ALAMO DRAFTHOUSE CINEMA drafthouse.com / HQ: Austin, Tex. / Tim League, CEO: “We are passionate about what we do. That is why we [are] known as a company for movie lovers by movie lovers.” PHOTO CREDIT: NICK SIMONITE PHOTO CREDIT:
The owners’ and staff members’ passion for movies helps to differentiate Alamo Drafthouse Cinema in the marketplace.
strange differentiator for us,” he ex- Projecting Success plains. “We have expanded by work- ing with both franchise partners, and Alamo Drafthouse Cinema plans to continue to thrive by the people we hired who believe in our mission and are movie obsessed expanding into the best markets. BY BIANCA HERRON as well. “We are passionate about what Tim League and his wife, Kar- in Brooklyn, N.Y., as well as one in we do. That is why we have become rie, opened the first single-screen Chandler, Ariz., which is just outside known as a company for movie lov- Alamo Drafthouse Cinema nearly of Phoenix. I’m really proud of what ers by movie lovers. I think that really 20 years ago on May 25, 1997. With we have done. helps us strive to continue offering a 27 locations today, the Austin, Tex- “In 2017, we will open six new loca- great product.” as-based chain has become known for tions in the United States, including In addition, several key people that dine-in theaters with creative pro- the recently opened sixth location League has hired over the years have gramming –including themed mov- here in Austin and our first location contributed to Alamo Drafthouse ie nights – and a strict policy of no in Corpus Christie, Texas,” he adds. Cinema’s success. talking or texting. When League entered the cinema “We have hired some very phenom- “We grew 28 percent in 2016 and business, he notes that his passion for enal people, including Mike Sherrill,” are looking for continued growth movies was the only factor that set League explains. “He joined the com- this year,” CEO Tim League says. him apart from competitors. pany when we were opening our third “We recently opened a new location “It has become something of a location. At the time he was our area
44 franchising-today.com SPRING 2017 ALAMO DRAFTHOUSE CINEMA
director and eventually became our COO. However, a few years ago, we named him chief creative officer. “He has been my right hand man for a long time and now oversees a large creative team that does all of the marketing, programing, promotions and special events for the brand,” he continues. “Sherrill brings a financial background in operations to the cre- ative department. Since he has been in that role, things have been really fantastic and he has certainly helped build the company.” Alamo Drafthouse Cinema also re- cently hired Mike Trafton as its chief technology officer. “We are investing big into technol- ogy right now, in every conceivable way,” League says. “The big priority
Alamo Drafthouse Cinema is for us in this first quarter, and the one of the highest-volume next, are reimagining our online restaurants in Austin, Texas. presence, app, online sales channels and also our loyalty programs. So those are big initiatives that Trafton is spearheading.”
Innovative Tech Since the early 2000s, technology has played a critical role not only in Alamo Drafthouse Cinema’s success, but also in setting the company apart from other theaters. “We might have been one of the first, if not the first, theater to have online ticketing. That system was built in-house in 1999 through 2000,” League notes. Today, about 70 percent of Alamo Drafthouse Cinema’s ticket sales are online, which is radically higher than the industry, League says, adding that the company is “pushing the envelope there as well.” Also, about a decade ago, the movie theater industry went The company looks for employees through a few changes, including the who have a love for movies, as well roll out of digital cinema. as food and beverage. “We have re-outfitted all of our the-
46 franchising-today.com SPRING 2017 ALAMO DRAFTHOUSE CINEMA PHOTO CREDIT: ANNIE RAY PHOTO CREDIT:
Mike Sherrill started as the company’s COO but is now its chief creative officer.
aters with it,” League says. “Also, when advertisement in nearly 16 years,” he I first started in 1997, a viable part of says. “So we shifted to digital adver- our marketing campaign was to hire tisements and a digital presence a long people to pass out flyers.” time ago and have not looked back.
