Paver of Yellow Brick Roads
Ted
Management, Marketing, Concepts, Core Principles and Philosophy
1. Content Still Drives the Industry
As Sam Goldwyn observed nearly a century ago, "There is nothing ever wrong with this industry that a good movie won't fix." That observation remains true today.
2. The Biggest Expense is an Empty Seat
Exhibitors do not make movies; they sell tickets. Bulthaup believes a cinema's greatest expense is an empty seat, and every business decision should be evaluated through that lens. While some theaters benefit from stronger locations than others, most exhibitors rely almost entirely on studio content and a handful of standard marketing basics. Few take meaningful additional steps to maximize attendance.
3. Create an Unforgettable Experience Well Worth Remembering
"Hollywood-class" cinemas brand generates excitement, satisfaction, and lasting memories that far exceeds traditional cinema. The original Hollywood class cinemas were the preeminent examples for providing a truly distinctive multifaceted experience - the most reliable path to exceptional success.
4. Quality is not enough
Quality isn’t job one. Being totally eff’n amazing is job one. The goal is to create a facility and experience that is genuinely extraordinary.
5. Word of Mouth Remains the Most Powerful Advertising if You Have a Message Worth Delivering
Word of mouth continues to be the most effective form of marketing. Social media amplifies the frequency and reach of those communications by allowing every customer to become a broadcaster. Entertainment provides the ideal catalyst for those communications.
6. The Theater Itself Is a Major Marketing Asset
Giving each auditorium a unique color scheme, decorative theme, and personality is far more than traditional designs.
In a Hollywood-class operation, the theater's appearance functions as a permanent marketing investment. Unlike traditional advertising, which disappears after a single impression; themed environments continually generate conversation, recommendations, photographs, and social-media sharing. In that context, every dollar invested continues producing individual impacts with each visit that has value for years.
7. Memorable Experiences Create Exponential Growth
In this context, repeated visits for standard movies, special promotions and exposure to celebrity events generates continuous and varied fresh word of mouth. Word of mouth multiplies exponentially over time with social media – and that creates and maintains a high profile “iconic” status that cannot be replicated with traditional multiplexes. In turn, this greatly increases the frequency of visits and significantly expands the territory from which those visits are made far beyond the traditional boundaries of generic cinemas.
8. The Value Guarantee
There is a relatively common feeling in this industry that no matter how much a patron likes a particular movie – they did not get their monies worth on some level. Conversely, with Hollywood class operations, no matter how bad a patron might believe their movie was – they still had a great time (aka got monies worth).
Hollywood Class theaters form and functions act as a guarantee to patrons that they are going to have a memorable visit, they are somewhere unique and so special that they will have a positive experience. Hollywood-class theaters reverse that equation. Even when patrons dislike the movie itself, they still leave feeling they had a great experience. The theater's atmosphere, service, food, and uniqueness ensure that guests feel they received value, regardless of the film.
The venue itself becomes a guarantee that visitors will have a great time that they will long
remember.
The Proof Is in the Outcome
The Hollywood class cinemas were widely believed to generate the highest per-capita, per-auditorium, and per-screening revenues of any cinemas in the country.
Traditional theater chains would generally grow by seeking new green pastures to raise their sheep. Hollywood-class theaters growth plan was to eat their sheep while growing a bigger pasture
In some years, Hollywood Blvd attracted more moviegoers than the number of fans attending Chicago Bears home games at Soldier Field.
Hollywood Blvd opened with four auditoriums and added two more the following year by dividing a single unused auditorium, bringing the total to six. Within six months of its opening, the eight-screen Loews Theater directly across the street closed. Within two years, a well-established 22-screen AMC located less than three miles away at the intersection of two major expressways also closed.
Hollywood Blvd subsequently expanded to ten screens seating a total of more than 1,200 patrons plus a Chinese restaurant by moving out four adjacent retailers. That expansion also doubled the size of main lobby and its bar seating, and more than doubled the box office lobby while adding more washrooms and a small private party room.
Hollywood Palms opened with seven screens. Less than three miles to the north stood the 30-screen AMC Cantera, long regarded as one of Illinois' top-performing cinemas. Within two months of Palms opening, AMC began operating a large flatbed truck with double-sided upright billboards up and down the same north-south corridor past Palms, even looping through the Palms parking lot from noon until midnight, seven days a week. Within the year, AMC permanently closed one entire wing of that theater, reducing its screen count from 30 to 18. The vacant wing was simply walled off with unfinished plywood.
Sysco assigned one of its most senior sales representatives exclusively to the Hollywood Palms and Hollywood Blvd accounts. It was not unusual for Sysco to deliver two refrigerated semi-trailers of food to supply a single weekends crowd. The Boulevard was selling as many as 40,000 pizzas annually.
Hollywood Bar & Filmworks opened in downtown Indianapolis in October 1991 with only 2 auditoriums containing a total of 300 seats, later adding a 65-seat auditorium on the next level. Despite its modest size, Filmworks sold more chicken wings than any other establishment in the county and more ice cream than any non-institutional seller in the county.
