No trip to the movies is complete without popcorn. But more consumers are deciding to buy concessions without ever setting foot in the theater.
AMC Theatres revealed this week that food delivery sales at its cinemas are up nearly 50% year over year and are now a multimillion-dollar business for the world’s largest theater chain.
The 850-unit AMC offers most of its concessions, including popcorn, for delivery via third-party services DoorDash, Uber Eats, and, as of this week, Grubhub, in select locations. It has found surprising demand for movie snacks outside of the movie theater.
“It’s hard to beat having it fresh at the theatre, but we also know people want to enjoy those same foods at home, whether it’s for a movie night in, a gathering, or simply because they’re craving it,” said Cassie Kennard, AMC’s manager of media relations, in an email.
One of AMC’s best-selling delivery items is popcorn, and it has leaned into that demand with the AMC MegaBag, a giant sack of freshly made popcorn that is packaged for takeout and comes with a buttery topping on the side.
But the theater chain has also been expanding its food and beverage options beyond the usual movie theater fare. In May, it added new items to its Feature Fare lineup of “elevated” snacks, including street corn poppers, popcorn chicken, dill pickle pretzel bites, and a hot honey sausage pizza.
These items hit on several trends, including pickles, sweet/spicy combos, and boneless chicken, that consumers might expect to find on restaurant menus. They’re offered in about 400 AMC locations, and many are available for delivery.
AMC's new Feature Fare lineup. | Photo courtesy of AMC Theatres
Food delivery has experienced exponential growth since the pandemic, when many consumers were introduced to the convenience of delivery. Last quarter, DoorDash revenue rose 36% year over year, while Uber’s increased 28%.
Kennard said just being present on delivery apps has been a big part of AMC’s delivery growth. And it is not the only movie theater chain to embrace the fast-growing channel. Competitors Cinemark, Regal, and Alamo Drafthouse also offer delivery at certain locations.
And while more consumers are apparently taking part in those offers, they are also still going to theaters. As of this week, the U.S. box office was close to breaking the all-time record for summer admissions set in 2013, thanks to a series of blockbusters including “Toy Story 5,” “The Odyssey,” and “Spider-Man: Brand New Day.”
That has also been good for concessions sales. Last month, AMC reported its best single weekend ever in terms of revenue, driven by the opening of “Spider-Man” on July 31. More than 10 million people visited its theaters globally, setting records for both admissions revenue and food and beverage sales.
During the first six months of the year, the chain generated $923.4 million in food and beverage revenue, an 18% year-over-year increase, according to financial filings. Food sales grew faster than admissions, which rose 16.6%, and accounted for nearly 35% of the company’s total revenue.
A strong box office should also benefit restaurants. Better ticket sales tends to boost dining traffic, as many consumers opt for the classic pairing of dinner and a movie.
But movie theaters’ entry into the delivery business also adds to an increasingly competitive landscape for restaurants. Convenience stores and grocery stores are also expanding their food and delivery offerings at a time when consumers are being more selective about how they spend their dining dollars.
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