With concession sales representing a significant proportion of cinema revenue, stock management has always been a key operational process that underpins a cinema’s bottom line. Industry numbers continue to show that the lion’s share of net exhibitor profits depend directly on purchases at the concessions stand. The explosion of the in-house food and beverage service over recent years also marks the increasing reliance on consumables and hospitality for business growth.
Even as inventory serves as a lynchpin of circuit profitability in this environment, stock loss or shrinkage rates in many markets remain high at around 1% to 3% of sales. Protecting your assets from wastage and loss relies on accurate, timely accounts of stock levels for every product at each cinema. Yet from an operational perspective, the stocktaking process remains largely reliant on slow, paper-based data entry, preventing cinemas from achieving from easy wins in revenue management.