All three theaters benefited from the best discount level the company allowed for (the same as “Lettuce Entertain You” restaurants here in Chicagoland).
Significant discounts are also available for large-volume purchases of beer and liquor. For example, Hollywood Palms and Hollywood Blvd routinely took advantage of an annual two-for-one case promotion for Cuervo tequila, (purchasing at least 100 cases and receiving another 100 at no charge). Those 200 cases were generally sufficient for the entire year, even though the theaters offered eight additional tequila brands.
The Application of a Key Concept: The Physical Theaters
Bulthaup vividly remembers the special occasions when his grandparents took him to the remaining single-screen Indianapolis movie palaces. In those theaters, the escape from everyday life began the moment patrons crossed the threshold. The grandeur of each unique venue, combined with the passion of its owner-showman, enhanced every film shown on the screen.
The rise of the multiplex changed that experience. As theaters increasingly showed the same limited selection of films, competition became driven primarily by convenience—the location and showtimes. Aside from total seating capacity, one auditorium became largely indistinguishable from the others, and one chain's theaters looked much like its competitors. Any differences were limited to minor variations in concessions, pricing, a few amenities or the latest industry trend. One Michigan chain put out after-popcorn mints as patrons left for the parking lot. WOW!
Bulthaup sought to restore the anticipation, wonder, and excitement once associated with the great movie palaces of yesteryear. Each location maintained a distinct overarching identity while remaining true to the common concept. Hollywood Blvd and Hollywood Palms were both cinema, bar, and eatery destinations, yet each possessed its own character.
Every auditorium featured a unique color scheme, decorative theme and personality. Themes ranged from individual movies like The Wizard of Oz and Casablanca, to tributes to the Silver Screen, classic animation and the Academy Awards; and immersive environments such as Egypt, China, a tropical jungle, or the deep blue sea. The resulting impact far exceeds the actual comparative cost of the décor. More importantly, the facility creates excitement and encourages repeat visits in a way traditional multiplexes just cannot achieve.
How many patrons would describe a typical multiplex as a "movie palace," much less a designation as an iconic destination, no matter how modern or well-maintained that multiplex may be? As pointed out, the Indianapolis operation was described by the major monthly magazine as the crown jewel of Indy’s nightlife.
It is difficult to believe that features such as heated seats represent meaningful competitive advantages. Few people go to work the next day exhorting the comforts of their hot seat. They will always talk about spectacular spaces and memorable experiences. Bulthaup recalls one older woman who asked what film was showing in the Blue Auditorium. The film was a teenage slasher film that she really did not want to see – but bought the ticket for Blue anyway as it was the only auditorium she had not seen a movie.
A study group asked incoming repeat patrons what they liked most about Hollywood Palms and 80% said the way it looks. Bulthaup believes they meant the whole package but the appearance is what they see with there own eyes.
In the Hollywood model, themed décor serves a purpose far beyond decoration. The form is the décor; the function is long-lasting marketing.
Traditional advertising—whether broadcast airtime or print space—often produces only a fleeting impression and rarely generates substantial word-of-mouth. Yet word-of-mouth remains the most powerful form of marketing in the age of social media. Themed auditoriums create memorable, high-impact experiences that people naturally want to discuss, photograph a selfie, and share with friends, family, colleagues, Yelp reviews and other online audiences.
Hollywood's value proposition extends beyond the film itself. How often do people discuss where they saw a movie as enthusiastically as they discuss the movie itself? Almost never. How often is a traditional theater chain mentioned in the same sentence as the film being discussed? Rarely.
Money invested thoughtfully and creatively in atmosphere continues to generate value long after the initial expenditure. Memorable experiences create lasting impressions, and those impressions become testimonials that have the power to grow audiences exponentially over time and keep them – back to the goal, filling more of the seats more of the time.
Hollywood Blvd and Hollywood Palms were unique from each other. Patrons routinely said, "I went to Hollywood Palms and saw X" or "I watched Z at Hollywood Blvd." The venue became part of the experience.
People do not merely like Hollywood Palms or Hollywood Blvd; they invariably clam they “love” them. Given the opportunity, patrons eagerly share exactly what they enjoy about the facilities, the atmosphere, the operation, and the menu. Filmworks once experimented with Three Stooges Fries. Steak fries (Moe Fries), sweet potato Larry Fries, and Curly Fries. One woman wrote she liked having three choices as sometimes she felt like Moe Fries, other times Larry Fries or Curly Fries.
Bulthaup does not simply create cinemas. He builds iconic movie palaces where the venue and the experience therein are as memorable as the films themselves. That creates energy—and energy translates into Moe money in the bank.
Marketing Philosophy
Bulthaup defines marketing as making a promise to the public. Operations' responsibility is to fulfill that promise. Once made, the promise must not be broken.
Traditional paid advertising is frowned upon absent being provided significant multiples of effective impressions by associated means. The entertainment industry uniquely makes social and mass media campaigns higher profile and so reduces the cost of a theaters largest expense, an empty seat.
