The lingering effects of the pandemic and the inability to show new movies are prompting a plan to move Carnival Cinemas to a new Red Deer location, says owner Bill Ramji.
Ramji is staying in the movie business but is putting the Carnival Cinemas building on the market because he feels that occupying a property that is a “huge asset” doesn’t make business sense at a time when all independent cinemas are struggling to get movies.
Theaters such as Carnival Cinemas have always had to wait until the big chains, mainly Cineplex, are done with studio releases before showing them.
But Ramji and other independent theater owners are now not getting films for months and months after their release. Sometimes they don’t get movies until they’re already available on steaming services, including on-demand platforms. As a result, many people are simply watching these movies at home.
Hollywood also hasn’t fully prepared big screen productions, so there are fewer new movies available. Popular movies, such as ball Weapon: Maverick are still showing at Cineplex theaters, including the Galaxy – despite being released last May.
“He’s been playing there for 22 weeks and he’s still making money. It is unprecedented,” said Ramji.
The decline in revenue for independent theater revenue has been exacerbated by the lingering effects of the COVID-19 pandemic, with some people still unhappy at the gatherings.
Ramji definitely believes there is a future for Carnival Cinemas, which has been operating in Red Deer for 25 years, only he said it will be in a different space.
The property where Carnival Cinemas is located is in a prime location, close to the Capstone, downtown and the hospital. He feels that this building and land is now being under-utilized to accommodate a single-use, destination business that could be found virtually anywhere in the city.
“People will follow us,” predicted Ramji, who noted that Carnival Cinemas is the only live theater in Red Deer. Galaxy Cinemas, owned by Cineplex, is located south of the city in Red Deer County.
He is looking to lease within Red Deer and is considering various options in Clearview Market, the north and south parts of the city and existing shopping centers.
But Ramji needs to sell the building he owns on Taylor Drive before moving, as he anticipates having to do some tenant improvements in a new location.
He confirmed that there has been interest in the property, but no offers yet. With ample parking, he can envision the building as a multi-use complex in the future, perhaps holding medical suites, insurance or other offices, or even a restaurant or grocery store.
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