The American Business Journal: Cobb Theaters

Cobb Theaters
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admin on 26 November, 2009 12:07:00
 
Robert Cobb practically grew up in the movie the­atre industry. He started
working in his father’s theatres at the age of seven. Like the other
larger circuits, Cobb Theatres itself was formed in the 1920s, as it prospered
and evolved over the years. During that time, there were many changes in the
industry, from drive-ins to the big single-and double-screen auditoriums and
multiplex era. Still, Cobb continued to work in the business, gaining expertise
in corporate finance, real estate develop­ment, advertising and accounting.
Headquartered in Birmingham, AB, Cobb Theatres grew to become one of the largest
circuits in the state of Florida and southeastern U.S. When Cobb himself took on
a leadership role as president in 1992, he oversaw a $200-million merger with
Regal Entertainment.
Strategic decisions kept business going during tough times
After the mid-1990s, however, the industry changed quite a bit. “I think
Cobb noticed people were build­ing stadium-seated theatres and they were
getting into trouble. Cobb was proud his theatres weren’t among them; they
had foresight to sell the com­pany,” tells Jeremy Welman, chief
operations officer at Cobb Theatres. “He slowly got back in the movie
theatre chains, many of which had started to experi­ence troubles; several
landlords contacted Mr. Cobb and asked if he’d willing to build a
location, or take over a location because of the troubled industry,” says
Welman. In 2000, Cobb decided to re-enter the movie theatre industry by forming
Cobb Theatres III, LLC. It started in Miami, Florida, which attracts 1.4 million
visitors, which still does well today.
Tapping into new segment with the red carpet treatment
No doubt the movie theatre business is a competi­tive industry.
Nevertheless, Cobb Theatres has be­come a dominant player in the market by
adapting to the changes in technology and market demands. Through strategic
acquisitions and mergers over the years, Cobb Theatres has grown steadily to
over 11 locations with 166 screens. “We now have 193 screens in 14
locations, and counting,” says Welman. But what makes this cinema business
stand out in the theatre crowd is its diverse reach to the mul­tiple
segments of the market. In fact, Cobb is not the typical cookie-cutter theatre
chain. “We’ve got different models for different markets,”
says Wel­man. “In one market, dinner and movie is one way, but in a
different market in can be a completely different experience. A slice of pizza
at the conces­sion station is different for one group than, say, somebody
who opts to dine over scallops and Scot­tish salmon with a choice of
wine,” says Welman.
Adding value to the steadfast, ‘dinner and movie’ model
He is referring to Cobb’s newest brand, CinéBis­tro, a
movie-bistro concept, which was launched recently. “[CinéBistro] is
a cinema design for a more discerning movie-goer, a more mature audi­ence
who love film but they also got accustomed to watching them at home,”
explains Welman. Enhancing the typical dinner and movie experi­ence,
CinéBistro offers a, one-stop shop with 100 percent reserve-seating via
online, valet parking, even a liquor licensed restaurant service, in the cinema.
“Once you are in your reserved seat, we have waiter-service in the
auditorium and full-chef driven menu, order taken wirelessly; they have a
cocktail, beer or bottle of wine. It is a high-level service, 21 years and over,
and it is just a different experience for those who want to pay a little more
(about $US17). Last month, Cobb has rolled out the carpet for its premiere
screenings at its new location in High Park, Tampa, Florida, with four more
launches planned for the future. “There’s a pre-screening of
CinéBistro in the cen­ter of Dale village in the state of
Colorado,” says Welman, adding the $350 million cinema proj­ect is
what the town has long been waiting for. “We’re going to give them
the coolest, sexiest little three-screen theater that anyone has seen.
It’s going to be cute,” he says with a laugh.
Right now, the real estate industry is a mess, as is, of course, the economy.
Even still, Cobb is moving forward and upward with its strate­gic plan to
acquire new projects from develop­ers to diversify into new and existing
markets. “It’s funny, you know, in the States this [dinner and a
movie idea] is a fairly new concept. But in Europe, Asia and to a certain extent
Cana­da and South America, there are variations of the model that have been
around for 10 to 20 years,” says Welmans. After analyzing the mar­ket,
Cobbs decided to differentiate itself with a fully-integrated, high-quality
restaurant and bar in the theatre. “We’re trying to present options
that attract everyone from teenagers to single adults, and even Mom and
Dad,” says Welman.
‘Alternative content is where the biggest opportunity is’
Outside of its core business, Cobb Theatres is becoming known for having a
better stream of independent films. “Because we have the abil­ity with
our digital projection capabilities to broadcast content from anywhere, it opens
the door for cultural, corporate and organizational events. It kind of puts us
in the same category as a hotel or conference center, on a very differ­ent
yet, intimate scale,” adds Welman. Each one of these complexes, true to
the Cobb Theatre’s mission, will be a place where movie-lovers and their
families can enjoy the movies they love in the best possible entertainment
venues.
http://www.cobbtheatres.com/default.asp
COMPANY HISTORY – TIMELINE
1921 Jefferson A. Richards, grandfather of R. C. Cobb opens
the family’s first movie theatre in Fayette, Alabama
1947 R. C. Cobb purchases two theatres from his mother
and begins building indoor and drive-in theatres
across north Alabama
1963 Cobb Theatres opens Atlanta Thunderbird Drive-In,
the largest (1280 cars), most modern drive-in movie
theatre in the South
1965 The company now operates 27 theatres 1966 Eight additional theatres are
purchased in Birmingham,
Alabama and offices are moved from Fayette
to Birmingham
1971 Foreseeing the demand for movie choices, R. C. Cobb
builds the first ever four-plex theatre in the United States
1978 R. C. Cobb opens Cinema City 8 in the Roebuck Shopping Center in Birmingham
– the largest eight-plex facility
in the nation – setting a development trend that
prevails today
1991 The Sawgrass 18 opens and becomes the largest theatre east of the Rocky
Mountains
1992 Cobb Theatres purchases General Cinema theatres
in Tampa, St. Petersburg, and Sarasota, Florida
1994 The Company acquires Wometco Theatres chain in
South Florida, bringing the total Cobb screens to 315
1996 Cobb Theatres grows to 643 screens
1997 Accomplishes a $200 million merger with
Regal Entertainment
2000 Cobb Theatres III, LLC is formed
2001 The Dolphin 19 opens in Miami attracting
1.4 million visitors
2006 Through strategic acquisitions and new building,
Cobb grows to 11 locations with 166 screens
2008 Launches CineBistro premium movie experience