Beyond the Screens: How Theaters Win with Better Procurement

Save Money on Theater Operations Through Your Purchasing Strategy

Going to the movies is the ultimate leisure activity. However, in the world of streaming, the theater industry is changing. Ticket sales alone no longer drive profitability. In fact, most theaters rely on food and beverages to maintain healthy margins. But inflation, labor shortages, and supply chain disruptions have made it harder than ever to control costs and ensure consistency in concessions procurement and beyond.

A well-executed concessions procurement plan helps theater operators balance profitability, customer satisfaction, and competitive positioning.

Procurement Pressure Points for Theaters

Operators across the hospitality and leisure industry are facing pressures on bottom lines. Theaters are no exception. Inflation and rising ingredient and supply costs are affecting budgets. Additional supply chain volatility means that operators must take a careful look at where their products come from and how they could be affected by global economic changes.

Meanwhile, labor shortages are leaving locations understaffed. The COVID-19 pandemic kick-started what experts call “the great reshuffle.” Individuals continue to move to different jobs, seeking out culture, pay, and flexibility differences. Fully in-person jobs, including those in theaters, are being hit hard by resignations.  

Creating a Strategic Concessions Buying Plan

So, how can theater businesses fortify themselves against these challenges? A well-designed procurement strategy can not only help you buy better but add resiliency to your operation.

The right plan should cover:

• Cost-control measures – leveraging volume purchasing and accessing contract pricing through a GPO can help you secure lower prices on high-demand items. This not only reduces unit costs but also cushions the impact of inflation and market volatility.
• Menu optimizations – a strategic procurement plan allows theaters to source trending and premium items without sacrificing profitability. SKU rationalizations, programs options and more make this possible.
• Data analytics access – when working with multiple manufacturers and distributors, it’s essential to have a consistent method for reviewing pricing and savings opportunities. Data and eProcurement tools can help with this.

Where Group Purchasing Comes into Play

Group purchasing organizations (GPOs) like Foodbuy Hospitality are game changers for theaters looking to elevate their procurement strategy.

GPOs pool the purchasing power of many businesses to negotiate lower prices and better service from suppliers. Members benefit from:

• Access to a vetted network of national and regional vendors.
• Competitive rates on thousands of items across multiple categories.
• Data insights, reporting tools, and hands-on guidance to help optimize performance.

Whether you run a national multiplex, a boutique cinema, or a dine-in theater concept, a GPO can tailor solutions to match your unique needs and elevate your purchasing operations.

Ready to boost your margins and streamline your theater’s operations? Partner with Foodbuy Hospitality to turn smarter purchasing into bigger profits. Contact us today to learn how our GPO solutions can support your success behind the scenes.