Deadline broke major news on Thursday that Alamo Drafthouse, the dine-in movie theatre chain with 41 locations across 13 states, has put itself up for sale. Studio sources reported to Deadline that over the last few months, Alamo executives have pitched various studios on the potential value of owning the well-regarded, boutique exhibitor. There is no indication of serious interest from studios at this point.
Alamo Drafthouse has been one of the biggest success stories for exhibitors in the post-pandemic era. The circuit has had success with its “dine-in” movie theatre model, providing customers with a wide selection of beer, wine, and cocktails and choices from a full menu that includes pizza, burgers, salads, and sweets. Alamo Drafthouse has also differentiated itself by featuring specialized programming that caters to cinephiles, adding art house independent films and classics alongside mainstream studio releases.
It frequently hosts live Q&As at their NYC and LA locations with filmmakers and stars of the films that it screens. As one example, “Beau is Afraid” premiered last spring at Alamo’s Downtown Brooklyn location and the screening featured a live Q&A with director Ari Aster, moderated by Emma Stone. By marrying the two elements of a well-run dine-in experience with programming catered to cinephiles, Alamo has consistently outpaced the average box office grosses and revenue per patron of the industry.
Given this success, it seems to be interesting timing for Alamo to begin the process of finding a new owner. On the other hand, Alamo Drafthouse does have a few unique challenges to contend with. Its locations are relatively expensive to operate, requiring a large staff to make the magic happen. These costs may increase over time as some locations have taken steps to form a labor union, with well-publicized campaigns to unionize their locations in NYC and Colorado. Perhaps, management is looking to find a new home before the cost curve escalates.
But the real question is whether interested buyers will step up and step in to continue Alamo’s mission of “providing good food, good beer, and good film, all at the same place!”