Just as the movie theaters are getting back to business as usual, there may be a new obstacle to their comeback: A Popcorn Shortage.
Supply Chain issues are plaguing every industry, and the Popcorn industry is no different. First, farmers aren’t growing as much Corn as they used to. It is not as profitable as other crops, like soy, so Corn is taking a back seat to those crops. Also, the Oil to make popcorn has increased in price, as well as the buckets to hold it all. This can have a significant impact on a movie theater, because the majority of their profits come from concessions. A theater only makes about 30% of what you pay for a ticket. But they get all the Milk Dud money. During Pre-Pandemic times, concessions had about an 85% profit margin. If theaters hope to keep that up, expect that $10 Bucket of Popcorn to cost $20, if it’s even available.