Business model: drive-in cinema

Inhaltsverzeichnis

1 Business idea

2 How to make money?

3 What are the costs?

4 Which target group should be reached?

5 Marketing

1 Business idea

The concept is about a realisation of a traditional drive-in cinema in the agglomeration of Braunschweig/Hanover and to give the guests the chance to see the latest films or to reminisce with the best classic films. The attendents should experience car romance and another way of watching movies. As a special feature you can enjoy your favorite movie in your chosen classic car, like for example a Ford Mustang or a Volkswagen Beetle.

The technical realisation will work via a projector and a silver screen to show the film and the audio track will get transmitted via radio frequency.

If guests want something to drink or to eat they can order it by giving a sign with a lolling flag at the car like it is typical to see during world championships in football.

The place of location for a drive-in could be any small town in the agglomeration of Braunschweig/Hanover like for example Lehrte, Peine or Sehnde. Those cities are close situated to the national highway Autobahn A2 and for this reason they have a good transport connection for potential visitors.

The drive-in season will be from april until october – in these seven months the volume of sales should break even.

In an ambit of more than 250 kilometres there is no other competing drive-in cinema (look at image 1) – that is which makes this idea so special. The competitors are conventional cinema theatres, bowling centers, DVD- or BluRay-lenders and other well-known leisure facilities.

illustration not visible in this excerpt

(image 1: drive-in cinemas in Germany – own illustration)

2 How to make money?

Income can be generated by selling access, drinks and food, food for barbecue, etc. . Radios and blankets could be lend by a low price and during the day when it is not possible to show films the big place could be used for jumble sale which brings down money for stall rent.

Furthermore drive-in land area could be used as advertising space for sponsors as well as the radio frequency or the silver screen before the beginning of the film.

Calculation:

- income (per day):
- 70 cars (1/3 – use to capacity of parking positions [200 in total]) à 2 persons (10€ for admission) = 140 persons x 10€ = 1.400€
- Income of selling drinks and snacks = circa 100€
- loan transactions = circa 20€
- food and items for barbecue = circa 20€
- money of sponsors = circa 15.000€ p.a.
- Income of jumble sale stall rents = circa 1.000€ p.a.

30 days (per month) x circa 1.540€ = circa 46.200€ per month x 7 months = circa 323.400€ p.a. income + money of sponsors + income of jumble sale stall rents = circa 339.400€ p.a. income (without taxes)

In combination with chapter 3 this calculation should show how relatively easy it is to cover the expenses. But of course this calculation is not detailed enough.

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