Why do movie snacks cost so much? It's probably not what you think

Yahoo

11-06-2025

(KODE & KSN) — It's pretty common knowledge that things like popcorn, soda, candy, and nacho cheese dip cost a lot more at a movie theater than they might at a grocery store, but have you ever wondered why? The answer may be a little more complicated than you'd think.
There is a common assertion that movie theaters are simply price gouging by selling their concessions well above market value, but the reasons for this are not always based around maximizing profit, as some movie theaters, especially smaller regional chains and standalone theaters, make the staunch majority of their money from concessions. Contrary to popular belief, most of the profits from ticket sales go directly to the studio that produced the film, not the movie theater showing it.
On average in the U.S., film studios take up to 60% of the box office, while theaters walk away with 40% or less.
Distributing films is not a one-size-fits-all process. Studios will adjust their cut of ticket sales to give theaters showing movies less likely to be successful a higher cut to make up the difference, while a summer blockbuster might see the opposite, with the studio walking away with a higher percentage than usual as the film is sure to be profitable for both the studio and the theater.
Today, the average rate for a movie ticket in the U.S. is $16.08. Following this average, the studio walks away with $9.65 for every ticket sold, while the theater receives $6.43 or less.
Putting that number into a larger perspective, the highest grossing film of all time (not adjusted for inflation) is 'Avatar' (2009) at $2,923,706,026. Following the average, this means the studio walked away with approximately $1,754,223,724 while every movie theater that showed the film split the remaining $1,169,482,481, leaving the profit of the film for a single theater location to just thousands or even hundreds of dollars based on the size of the theater.
These figures are based on the highest grossing film of all time, so keep in mind the average worldwide movie gross is only about $15,000,000, with large, big budget franchise films usually raking in between $300,000,000 and $700,000,000, meaning theaters rarely generate ticket sales to the levels they did with a box office behemoths like 'Avatar' or 'Star Wars: The Force Awakens'.
How do movie theater franchises and independent theaters make up the difference? Concession sales. On average 80% or more of profit for a movie theater is generated from concession sales. This is why you might see prices like $16 for a large popcorn bucket, $6.50 for a box of candy, and $7 for an ICEE drink.
Movie theater snack prices, while high, are usually not designed to maliciously 'rip people off' as common sentiment suggests. If not for the high yield of profit from concession sales, movie theaters as they're known now would certainly fade fast, as most movie theaters (especially independent locations) pay their staff, renovate and repair, and pay utilities with money made on popcorn and jumbo hot dogs, not ticket sales. This is why many theaters offer combo deals, and why as time goes on, more and more theaters are branching out into less traditional offerings like specialty flavored popcorns, personal pizzas, and fried chicken strips. Boosting concessions profit boosts the theatres chances of long-term success.
So, next time you take a night out at the movies, and feel the urge to tell a theater employee 'what a rip-off' that $8 small popcorn you bought is, remember without that purchase and all others like it, the employee assisting you could not be paid and the movie theater industry would not survive, especially in an era where streaming services and online content continue to usurp the traditional movie-going experience.
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