In our American society, in this, the information age, consumers are
constantly bombarded with stimuli from dozens of different sources. People
feel the need to be entertained constantly. Every element of life is faster,
more colorful, more engrossing. There is an opportunity to profit from the
public's desire to be continuously amused.
The film industry is growing. There were sixteen films that grossed over
$100M in 1997, up from 15 films in 1996 and only 10 films in 1995. The number
one box office hit last year was Titanic grossing over $600M.
The theme restaurant industy is also growing. Opportunist magazine says:
"With more than half a billion in revenues, [theme restaurants] have become
the fastest growing segment of the restaurant industry, with projections of $5
billion in annual revenue by the end of the century." So there is a
prediction of nearly a ten fold increase in the themed restaurant market by
the year 2000.
The time frame to act on the Cinefex Diner concept is now. The sooner
the better. At the moment, there are few competitors. The big names like the
Hard-Rock Cafe and Planet Hollywood are theme restaurants of a different sort.
The degree of product differentiation given by the Cinefex Diner concept,
coupled with the undersupply of theme restaurants overall, should be a strong
initial draw for consumers.
In the long run, the Cinefex Diner has the significant competitive
advantage of the changing theme. Planet Hollywood, the closest thing to a
matching competitor, has a stagnant collection of exhibits. Once a patron has
been to a Planet Hollywood, the novelty is gone. Theme restaurants like
Planet Hollywood and the Hard Rock Cafe attempt to bring customers back by
having them visit multiple restaurant locations. This phenomena is most
easily recognized by the collections of Hard Rock T-shirts from around the
globe in which many individuals take pride. The cinefex Diner would have an
entirly different look and feel each time the theme changed to a new movie.
This will induce customers who enjoyed their first Cinefex Diner experience to
want to return to "see what we have cooked up now"--even to the same location.
The two founders of Cinefex Diners are excited about the opportunity
available in the theme restaurant industry. We are committed to putting in
the time and effort needed to make this great idea a conceptual and financial
success.