The focus is to energize patrons by more than just supplying screen content. When that excitement reaches a “critical mass”; events, partnerships, and additional revenue opportunities naturally gravitate toward the theater. When opportunities begin finding you, instead of you looking for, or even paying for, opportunities; you know the venue has achieved market supremacy. At that point, economic synergies and shared momentum can generate substantially more profit at little or no additional cost. Few assets are more valuable than a reputation as the community's "go-to" destination.
Guerrilla marketing, direct contact and consistent word-of-mouth remain the most effective forms of customer acquisition and retention—second only to compelling film content.
Applying the economic principle of marginal analysis to determine the level of production (i.e. marketing to fill seats), allows for analysis and informed decisions about what level of effort should be devoted to further expanding audiences, diversifying demographics, and to increase the frequency of attendance over the long haul in an economical manner that maximizes profitability. The song remains the same: fill the most seats, the greatest number of times, while maximizing overall profit.
As long as the marginal revenue generated exceeds the costs of ongoing efforts, those efforts should generally be pursued. Some initiatives produce immediate results, while others build long-term growth and sustainability. Therefore, success should not be judged by the return on any one effort, but by the cumulative cause and effect of all efforts. Over time, the analysis becomes straightforward: the plus side consists of decreasing the number of empty seats and increasing revenue; the minus side consists of any direct costs.
Just as Disney is synonymous with spectacular movies and theme parks, and Colonel Sanders is associated with the tastiest finger-licking good “eats”, a Hollywood-class venue supersedes more traditional multiplexes to become the first and foremost cinema destination in its market. Revenue naturally follows market leadership. This is achievable—and Bulthaup has achieved it.
Indianapolis Case Study
When Hollywood Bar & Filmworks opened in downtown Indianapolis, residential development downtown was nil. The theater relied almost entirely on suburban customers willing to travel downtown despite having closer neighborhood options with free and plentiful parking.
The result was a classic case of "if you build it, they will come." They did, within three months customers arrived in overwhelming numbers. Located on the third floor primarily accessible by a single elevator, the theater routinely generated lines that wound through the lobby, down three flights of stairs, through the building entryway and hundreds of feet down the sidewalk.
The theater quickly became an icon and Indianapolis Magazine pronounced it the “crown jewel” of downtown nightlife. Bulthaup was struck by the number of foreign languages spoken by customers arriving each night. How did they know about Filmworks?
Bulthaup was shocked at how many foreign languages he was hearing when in the elevator with arriving customers. Hollywood did not allow kids to attend evening movies.
A Swedish grandmother visiting relatives in Indianapolis commented in her review she especially appreciated the opportunity to enjoy a movie without children in the audience - because she had 28 grandchildren and great-grandchildren back home and promised she would come see a movie whenever she came back to visit.
The Saudi Arabian mother of the American general manager of Indianapolis's Rock Bottom Restaurant would call from as soon as her plane came within range, asking him to check the Filmworks schedule for that evening.
A group of nuns from a suburban convent decided to see a flick after hearing so much about Filmworks. Despite its location in the entertainment district and the presence of a bar, Hollywood immediately became the only place they would see movies—and the only downtown destination they visited. The Mother Superior wrote:
"We love your place and take every opportunity to come with our friends. I pray always for the Lord to bless your business with success."
The Indianapolis Star later conducted a survey asking residents what was their favorite place to take out-of-town guests. The top responses were:
1. The annual Indianapolis 500-mile Race
2. The Indianapolis Children's Museum (the largest Children’s Museum in America)
3. Hollywood Bar & FilmworksType your paragraph here.
Given this visibility, notoriety and reputation contained in an entirely one-of-a kind venue offering a full menu of great food, beer, wine & cocktails – that’s money in the bank.
Audience Builders
Roof Mounted Search Lights
Permanent advertising searchlights have always been prohibited in Illinois where instead municipal permits are only issued for certain allowable events over a limited number of days, over a limited number of hours not to exceed two weeks per year. Bulthaup was able to obtain permits for use of up to three searchlights, 365 days a year, not to be operated past 10:00pm by a narrow enabling ordinance that otherwise excludes everyone else. at both the Woodridge and Naperville locations. First, these lights remind the area population that an exciting movie-going experience is nearby, especially during autumn and winter evening rush hours - and if a person is familiar with the lights being able to locate the theaters from evening passenger overflights.
Marketing efforts would include language about just follow the searchlights to the theaters front door. Second - energy. The anticipation starts before a patron even parks their car and the excitement grows as they approach the box office - a special night is unfolding. Those lights always add to a special luster to public and private events – and photographed for social media.
LED Theater Marquees
LED signage with changeable messages was just appearing in the marketplace and were precluded or prohibited, to Bulthaup's knowledge, everywhere in Illinois. Bulthaup obtained local enabling legislation and permits through the municipalities for oversized (up to 12 x 12 feet) LED monument signs including the ability to change messages no less than every five seconds.
