Arguably, the theater industry was the hardest hit by the pandemic, as they were some of the first to close and last to open back up. During their closure, the theater industry in Chicago and everywhere else saw a cumulative loss of roughly $4.7 billion, which averages to $437,000 per organization. So, for many theater groups, the only reason they could keep the lights on during the shutdown was accessing grants like The Shuttered Venue Operators Grant and the Paycheck Protection Program. However, the substantial finical losses they experienced are not why they were the hardest hit during the pandemic; moreover, it’s what happened to the industry after it opened post-pandemic that awards them the most affected by the pandemic. Executives of theaters believed that their loyal customers would return, and business would resume as usual. However, it wasn’t the warm welcome they were expecting. Also, there are more fears on the horizon with a looming recession.
Since opening, theaters have experienced a decrease in their operating capacity and audience attendance, with some theaters reporting that their ticket revenue is about one-third of what it was before the pandemic. And to make matters worse, the audiences have become much picker, with viewers only showing up for box office hits like Hamilton or Wicked. Also, there are more fears on the horizon with a looming recession.
Theaters are also experiencing the burden of inflation, which has made everything more expensive for them. Everything from the lumber they use to make sets to covid tests they provide their employees, in addition to employee turnover and retention.
So, they’re bringing in less, but everything is becoming more and more expensive. What can you do as a theater executive to lower your costs? Well, believe it or not, technology can help alleviate these challenges.
Sāgin works with many theater groups like Steppenwolf, Auditorium Theater, and Second City, and for each, we were able to effectively outsource their IT department, which means they have fewer people on the payroll while also receiving reliable IT support that can be leveraged to increase revenue. We can also offer theaters nonprofit discounts on our services and software. Sāgin also offers management consulting, so we can provide a fresh perspective on any problems your organization may be having and offer proven solutions. So, we’re more than just an IT company, we are a true partner on your path to success.
SAGIN, LLC is a professional services firm which provides services in consulting, technology and talent management. If you would like to learn more about these solutions you can contact us at: +1.312.281.0290 or email@example.com. Also visit us at www.saginllc.com