It costs about $5 million to build an Alamo from the ground up wirhout land and about $1.5 to $2 million to retrofit an existing theater. When Alamo retrofits a theater, it removes every other row of seats to make room for its high-back leather club chairs and tables

“Customers think of us as a movie theater that has full-service restaurants in the auditoriums,” says President and CEO John Martin, a former film industry executive. “The secret is we're a high-volume restaurant that shows movies, but that's internal. The outward brand is that we're a movie chain.” Martin bought the then three-unit concept in 2004, then worked on getting Alamo ready for franchised expansion.

Because each Alamo serves up to 900 meals a day, Martin developed a proprietary system so the kitchen doesn't get slammed. The formula involves staggering movie showings and figuring out which films will be blockbusters.

To keep the menu large but manageable, Martin removed labor-intensive, costly items including fish, steak and ribs, and reduced the number of pizzas and salads by half. The resulting menu features six or seven salads and 11 sandwiches, as well as appetizers, desserts, wines and about 120 to 130 beers.

Martin says food and labor costs have decreased since making these changes but won't quantify.

Alamo generates about 70 percent of sales from food and beverage and 30 percent from ticket sales. Special branded events help the company build F&B sales and play up the quirky nature of the brand. It holds weekly theme nights such as Terror Thursdays, when it shows horror films. Specialty events once or twice a month tie in with the films. For example, to promote “Indiana Jones and the Kingdom of the Crystal Skull,” Alamo offered the Indiana Jones Crystal Skull Feast. The $50-per-person event (excluding movie tickets) featured food and wine from countries in the movie. The menu included Chilean, South American and German wines, fried python, alligator and chicken tikka masala, an Indian dish in which chicken is marinated in yogurt and spices and served in tomato-cream sauce.

“We ended up on the Internet. We ended up in the papers,” Martin says. “So we just keep growing our brand that way because it's fun and people know we go the extra mile. We're known for going above and beyond to promote a film.”

Alamo also broadcasts sporting events and TV shows with a devoted fan base such as “Lost” for free. “When people come to the Alamo to do that, they buy food and beer and wine,” Martin explains.

The auditoriums are also available for private parties and corporate events. Companies rent the theater and its wireless and digital equipment for presentations. Then they usually treat their employees to a movie and meal.

The Alamo experience is currently relegated to Texas, but the company plans to move outside the state via franchising. In October a franchised unit will open in McAllen, Texas. In 2009 one company and two franchised units will open in Texas, while a franchisee opens one in Virginia.

Depending on experienced restaurant franchisees to each open a minimum of three units in college towns, Alamo expects to have 50 units operating in the Southwest and the East Coast in five years.