What happens to existing theaters as new ones look to call OKC area home? (2024)

What happens to existing theaters as new ones look to call OKC area home? (1)

A new movie theater seems to be the big star in Oklahoma City's retail market these days.

Within the past few weeks, area developers have rolled out plans for new theaters in Midwest City, Oklahoma City and Edmond.

Two recently announced projects involve Warren Theatre and would be sequels to a tremendously successful operation the company opened in Moore in 2008.

One is proposed as part of a new retail project in Midwest City, while the other is proposed on land at the Kilpatrick Turnpike and Eastern Avenue in far-north Oklahoma City.

Another, a Showbiz Cinemas, plans to build a 12-screen theater that includes oversized leather seating in Edmond. The complex also will include a bowling alley, an arcade and an upscale bar as part of an ongoing development project Edmond has underway at Interstate 35 and Covell Road.

Still another, a proposed smaller project on land near Wilshire Boulevard and the Broadway Extension, could offer movie goers the chance to enjoy a meal and a drink as they watch the latest hit on the big screen, if Oklahoma's Legislature and governor approve.

But with the AMC 24-plex at Quail Springs Mall, the AMC 10 screen theater at Penn Square Mall, the Tinseltown at Eastern and Interstate 44 and other smaller, independent theaters still operating across the area, will all this be too much, too fast?

A theater consultant who works with developers and a retail analyst said adaptation will be key.

Charles P. Stilley, president and CEO of Stilley Partners LLC in Leawood, Kan., said he's not worried recent announcements will hurt the community's established theaters — provided they improve their operations.

"Expansion is OK (for existing theaters), because it will be about upgrading facilities," Stilley said.

For many, he said that would mean replacing what used to be industry-standard 22-inch-wide seats with the comfy recliners new theaters are rolling out.

But, changing concepts to improve menus and to offer alcohol also will be required.

Stilley noted Oklahoma has lagged in modern theater developments for the past few years because today's hot concepts all involve selling alcohol as part of their business model.

Out of nearly 20 theater operations Stilley said he works with that are actively looking to expand, he said there are fewer than five that don't include alcohol sales in their concepts. For the rest, "if they can't get alcohol into movie theaters, they don't even think about Oklahoma," Stilley said.

Changing times

In the late 1990s, major movie complexes featuring a dozen or more screens were all the rage.

The first, a Hollywood Spotlight 14 (known now as a Regal Spotlight Stadium 14) in Norman, opened in 1998. Cinemark opened its 20-screen Tinseltown in 1998, and AMC opened a 24-screen megaplex that same year, adding an IMAX screen in 2009.

Harkins opened a 16-screen complex of theaters in Bricktown in 2004.

Then, stadium style seating, large screens and awesome sound systems were the hallmarks of the day.

More recently, AMC bought the 10-screen theater at Penn Square Mall in 2013, and upgraded that complex to install large, comfortable electric recliners that are featured in many new operations.

To Stilley, the AMC operations at Penn Square and Quail Springs are market drivers, although he added the Quail Springs complex will need to upgrade its operation to remain relevant.

Stilley also observed the Warren Theatre in Moore does extremely well, and said there's a place for that concept in the market.

But generally, he said theaters getting built in 2017 are smaller, have fewer screens and prefer to be able to sell alcohol throughout their buildings.

Jim Parrack, vice president and retail specialist at Price Edwards & Co., said Monday he generally agreed with Stilley's comments.

"To me, the biggest issue with movies is whether or not the law gets changed to allow alcohol in the theaters," he said.

"Warren has done a good job of getting around that by segregating the different types of service within its theater (serving alcohol and higher-end foods in its Director's suite).

"But not every operator uses that concept, and most of them, especially the smaller boutique ones, need for alcohol to be served throughout the theater for their concept to work."

Parrack said those concepts vary from high-end affairs to others more suited for middle class patrons.

He predicted all of them will be well-received in the Oklahoma City market, noting there will be opportunities for them to move into areas where residents don't have good choices in movie theaters currently.

"That could hurt those who haven't kept up with the quality of experience and food service."

Finally, Parrack said Oklahoma will change its state law to allow those concepts in.

"If not this time, soon."

What will that mean for everyone else?

Stilley said, "the existing movie theaters, they will all convert as soon as the alcohol is approved, or they will close."

"The winner is the customer."

What happens to existing theaters as new ones look to call OKC area home? (2024)

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