The ability to make impressions with multiple messages on the occupants of 60,000 passing cars per day provides benefits surpassing even the standard rotation of "Now Showing" messages and gift card ticklers. Reminding the market that Hollywood is perfect for Christmas, Birthday and other parties, business meetings, sales presentations, lectures, award ceremonies, election night parties, congratulating a couple on their wedding which is about to take place inside, from something more mundane like now hiring kitchen staff to something totally unique like open auditions for "Who Wants to Be a Millionaire?" The marquees are worth the money facility rentals and gift card sales alone.
The Hollywood Movie Club
Each theater distributed a special 8½-by-5½-inch yellow form throughout the venue. One side contained a "How Was Your Visit?" questionnaire with a rating system. Timely customer feedback is essential for measuring whether the theater's marketing promises were being fulfilled. The comment form was more all-the-more likely to be completed because the reverse side provided a valuable customer benefit.
The other side served as an enrollment application for the Hollywood Movie Club. Patrons provided contact information, including their email address and birth date. Managers collected completed forms at the end of each shift, reviewed the comments, and forwarded the "Yellow" forms to the office, where day staff enrolled new members into the database. Bulthaup believed customers should have some "skin in the game" rather than signing up online and showing up at the last minute.
Members received a Birthday Pass by email that allowed up to twelve people to attend a movie free of charge Sunday through Thursday during the member's birthday month. The pass was valid for one evening only and could not be split across multiple visits. Enrollment had to occur before the member's birthday month; applications submitted during that month were not eligible until the following year. Guests who completed a form and requested free admission the same day were required to wait until the next cycle.
To redeem the Birthday Pass, the birthday guest had to be present with the group and provide photo identification showing it was their birthday month. As a cost-control measure, tickets were issued individually to each attendee rather than handing out all twelve tickets at once. This prevented the theater from having to pay film rental on tickets issued to people who never arrived.
Birthday Passes were emailed fifteen days before the start of the member's birthday month rather than on the first day. This gave members time to plan their celebration while creating a
sense of urgency. The benefit did not roll over into the following month. As Bulthaup often said, passes were "just like milk—once they expire, they ain't no good.
The broader objective was to transform every guest into an enthusiastic Hollywood ambassador within their network of family and friends. The Birthday person enjoyed the privilege of selecting the movie for the evening. The program encouraged a regular moviegoing habit and it was common for the guests to a birthday movie party to enroll themselves into the program. Over time, they would eventually celebrate their own birthdays at Hollywood, becoming additional ambassadors who introduced additional friends and family to the experience.
Through their personal recommendations and firsthand experiences, members promoted what Hollywood employees proudly described as "the best movie theater in the whole wide world.”
An often-overlooked benefit were the ongoing social media dialogs generated by this growing group of advocates. Their enthusiasm also helped promote gift card sales, special screenings, advance previews, celebrity appearances, private events, Christmas parties, employee appreciation nights, and large senior-group outings.
Analysis revealed that birthday groups typically spent more per person than a casual moviegoer. Many arrived early and gathered in the lobby bar before the film, purchasing rounds of drinks or pitchers to celebrate the occasion. After all, it was a birthday party.
The program's long-term value extended far beyond a single evening's attendance. It strengthened moviegoing habits, increased word-of-mouth marketing, and enhanced the theaters' visibility within the community. Does anyone host Netflix parties to celebrate birthdays in their home? I don’t think so.
Increased food and beverage revenue more than offsets the cost of those complimentary admissions. The program also drives attendance to films some guests might not have otherwise seen in theaters. By reaching into family and friend networks, the campaign put more people into more seats, more often, particularly on weekdays when many of those seats would have remained empty. That is found money.
Mass Customer Communications
Customers who join a movie club are typically among a theater's most loyal patrons, making it important to proactively share the upcoming week's film schedule. Surprisingly, many theaters take a reactive approach, simply posting schedules online and waiting for customers to seek them out. The difference between building moviegoing habits and doing nothing often comes down to proactive communication in the face of criminal laziness.
Bulthaup launched this concept in Indianapolis long before email became commonplace. At the time, Microsoft had just introduced Microsoft Fax Pro, which transmitted faxes over telephone lines but was limited to groups of 25 recipients. The primary constraint was the speed of recipients' fax machines on the uptake. As the movie club grew, Bulthaup commissioned custom software and installed a dedicated phone bank to handle the ever-increasing opportunities, which eventually exceeded 15,000 members. The program was highly innovative for its time and earned a NATO marketing award for the theater.
Four years after Hollywood Blvd opened, and shortly after Palms began operations, the combined customer database was growing so rapidly that it soon surpassed 187,000 patrons
Allied Advertising represented every major movie studio regarding the Chicago market. Historically, the studios allowed Allied to conduct promotional events only in downtown Chicago, where media outlets were concentrated, and only rarely in the suburbs.