WE“WE LIKE LIKE TO HAVE TO FUN AND TRY TO OFFER THE BEST EXPERIENCE AT THE MOVIES FOR OUR CUSTOMERS.” – TIM LEAGUE
League notes that the idea of social “My background before I got into media, sophisticated customer data the industry was engineering,” League tracking and digital ad strategy was adds. “I have always been sort of a com- nothing at the time. But it is import- puter nerd since high school, so these ant now with everyone having multi- new technologies were fun toys to me ple electronic devices. “Due to that we as I like to stay aware of new things that have not taken out a daily newspaper are coming out.”
48 franchising-today.com SPRING 2017 ALAMO DRAFTHOUSE CINEMA
Alamo Drafthouse Cinema has is at the counter, which is its concierge position. “I look for that same qualification I had when I got into the business: a com- pletely movie-obsessed human being,” he says. “That person takes the job in
PHOTO CREDIT: ANNIE RAY PHOTO CREDIT: part because of the great benefit of get- ting free movies, but can also talk with the customers, give recommendations and be excited about the programming we are bringing in.” CEO Tim League founded Alamo Potential employees at the Alamo Drafthouse Cinema in 1997 and has Drafthouse Cinema also have to have grown it to 27 locations. a love for food and beverages, League adds, noting that the company has be- ‘Completely Movie-Obsessed’ tiple positions. “We are a fast-paced come one of the highest-volume restau- When looking to hire employees for its operation, so we are looking for people rants in Austin as a result of the quality ticketing, concessions and other hourly with intensity and [who] like to thrive in in its menu. positions, Alamo Drafthouse Cinema that kind of environment,” League says. “We are a causal restaurant and our looks for individuals who thrive in mul- One of the most important positions food is nearly all made from scratch.
SPRING 2017 franchising-today.com 49 ALAMO DRAFTHOUSE CINEMA
we not only have movie nerds, but beer nerds working for us as well. “We like to have fun and try to offer the best experi- ence at the movies for our customers,” League contin- ues. “That is why we were recognized as ‘Best Theater In America’ by Entertainment Weekly and ‘Best Theater Ever’ by TIME Magazine.” PHOTO CREDIT: NICK SIMONITE PHOTO CREDIT:
‘An Awesome Place’ For the past few years, Alamo Drafthouse Cinema has grown 20 to 25 percent annually, and expects to continue Alamo Drafthouse Cinema is dedicated that growth by expanding into the right markets. to offering the best experiences at the “We are not looking to create any sort of hockey stick movies for its customers. growth profile, but are going to keep up that growth pattern by moving into the best, coolest, fun markets in It’s casual fare, we offer sandwiches, salads and pizza,” America,” League says. “I have an ulterior motive as we League says. have started a film distribution company, Neon, which Local beer is very important to Alamo Drafthouse Cin- buys and plays films at our cinemas and other theaters ema, as well. “We usually have 32 craft beer taps, and at least 80 percent of those are local,” League explains. “So
Alamo Drafthouse grows by 20 to 25 percent annually, and wants to maintain that by moving into great markets.
50 franchising-today.com SPRING 2017 ALAMO DRAFTHOUSE CINEMA
around the country. We started the venture about six years ago, and it allows me to have a platform for independent films, films that we are passionate about, and find a bigger audience for great, cool emerging talent and up-and-com- ing movies.” Neon has released about 35 movies over the years and has been nominated for three Academy Awards – two for docu- mentaries and one for a foreign language film. “Ultimately, we just want to have an awesome place for people to watch a wide selection of great movies,” League says. “And we’re providing that one theater at a time.” The Alamo Drafthouse Cinema will celebrate its 20- year anniversary in May, according to League, he is proud of what he and his wife have accomplished.“When we first started the company, our long-term plan was really nothing more than to run that single-screen theater,” he says. “To look back over 20 years and see that we have grown into a much larger company is really something special.”
PHOTO CREDIT: NICK SIMONITE
SPRING 2017 franchising-today.com 51