Thursday, December 15, 2011

VIP Buyer Interview: Capitalizing On Impulse

by KELLI FONTENOT
Published November/December 2011 by Candy & Snack TODAY

Taking a new approach to merchandising at the movies, AMC Theatres’ George Patterson is working to put the focus on candy and snacks’ impulse appeal in the chain’s concession areas. 

CANDY MAKES UP approximately 20 percent of the total product mix at concessions in AMC Entertainment, Inc.’s 357 domestic AMC Theatres locations, according to George Patterson, senior vice-president of food and beverage. And considering the mix includes popcorn, snacks, hot foods, soft drinks and even alcohol in some locations, sales of confectionery make a significant contribution to the overall bottom line. Because of this, he says the movie theater chain has been testing a new approach to merchandising for the past two years to focus more on products’ impulse appeal.

“We are redesigning our concession stands so the guest can be in charge,” he tells Candy & Snack TODAY. “At new locations and remodels we’re building today, consumers are able to grab as much candy as they want, bring it to the checkout area and pay for it. Previously, we would reach under the counter and hand it to the customer.”

Straying from the traditional format, where theater boxes are displayed in glass cases and on menu boards, the company has introduced Marketplace, an upscale concession area concept. Designed for theaters with differing layouts, the revamped area allows consumers to walk through an open space and grab their own popcorn, food, beverages, and candy displayed at kiosks and on designated shelf space.

“Instead of a concessionaire or the film crew member doing everything during the transaction, the guest now has more control. We are beginning to see some benefits from that,” Patterson explains. “When the guest is in charge, they buy more candy.”