Regal Entertainment Group manages the largest movie theater chain in the US. At the end of fiscal 2007, Regal Entertainment operated 6,388 movie screens in 527 theaters in 39 out of 50 states.^[1] The movie theater industry is highly competitive due to the large number of players and the lack of control theater companies have on suppliers. In addition, Regal Entertainment's movie theaters must compete with in-home theater services, television movie providers and other forms of entertainment such as sporting events and music concerts.

To combat such competition, Regal Entertainment and other theater chains, such as AMC Entertainment and Cinemark USA , have moved to the megaplex theater format. Today, Regal Entertainment has an average screen/theater ratio of 12.1, which is about twice the industry average.^[2] By providing a centralized location for multiple screens, Regal capitalizes on economies of scale by minimizing labor and concession costs.

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