Can You See a Drive in Movie From the Back Seat

Start a drive-in movie theater by following these 10 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your drive-in movie theater. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?
• What will you name your business?

Luckily we have done a lot of this research for you.

What are the costs involved in opening a drive-in movie theater?

You will need about 10 to 14 acres of land ready to be developed or you may find an abandoned drive-in up for sale. You won't be able to use old projection equipment, as the industry switched to a digital platform in the last decade. Expect to invest between $250,000 and a million to develop the property including building a projection house, concession stand, sound system, and playground.

How many acres do I need to lease or buy? The typical drive-in theater requires between 10-14 acres of land. This should allow up to 500 cars to park at your theater. You will also need to consider the space required to funnel cars off the road and through the box office. Some localities have zoning requirements in place to prevent traffic from building up along the road or highway leading into the theater.

What kind of projector do I need? Because most film studios have begun releasing movies exclusively in digital format, digital projectors have become essential to successful drive-in theaters. This will be one of your larger expenses, as digital projectors typically cost between $75,000 and $150,000 per screen and must be professionally installed and calibrated. Barco, Christie, and NEC are the three main cinema projector manufacturers today. Because not all old movies are available in digital format, if you plan to show classic movies you may also want to purchase a 35mm projector. You can often find these used.

How much is a projector screen? A quality projector screen for your drive-in theater can cost anywhere from $50,000 to $250,000 depending on your area and the specific local requirements. Most screens are made of steel and anchored in concrete. You will generally need to have a screen professionally constructed and installed to meet wind-load requirements.

How do I get an FM station to play the audio? The most common way to handle audio in a drive-in theater is use of an FM radio transmitter. To use this system you must select an FM frequency not in use and plug your FM transmitter into your projector's audio output. This allows you to deliver film audio to patrons through their car radios. You will also need to have a supply of portable radios to rent out to those unable to receive sound through their car radios. You will need a different radio frequency for each screen. To remain FCC compliant, you will need to purchase a Part 15 FM transmitter.

What are the ongoing expenses for a drive-in movie theater?

Your payroll will be a major expenditure. Film rentals are a controllable expense as you can opt for second run flicks at a much lower rate. You will be placing weekly orders for concession supplies. Lot maintenance will also take up a large chunk of your expense spreadsheet.

How much does it cost to license a new film? The cost to license a new film will vary from film to film. The licensing fee is typically paid as a percentage of total ticket sales, with a minimum flat fee required. It will typically be around 50%, but big name new releases will often fall on the higher end during opening days or weeks with the fee gradually reducing over the life of the theater run.

How much does it cost to license a classic film? The cost to license a classic film will also vary depending on the specific movie, but will generally be lower than new releases. Second-run and classic movies can be a good option for drive-in theaters as they are often easier to obtain than new releases. However, you must take into account the level of demand in your area and how profitable older movies will be, even in the face of lower licensing fees.

How do I get the license to show films? Movie theaters obtain licenses to show films through film distributors. Because this process can be complex, it's best to hire a booking agent to assist you in the early days of running your theater. Over time, you may choose to take this responsibility on yourself. As a small theater, booking new releases can be difficult. This is because many studios place specific requirements on leasing their films to theaters. Often, a new release will only be leased to a theater that can play the film seven days a week. If your drive-in is not open every day or has only one screen, it can be difficult to meet these requirements. Additionally, if you are located in close proximity to an indoor theater, these theaters will typically get priority because they can run the films day and night.

Who is the target market?

Your preferred customers will be someone looking for an old fashioned moviegoing experience. Drive-in movies reached peak popularity in the 1950s and 1960s. Therefore, many of your customers will be seeking a sense of nostalgia for entertainment in those times. Tailoring the theme of your theater and decor to such a historical period can help satisfy the wants and needs of your customers.

How does a drive-in movie theater make money?

You bring in income by selling tickets to your films and through the sales of concession products. Most of your profit is generated through food and drink sales as film distributors take a serious portion of ticket sales for new films.

How would I manage ticket sales? Your specific box office set up will depend on your location. You may choose to sell from a single window or set up several entry lanes to manage more traffic. Some theaters even utilize carhops to come window to window selling tickets. Although many older theaters maintain a cash-only system, today many film distribution companies require electronic sales to accurately record ticket sales and revenue.

Do I charge by vehicle, or by person? Movie studios require a per person admission price for new movies. However, you may consider holding per car specials on classic movie runs during slow periods.

How much can you charge customers?

The average ticket price per person is about $10 a piece, with discounted rates for children and seniors. You may wish to offer a car-load price of $30 to $40. Concession items will be sold for a price of between $4 and $10. If you are offering alcohol and a full menu, expect to be charging $12-$20.