Hollywood Blvd simply conducted their own events and marketing campaigns. Within a year, Allied had overcome studio resistance and shifted virtually all promotional support to Woodridge, including every advance screening. Other venues could not reach the more than 180,000 movie enthusiasts that Hollywood’s email broadcasts could at the touch of a button,
nor did they have street side marques announcing upcoming films or sneak previews to more than 60,000 drivers each day. These events frequently generated long lines, and tickets withheld until three hours before showtime to encourage patrons’ early arrival and the purchase food and beverages from the bar before the preview started.
Likewise, the Chicago Sun-Times selected Palms and Blvd as their exclusive venues for studio-sponsored promotions. These events were also provided at no cost to the theaters because of the value of and the unique promotional advantages only those two theaters brought to the partnership. Because the theaters jointly owned a limousine, advance screening tickets could also be offered as on-air as radio station prizes. A pair of winners could receive round-trip limousine transportation and treated to complimentary Hollywood dinners. AMC, Regal, and Cinemark could not provide these same advantages or create the same awareness or energy without a mechanism to build those symbiotic relationships to actively engage moviegoers.
Targeted Free Admission Campaigns
Hollywood-class theaters do not simply give away free tickets to fill seats. Such a practice is both unnecessary and counterproductive. Instead, they only distribute carefully structured complimentary passes to specific target audiences for redemption on nights when seats would otherwise remain empty.
All passes include language requiring the purchase of at least one food or beverage item per person, (although the requirement is rarely enforced). In practice, the gross profit from food and beverage sales consistently offsets any expense derived uncollected film rental that is due. revenue. Examples of these targeted campaigns include:
(a)xTeacher and First Responder Appreciation Passes
Each spring, a pass for two complimentary admissions is distributed to teachers at schools within a five-mile radius of the theater. Passes are placed directly in staff mailboxes during the first week of May, and are only valid in June, July & August. They may only be redeemed Sunday through Thursday, excluding a film's first full week of release.
Teachers frequently socialize in groups during their off-hours, making a theater that serves food and alcohol particularly more appealing. A single pass for two, combined with the word-of-mouth that pass generates, helps attract more educators to the theater more often. Teachers are also exposed to trailers promoting the summer release schedule, encouraging repeat visits. Anecdotal evidence suggests that while schools rarely if ever permit direct on-premise advertising materials other “freebees” – but a movie pass for two is very much appreciated. If they have fallen out of the movie-going habit -the pass is a reminder,
The program also helps build relationships that can lead to additional opportunities, most commonly field trips and auditorium rentals for educational presentations. It is surprising just how many field trips originate from downtown Chicago schools.
Nearly identical passes are distributed to first responders as a holiday gift. Those passes are issued around Christmas and may be redeemed only during the month of January, excluding Fridays and Saturdays.
(b) Superbowl Sundays
For those who have little interest in football, the marketing is simple: skip the Super Bowl and go to the movies.
On Super Bowl Sunday, movie admission is free on a first-come, first-served basis. Guests are encouraged to arrive early, and the promotion routinely generates more than $100,000 in gross revenue through food and beverage sales. While somewhat gimmicky, the public readily understands the concept. Because the promotion is limited to a single day each year, it does not diminish the perceived value of admission. Many patrons make it an annual tradition, returning every year specifically to avoid watching football. The email invitation alone generates substantial word-of-mouth discussion and awareness.
(c) Business Card Drawings
An old-fashioned promotion that continues to be effective is the business card drawing. A glass fishbowl with promotional signage is placed near the box office inviting guests to enter their business cards for a chance to win a "Hollywood Movie Party."
During slower periods of the year, tell some patrons they have won something, the winners may schedule a movie outing for up to eight people. Redemption is limited to the week following the drawing and is valid only on Tuesday, Wednesday, or Thursday. The one-food-or-beverage-item-per-person minimum purchase requirement remains in effect.
This promotion extends the theater's reach into local and regional workplaces, introduces the venue to potential new customers, and generates many of the same word-of-mouth benefits as other targeted admission campaigns – plus food and beverage income.
Celebrity Events
Celebrity appearances, cast reunions, and special screenings were among the most effective marketing tools used by the Hollywood theaters. Bulthaup regularly brought movie stars—both current and classic—to participate in one- to three-day events tied to their films. Similar to Comic Con and other autograph conventions, celebrities met fans at secured signing tables, charging for autographs and photo opportunities.
Guests are required to arrive two days before the event, one for travel and a second full day of media appearances. The events generated extensive coverage throughout Chicagoland and, in some cases, nationally and internationally.
Whenever possible, radio and print interviews were scheduled even before the celebrity arrived. This early publicity created buzz while leaving additional opportunities when the press schedule was crowded for in-person interviews during their actual visit. Many media outlets only rarely have access to movie stars and valued the opportunity. A particularly effective tactic was to record a short selfie video two to three weeks before the event in which the guest promoted the venue and schedule. The selfie was then transmitted through the theater’s email list and prominently placed on Hollywood’s website with the dates, where it was often copied and shared hundreds if not thousands of times. Sometime a selfie was attached to an email and transmitted to local target audiences. Example: A selfie from Zach Gordan, star of the Wimpy Kid movies based on the popular series of those books, was transmitted to nearby schools and libraries.
