The Concept

Flix Brewhouse is the world’s only first run movie-theater/eatery/microbrewery. As America’s Cinema Brewery, Flix Brewhouse combines the latest Hollywood productions, exceptional custom crafted beer and delicious food – all served “in theater,” on an a la carte basis, allowing the experience to be customized. The genesis of the Flix concept stems directly from consumer demand for a better, more value oriented way to watch a movie. Designed from the inside out to deliver a premium viewing and dining experience at an affordable price, Flix Brewhouse addresses moviegoers’ primary concern – the rising cost of admissions and concessions and the typically poor value realized at the conventional multiplex. The original Flix Brewhouse location in Round Rock, Texas has been in operation since July 2011.

The Plan

Based upon rapidly rising year-over-year admissions, consistently positive customer feedback and robust EBITDA, the company plans to launch up to 15 additional Flix Brewhouses in select mid-sized, middle class to upper-middle class markets in or near carefully chosen metropolitan areas, primarily in the Southwest, Midwest and Southeast. Since opening, the concept has been continuously refined in order to ensure both its scalability and brand uniformity. A first class management and operations team is already in place and will be expanded organically as operating units are added over the next several years.

Market Opportunity

While domestic box office gross dollars continue to slowly grow, since the advent of stadium seating and surround sound in the early 1990s there has been little innovation in the typical guest experience. Digital projection, which has hugely impacted the efficiency of distributing films, has only incrementally improved the guest viewing experience and the current version of the 3D experience continues to be rejected by many consumers. The nascent cinema-eatery concept is the first major guest impact game-changer since stadium seating. Established major movie theater circuits have attempted to break in to this sub-market of the cinema industry by retrofitting theaters, with often tepid results. Other newer operators have designed cinema-eatery concepts that are being expanded presently – many with very favorable results. None, however, have combined the excitement of a brewpub (featuring exceptional craft beer brewed on-premises) with the cinema-eatery concept, all offered at a comparatively value price. This is the essence of Flix Brewhouse.

Investing in Flix

Flix Brewhouse is owned by Flix Entertainment LLC, a multi-concept hospitality holding company focused on maximizing the growth potential of the Flix Brewhouse brand. Flix Entertainment LLC is seeking investors for the development of up to six new Flix Brewhouse locations through 2015. Flix projects that each location will require, on average, one to three years to generate normalized operating income, depending on location. An investor exit is anticipated in five +/- years, either through recapitalization or a possible sale to a strategic buyer.

Matt Silvers
Senior Vice President Real Estate & Development
Flix Entertainment LLC
2000 IH-35, Suite Q11
Round Rock, Texas 78681