Can you set up deals with local restaurants to deliver to parked cars? Although it may be possible to set up an agreement with local restaurants to service your movie goers, it may not be cost-effective. Because concessions will make up such a large portion of your theater profits, it can be counter productive to give such a large share of these profits to outside businesses.

How much profit can a drive-in movie theater make?

You may be making as little as 10% of each ticket sold when you are showing new releases during the summer blockbuster season. Concession items offer profit of 50 to 80%, but your operational expenses will eat into all those extra dollars. If you are selling out all season long, you could see a total profit of $100,000 to $150,000.

How can you make your business more profitable?

The key to success is filling up your drive-in every time you open the gates. Running obscure or old movies that don't bring in customers might be fun, but not profitable. New trends for the movie industry focus on offering premium services for regular customers over offering bargain tickets to increase the profit for every carload that buys admission.

What will you name your business?

Choosing the right name is important and challenging. If you don't already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Drive-In Movie Theater Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your drive-in movie theater is sued.

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

Small Business Taxes

Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).

You can learn more about small business taxes in these guides:

• LLC Taxes
• Sole Proprietorship vs LLC
• LLC vs Corporation
• LLC vs S Corp
• How to Start an S Corp

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

• This separates your personal assets from your company's assets, which is necessary for personal asset protection.
• It also makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Open net-30 accounts

When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.

Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.

Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.

Get a business credit card

• This helps you separate personal and business expenses by putting your business' expenses all in one place.
• It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a drive-in movie business. Learn more about licensing requirements in your state by visiting SBA's reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

• Check with your town, city or county clerk's office
• Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources .

Does this business violate any sound regulations? Although FM radio transmission has significantly lowered the overall ambient noise coming from drive-in theaters, hosting a large number of people in their vehicles can still produce a good deal of noise. Noise ordinances will vary significantly from place to place, so you will need to check your specific location for any applicable regulations. It is also important to keep in mind that even if there are no restrictions in place now, if your theater does produce disturbing noise levels you may be faced with new ordinances in the future. This is especially true if your theater is in close proximity to residential housing.

How can I get a license with Pepsi or Coke to provide soda? To serve Pepsi or Coke products at your theater you will need to make a distribution agreement with one of these companies. To begin the process, visit either Coke Solutions or Pepsico Partner to submit a request to serve their products. Somebody from the company will be in touch with you to develop a contract. You should consider contacting both companies to see which offers you a better deal.

Do I need licenses to serve food? Any business that serves food is required to carry a food service license. The specifics of this requirement will vary by state. Often the cost will be dependent upon your specific business and how many people you plan to serve. Check with your local business authority for the requirements in your state.

Can I serve alcoholic beverages? Although alcohol sales are becoming more popular at movie theaters, this issue is more complicated when it comes to drive-ins. The majority of drive-in theaters prohibit guests from bringing alcohol and do not sell it. Those theaters that do offer alcohol at their concession stands typically require that it be consumed within the concession or bar area. If you would like to serve alcohol at your theater you will need to obtain a liquor license that allows you to serve alcohol outdoors.

How many bathrooms do I need? Restroom requirements vary by state, but most are based on the customer capacity you carry. For example, you may be required to have one bathroom for every 40 guests. Be sure to check the specific requirements in your area, including those concerning handicap accessible restrooms. There are also restroom requirements when it comes to employees. For example, OSHA requires businesses with 16 or fewer employees to have one restroom for its staff.

Can I just have one entrance and exit, or is that a fire hazard? Specific exit requirements will depend on the local zoning laws in your state or community. Many require at least two exit points.

Certificate of Occupancy

A drive-in movie business is generally run out of a large lot. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord's responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a drive-in business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business' location to ensure your drive-in movie business will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company's financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you're unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it's a great place to start for your business.

Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers' Compensation Insurance. If your business will have employees, it's a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a drive-in movie theater

It's a good idea to develop a website that is updated on a weekly basis that talks about the latest releases, offers trailers, lists menu options, and perhaps offers online ticket sales. You will need to make sure that your theater is listed on major online ticket outlets like Fandango and Movietickets.com. Spread the news about the new location by participating in local festivals, fairs, and conventions. You may wish to sponsor local arts and food fests, as well.

How to keep customers coming back

With so many options available for watching movies, you need to offer a unique experience. Some drive-ins now offer beer, wine, and even fine food options. The latest in projection and sound often attract avid movie-goers. Families will appreciate bounce houses or supervised play areas to allow Mom and Dad to enjoy the show without having to constantly keep an eye on the kids.

Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it's out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn't delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That's not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We've reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2021 to find the best phone service for your small business.

Recommended Business Phone Service: Nextiva

Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Can You See a Drive in Movie From the Back Seat

Source: https://howtostartanllc.com/business-ideas/drive-in-movie

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