Celebrity Guests have been asked to do a second selfie announcing their arrival, often while still at the airport, to let customers know they just landed and encourage them to come to the theater. That selfie is promptly transmitted to media and Hollywood’s database. If there is some special stunt, like with a sports team (throwing out the first pitch at a Cubs game or dropping a hockey puck) that can be mentioned.
Then there is press day, consisting of four to six television interviews and a similar number of radio interviews. Often special opportunities present themselves such as throwing out the first pitch at a major league baseball game.
The theaters have never bought commercials or print ad space to advertise a celebrity event – attendance is driven by publicity supported by gorilla marketing.
Celebrity Economics
Rather than paying a flat appearance fee, Bulthaup typically guaranteed the celebrity a minimum amount of revenue from autograph and photo sales. If sales fell below the guarantee, the theater covered the difference; if sales exceeded the guarantee, the celebrity kept the additional proceeds. This structure incentivized guests to participate fully in promotional activities, media opportunities and spend as much time with the public during the signings.
Guarantees for top-tier talent have reached as much as $100,000 for three days, particularly when appearances coincide with the release of a new, highly-anticipated film. In other cases, there was no guarantee and guests simply retained whatever they earned from sales. Some events also served as fundraisers, with financial arrangements varying accordingly.
The theater covered round-trip first-class airfare, local transportation, hotel accommodations, and meals for the guest and their manager. Sponsoring hotels often offset lodging costs. Guests were typically treated to dinner at a high-end local restaurant at the conclusion of press day to relax after what was often a very hectic schedule. During the event meals from the Hollywood menu were provided. Because of the frequency of appearances, it eventually became more economical to purchase a used limousine and employ a staff driver.
Each fan wishing to meet a celebrity is required to purchase an individual “pass” for the associated film and have a color wrist band placed on their arm at the box office before they get in line. Passes only designate the celebrity and the film in a general way without assigning a specific seat, date, or showtime. A selection of 8 x 10 photos and sometimes other paraphernalia can be purchased for autographing at a table concurrently with having their wrist band removed just prior to meeting the guest. The pass can later be redeemed for a ticket at the box office for any screening of the featured title during the event, or any title showing at the theater within two weeks of purchasing the pass. Seating is on a first-come, first-served basis.
There are generally additional kitchen, security and usher hours for these events. Sometimes there is an opportunity cost when other movies are cancelled to open up auditoriums when additional seats are needed to accommodate large crowds attracted to the event.
By way of a hypothetical example with 1,000 fans attending each of a three-day event for a total of 3,000 patrons with tickets at $10:
Star Guest’s minimum guarantee $50,000
Airfare, limousines and incidentals $5,000
Payroll allocation for in-house marketing manager $2,500
Posters & Flyers $1,000
Total minimum direct cost $58,500
Generated autograph fees earned $75,000 (all goes to guest)
Net admissions income $5,000
Net food & beverage income $40,000
Total profit from 3 day event $36,500
Celebrity Examples
Several celebrity appearances evolved into annual traditions that consistently drew solid audiences and significant media attention.
For more than fifteen years, Bulthaup worked with the actress who played ZuZu in It's a Wonderful Life, hosting screenings during the weekend before Christmas. The event and showing the film on the big screen became an annual holiday tradition for thousands of families. Guests purchased signed DVDs, autographed books, collectible bells, and other memorabilia, often as Christmas gifts. The timing generated strong attendance and extensive holiday media coverage.
Similarly, Bulthaup developed friendships with the seven surviving actors who portrayed Munchkins in the 1939 classic, The Wizard of Oz. A vender of Oz merchandise opened a pop-up store in the theaters lobby. The 15 annual screenings of the Wizard of Oz each enjoyed the highest weekend attendance in the world for the Wizard of Oz. Kids loved meeting the group and getting their autographs and those screenings also became a family tradition for over 15 years.
The theaters also hosted annual horror-themed movie events the weekend before Halloween featuring notable guests such as Dan Aykroyd (Ghostbusters), Tippi Hedren (The Birds), Robert Englund (A Nightmare on Elm Street), and Linda Blair (The Exorcist). These screenings routinely attracted large crowds and extensive press coverage.
The theaters Jesus Christ Superstar cast reunion produced an exceptionally large turnout and potentially that could be developed for annual hosted screenings the weekend before each Easter. Possibly, The Passion of the Christ with Jesus (Jim Caviezel) could be part of that weekend as a secondary feature. Media especially likes events that are good story tie-ins with holidays
Among the many successful standard guaranteed minimum weekend appearances were William Shatner (guarantee of $75,000) for “Star Trek”, Burt Reynolds (guarantee of $30,000) with “Smokey and the Bandit”, ”Deliverance”, “Longest Yard”, and Richard Dreyfuss (guarantee of $30,000), with “Jaws”, “Mr. Hollands Opus” and “Close Encounters”.
Screenings with various actors from “Star Wars”, “Hunger Games”, “Twilight Saga”, Robert England with “Nightmare on Elm Street”, also had twelve-hour long lines stretching thousands of feet into the mall on each of three consecutive days.
