  • Utilities: The operational costs would also include utilities like electricity, waste disposal.
Business Operations:
  • Ticket Pricing: Average ticket pricing can be approximately $5 for children and $8 for adults. Prices may vary based on the area and competition.
  • Screening Volume: Depending on hours of operation aim for at least 2-3 showings per night.

These estimates are subjective to location, season and features of the drive-in theatre. It's always wise to create a detailed business plan and conduct thorough market research-plus seek professional financial advice along the way.


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Grab Your Business Website Name

Before you get caught up in the whirlwind of setting up your business, invest in a domain name. It's a small but significant step that lays the foundation for your brand and makes it easier for customers to find and trust you. Just like you wouldn't build a house without securing the land first, don't build a business without securing your domain name.

"Why? Can't that wait?" Here's why it shouldn't


Step 1: Determine if the Business is Right Endeavor

Breakdown of Startup Expenses

Before starting a drive-in movie theater, it is important to understand the costs associated with it. Startup expenses can include the cost of land, the cost of building the theater, the cost of equipment, and the cost of marketing. Additionally, you will need to factor in the cost of permits and licenses, insurance, and the cost of hiring staff. It is important to create a budget and to research the costs associated with the business to ensure that you have the necessary funds to get started.

Breakdown of Ongoing Expenses

Once the drive-in movie theater is up and running, there are ongoing expenses that must be taken into consideration. These expenses can include the cost of electricity, the cost of maintenance and repairs, the cost of film rentals, and the cost of advertising. Additionally, you will need to factor in the cost of staffing, the cost of concessions, and the cost of insurance. It is important to create a budget and to research the costs associated with the business to ensure that you have the necessary funds to keep the business running.

Examples on Ways to Make Money

There are a variety of ways to make money with a drive-in movie theater. The most obvious way is to charge admission for each movie. Additionally, you can make money by selling concessions such as popcorn, candy, and drinks. You can also make money by renting out the theater for private events or by hosting special events such as trivia nights or movie marathons. Finally, you can make money by selling advertising space to local businesses.

Step 2: Name the Business

When naming a business, it is important to come up with something that is memorable and unique. It should also be something that is easy to say and spell. It is also a good idea to make sure that the name is not already taken, so it is important to do a search to make sure that the name is not already in use. Additionally, it is important to make sure that the name is not too long or too complicated. It should be something that is easy to remember and that will stand out. It is also important to make sure that the name is appropriate for the type of business that is being started. For example, a drive-in movie theater should have a name that is related to the movie industry.

Step 3: Secure Financing

When it comes to financing a drive-in movie theater, there are a few options available. The first option is to secure a loan from a bank or other financial institution. This will require a business plan, financial projections, and a credit score. Another option is to seek out investors. This could include family, friends, or venture capitalists. It is important to remember that investors will want to see a return on their investment, so it is important to have a solid business plan in place.

Another option is to use a crowdfunding platform. This is a great way to get the word out about the business and to raise money from a larger pool of people. Finally, it is possible to use personal savings or a combination of the above options. It is important to do research and find the best option for the business.

Step 4: Obtain Necessary Licenses and Permits

When starting a drive-in movie theater, it is important to obtain the necessary licenses and permits. Depending on the location, the types of licenses and permits needed may vary. Generally, a business license, a liquor license, a zoning permit, and a building permit are required. Additionally, if the drive-in theater is located in a state that requires a special license for movie theaters, this must be obtained as well.

How to Obtain Licenses and Permits

The process of obtaining the necessary licenses and permits for a drive-in movie theater can be complex. It is important to research the specific requirements for the location of the theater. Additionally, it is important to contact the local government offices to find out what the process is for obtaining the necessary licenses and permits. It is also important to contact the state government to find out if any additional licenses or permits are required.

Cost of Licenses and Permits

The cost of the licenses and permits needed to open a drive-in movie theater can vary depending on the location. Generally, the cost of a business license is around $50, while the cost of a liquor license can range from $100 to $1,000. Additionally, the cost of a zoning permit can range from $50 to $200, and the cost of a building permit can range from $50 to $500.

Timeframe for Obtaining Licenses and Permits

The timeframe for obtaining the necessary licenses and permits for a drive-in movie theater can vary depending on the location. Generally, it can take anywhere from a few weeks to several months to obtain the necessary licenses and permits. It is important to contact the local government offices to find out the specific timeframe for obtaining the necessary licenses and permits. Additionally, it is important to plan ahead and start the process of obtaining the necessary licenses and permits as soon as possible.

Step 5: Find a Suitable Location

When deciding on a location for a drive-in movie theater, there are several factors to consider. First, the location should be easily accessible, with good visibility from the road. It should also be large enough to accommodate the number of cars expected to attend the drive-in. Additionally, the area should be free from noise and other distractions that could interfere with the movie-viewing experience. Finally, the location should have adequate parking and restroom facilities.

Securing the Location

Once a suitable location has been identified, the next step is to secure the property. This can be done by leasing or purchasing the land. It is important to research the zoning laws in the area to make sure that the drive-in movie theater is allowed in the area. Additionally, it is important to research the local regulations regarding noise and other potential disturbances. Once the property has been secured, the next step is to begin the process of building the drive-in movie theater.