Originally only five screenings were scheduled with Tony Curtis hosting “Some Like It Hot” which was AFI’s number 1 ranked comedy (guarantee of $15,000). The demand was so great fourteen auditoriums were filled and Tony made several more visits over the next few years. All were extraordinarily successful. Terri Gar appeared with “Tootsie” and “Young Frankenstein” the weekend before Halloween – she was being interviewed on the early evening ABC affiliate news and Blvd surprised her with Mel Brooks joining by satellite. The Senior Lender for Palms wanted to present a separate charity screening to raise money for fight against Muscular Sclerosis (which she suffered from) and $28,000 was raised.
Bulthaup booked Cindy Morgan (guarantee $5,000), who played Lacey Underall in Caddyshack and the female lead in “Tron”, for an entire weekend of signings. Caddyshack was heavily promoted in advance with a poster and flyers in every golf clubhouse within a ten-mile radius. Cindy did a ton of press and Blvd was packed for the screenings. One of the catch phrases promoted coming to see Caddyshack and Lacey Underall will sign their (golf) balls.
Bulthaup also brought the little girl who played Tabatha in the “Bewitched” television series for the opening weekend of the “Bewitched” movie. Erin Murphy also generated huge media coverage and Blvd had the highest attendance on opening weekend for that movie too. Her guarantee was $5000 which was easily exceeded.
The weekend that one of the Harry Potter films opened a large circus tent was placed in the parking lot to house a charity Easter Seals event with the actors who played the Weasley Twins. The excited young girls rushed the stage – the twins had to be hustled into the theater lobby and the doors were slammed and locked behind them. The Weasley twins were brought back for the next Potter instalment, with the final Potter hosted by actor who played “Draco” hosting.
The theaters have also presented some great cast reunions such as Westside Story, Oliver, Willie Wonka, MASH, A League of Their Own, the Poseidon Adventure, (Borgnine said they had not been together since the movie opened in 1972). A side deal with the Back to the Future cast reunion raised $58,000 for the Michael J. Fox Foundation
The reputation and appearance of the Hollywood-class operations made them a prime
site for studio provided Movie Stars tied to a upcoming film release, although those are always one day events. The Star is free but there is only an opportunity for several hundred viewers to sell food and beverage too.
Paul Riser made a movie called “That Thing About My Folks” which co-starred Peter Falk. Blvd had agreed to host a daytime screening for Oprah’s entire studio audience after Peter & Paul had been interviewed on her show. The audience was then bused out to Blvd for the screening. Jennifer Hudson hosted an advance screening of “Dreamgirls” the week before it opened. The theaters were the venue of choice for all National Lampoon releases, notably Paris Hilton in “Pledge This” when her television show was at its peak. David Carradine was a friend of Bulthaup’s and brought in another National Lampoon film. Johnny Knoxville in his “Jack Ass” film was another fine example.
These one-nighter events were at no charge but received tremendous exposure from media with large numbers of fans getting a once in a lifetime experience they will always remember, (and never forget).
Free talent: Aykroyd has a branded vodka (Crystal Head) and the liquor salespeople told him so much about the theater he wanted to see it for himself – instead of a quick tour he and Bulthaup spent several hours and became fast friends. When he was autographing a black and white picture on Hollywood Palms wall (seen here), he asked if Steven had seen this?!!!!
Guess which Steven he was referring too.
Dan was the voice, did tons of press for the theaters and then hosted screenings of the live action film Yogi Bear for the entire opening weekend of that film at no cost – he just wanted to be involved. (He claims Justin Timberlake channels BooBoo.) The only appearance Aykroyd made for the 30th Anniversary of the Blues Brothers were a full weekend at the Hollywoods. Aykroyd also hosted a weekend with Ghostbusters, including additional day of press for each. The Chinese have a television crew based on the East coast and they flew in and taped a pretty long interview with Dan. That does not sell tickets but does lend credibility to the operations.
Not all successful appearances required guaranteed compensation. Dan Aykroyd became a strong supporter of the theaters after visiting them through a connection with Crystal Head Vodka. He hosted screenings of Yogi Bear, participated in extensive media interviews, and later returned for Ghostbusters and The Blues Brothers anniversary events. His enthusiasm generated national and even international attention, including coverage by a Chinese television crew that traveled to Chicago specifically to interview him. ADVOCATE
Aykroyd and Bulthaup were once having lunch just off Santa Monica Blvd and the beach, Rob Reiner and Morgan Freeman came in and Dan immediately went over and invited them to join us. As usual, Dan was going on and on about the theaters and an embarrassed Bulthaup interrupted, explaining to Mr. Reiner that the theaters had hosted some of his films just the weekend before, “Goonies” “Lost Boy” and “Stand by Me”. Reiner chimed in shaking his finger at Bulthaup, “You’re the guy, you’re the guy – Corey called and told me all about you”.