Step 6: Purchase Equipment and Supplies

The list of equipment and supplies needed to start a drive-in movie theater will vary depending on the size and scope of the business. Generally, the list will include a projector, a large screen, a sound system, and a ticket booth. Additionally, the business will need to purchase concession supplies such as popcorn, candy, and soft drinks. It is important to research the best prices and quality for these items to ensure the best value for the business.

Where to Purchase

When it comes to purchasing the necessary equipment and supplies for a drive-in movie theater, there are a few options. The most obvious choice is to purchase the items from a local retailer. This option allows for the business to get the items quickly and to be able to ask questions about the product. Additionally, the business can purchase the items online from a variety of retailers. This option is often cheaper, but it can take longer to receive the items.

Financing Options

For those who are starting a drive-in movie theater, financing options are available to purchase the necessary equipment and supplies. Many retailers offer financing options, such as 0% interest for a certain period of time. Additionally, the business can apply for a loan from a bank or other financial institution. It is important to compare the different financing options to ensure the best deal for the business.

Insurance

When it comes to purchasing equipment and supplies for a drive-in movie theater, it is important to consider insurance. The business should purchase insurance to cover any potential damage or theft of the equipment and supplies. Additionally, the business should consider liability insurance to protect against any potential lawsuits or claims. It is important to research the different insurance options to ensure the best coverage for the business.

Step 7: Market the Business

Marketing is an important part of any business, and a drive-in movie theater is no exception. To ensure that your business is successful, you must create a marketing plan that will help you reach your target audience. Consider using traditional methods such as print, radio, and television advertising, as well as digital methods such as email campaigns, social media, and website optimization. You can also consider using promotional items such as t-shirts, hats, and other items to help spread the word about your business. Additionally, you can create partnerships with local businesses and organizations to help get the word out about your drive-in movie theater.

Develop a Website

Having a website is essential for any business in today's digital world. A website will allow you to showcase your business and provide customers with information about your drive-in movie theater. Consider using a website builder to create a website that is easy to use and navigate. Make sure to include information about your business, such as the types of movies you show, the cost of admission, and any special events you may be hosting. Additionally, you can use the website to promote upcoming movies and special events.

Utilize Social Media

Social media is a great way to reach a wide audience and promote your business. Consider creating accounts on popular social media platforms such as Facebook, Twitter, and Instagram. Use these accounts to post updates about upcoming movies and special events, as well as share photos and videos from your drive-in movie theater. Additionally, you can use social media to engage with customers and answer any questions they may have about your business.

Create a Loyalty Program

Creating a loyalty program is a great way to reward customers for their loyalty and encourage them to come back to your drive-in movie theater. Consider offering discounts or free items to customers who attend multiple movies or who purchase multiple tickets. Additionally, you can offer special discounts or promotions to customers who refer their friends and family to your drive-in movie theater. This will help you build a loyal customer base and ensure that your business is successful.

Step 8: Hire Employees

When hiring employees for a drive-in movie theater, it is important to consider the type of employees that will be needed. Depending on the size of the theater, there may be a need for a manager, projectionist, ticket taker, concession stand workers, and janitorial staff. It is important to ensure that all employees are properly trained and have the necessary qualifications for the job. Additionally, it is important to ensure that all employees are properly compensated for their work.

Benefits of Hiring Employees

Having a team of employees can be beneficial for a drive-in movie theater. Employees can help to ensure that the theater is running smoothly and efficiently. Additionally, having employees can help to reduce the workload of the owner or manager. Employees can also help to create a positive customer experience, as they can provide assistance and answer any questions that customers may have.

Finding Employees

Finding employees for a drive-in movie theater can be done in a variety of ways. One way is to post job openings in local newspapers or online job boards. Additionally, word of mouth can be a great way to find employees. Asking friends and family for referrals can be a great way to find qualified and reliable employees. Additionally, many local colleges and universities have job boards that can be used to find potential employees.

Training Employees

Once employees have been hired, it is important to provide them with the necessary training. This should include training on the theater’s policies and procedures, as well as safety protocols. Additionally, it is important to provide employees with the necessary equipment and tools to do their job. This may include a projector, ticket taker, and concession stand equipment. Providing employees with the necessary training and tools will help to ensure that they are able to do their job effectively.

Step 9: Open for Business

Opening day is an exciting time for any business, and a drive-in movie theater is no exception. To ensure a successful opening day, there are a few tips to keep in mind. First, make sure to have enough staff on hand to handle any customer inquiries and to help with any technical issues that may arise. Additionally, it’s important to have a plan for how to handle any potential weather issues, such as rain or wind. Finally, make sure to have plenty of snacks and refreshments available for customers, as well as any promotional items that may be available.

Promote the Business

Once the drive-in movie theater is open for business, it’s important to promote the business to ensure that customers know it exists. This can be done through a variety of methods, such as using social media, creating a website, and running ads in local newspapers. Additionally, word-of-mouth can be a great way to spread the word about the business. Finally, it’s important to create a loyalty program to reward customers for their repeat business.

Monitor the Business

Once the drive-in movie theater is open and running, it’s important to monitor the business to ensure that it is running smoothly. This includes tracking customer feedback, monitoring the financials of the business, and making sure that the staff is adequately trained. Additionally, it’s important to stay up-to-date on any new technology or trends that may be relevant to the business. Finally, it’s important to make sure that the business is compliant with any local or state regulations.


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