The theaters frequently benefited from word-of-mouth endorsements within the entertainment industry. Conversations with Aykroyd led to introductions to actors such as Rob Reiner and Morgan Freeman, while other performers—including Gary Sinise, Jane Russell, and Larry Hagman—visited after hearing about the theaters from friends and colleagues.
Corey Feldman (guarantee $15,000) had hosted those movies and Bulthaup had no idea Feldman would call anybody those screenings, it’s a small world. They had been talking about Freeman taking the lead roll in “The Magic of Belle Isle” and mentioned they were in talks with Virginia Madsen for the female lead. I told them her brother Michael Madsen was one of my best friends, and I would keep an eye out for the release date and try to put something together in Chicago to hype the film’s opening, (which happened and Virginia spent the weekend).
Film Critic extraordinaire Roger Ebert had heard about the theaters from the Sun Times and one of his daughters lived near Blvd and would see her movies there. The Chicago Sun Times were so inspired by Blvd’s opening that for first time ever they gave a letter grade to every cinema in Chicagoland - with front page coverage of Hollywood Blvd as the only cinema to receive an A+ rating, no other operation exceeded a “B”. If Hollywood fit a readers poll category – it was always voted the best or first above the many. Roger came and did his first and only review of a movie theater after visiting Blvd– Two Thumbs Up. When Ebert heard the Hollywood Palms was about to open he asked about a signing for his new book in the lobby. Bulthaup already had Karen Allen coming in for an entire weekend of “Raiders of the Lost Ark” (guarantee $20,000) and they both sat in front of an auditorium for a Q & A.
The buzz about the theaters was so great the facility started to become destination for book signings in the lobby while an associated movie or episodes of the television show would be screened. Other book signings include Candance Bushnell with “Sex and the City”, Brad Garrett for “Everyone Loves Raymond”, Adrienne Barbeau with her autobiography “Swamp Thing” & “Maude”, and Jamie Leigh Curtis with her children’s books. Disney had been so impressed they asked Palms to hold a record album release party for Mitch Musso, (boyfriend in Hannah Montana).
Disney trusted Blvd early on and scheduled the worldwide live press conference for the second Pirates of the Caribbean movie. Lee Arenberg (Pintel, one of Captain Barbossa's crew), was in the theater with Johnny Depp joining by satellite.
At times, the theaters were also used to screen daily’s or private screenings when studios were filming in Chicago, most notably by Director Zach Snyder with “Superman Man of Steel”.
Gary Sinise does a big charity concert every year to benefit veterans and wanted to see them when he came to town. Afterward Sinise started to hold his press conferences for that event in the Palms lobby – and said he would come back and host a fundraising weekend for veterans with “Forrest Gump”.
Jane Russell was in town, had heard about the theaters and came over to Palms after Bulthaup took her to lunch and signed some walls. One evening Bulthaup’s brother brought his family over for a movie and was taken aback to find Larry Hagman already in the elevator, (Dallas & I Dream of Jeanie). Hagman’s manager had been to Palms before and wanted to show Larry the place.
The local Volvo Auto Museum often gets recent screen-used cars to display just before a film opens – they would often park the car in the Palms lobby which WGN would often cover on their morning show. In one instance Palms did a meet, greet and autograph event over opening weekend of Sin City 2 with three of the Sin City girls.
In another instance Palms and Blvd had “Fast & Furious” cars for opening weekend of the latest installment of that series. Eddie & JoBo from WBBM morning drive did a promotion the day before opening. One was broadcasting while being driven around the Loop in the movie car passing out free tickets to a sneak preview later that same day – his cohort back at the station was broadcasting what street corner they would appear with ticket next.
Blvd hired Catherine “Daisy Duke” Bach opening weekend of the Dukes of Hazzard movie for autographs and photos, and needed two “General Lee” cars from the TV series for rapid rotation downtown live with her and a morning show host to make sure every local morning television show got the interview. Bach’s guarantee was $12,000 and Blvd sold more tickets for the opening weekend of the Dukes of Hazzard movie than any other theater in the nation.
Animal House
Marketing Value of the Unique
The direct costs associated with most celebrity events were surprisingly modest, typically limited to travel expenses, promotional materials, and appearance guarantees.
According to media analyses compiled by Allied Advertising, the value of earned media coverage frequently exceeded $10 million annually and, in one year, surpassed $14 million. This exposure exceeded the combined tourism advertising budgets of both the State of Indiana and the City of Chicago.
Most importantly, these events created unforgettable experiences for patrons. Guests met actors and entertainers they never expected to encounter in person. They collected autographs, posed for photographs, shared their experiences on social media, and displayed memorabilia in their homes and offices. Those memories last a lifetime, creating the visibility and emotional connection to the theaters that conventional advertising could never duplicate.
The combination of recurring traditions, celebrity access, media attention, and unique promotional events created a powerful competitive advantage that distinguished the theaters from conventional cinemas and generated customer loyalty that lasted for years.
Catherine Bach
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Fan geting his picture taken in Palms lobby with the Sin City Girls - Rosario Dawson, Patricia Rodreguez & Eloise Brody in the car from the movie.
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