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We Took Out A $1 Million Loan To Buy A Movie Theater — Now It Brings In $550K A Year
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00:08:53

How a $1 Million Loan Revived America's Oldest Drive-In Theater

Matthew McClanahan (35) and Lauren McChesney (41) transformed their $1M loan into a thriving cultural landmark. Shankweiler's Drive-In now generates $550K annually despite film licensing consuming over 50% of ticket revenue.

Seizing a Vanishing Legacy

When America's oldest drive-in theater faced potential demolition after 6-7 years on the market, childhood patron Matthew McClanahan and partner Lauren McChesney intervened. "We were nervous it would become apartments or a warehouse," McChesney recalls. Despite lacking theater management experience, their film background and mobile projection ventures gave them confidence. "We had the blueprints to redefine the business," says McClanahan.

The Financial Tightrope Walk

Funding required creative solutions: $50,000 in seller financing reduced their SBA loan to exactly $1 million. Expenses reveal industry realities:

  • Film licensing: 50%+ of ticket revenue, ~33% of total operating costs
  • Utilities: Significant drain from projection/kitchen equipment
  • Seasonal labor: Expanded summer crews increase payroll
  • Mortgage: Fixed $15,000/month regardless of ticket sales

Operational Realities of Drive-In Management

Programming Strategy

As a first-run theater, Shankweiler's shows new releases in nightly double features. Summer targets families with PG/PG-13 films, while winter shifts to adult audiences. Blockbusters like Wicked can unexpectedly boost off-season revenue.

Profitability Challenges

Only 4 months generate profit, with July as the peak. McClanahan notes: "We're still taking a loss in winter, but less than if completely closed." The couple took minimal salaries in Year 1, with sustainable pay only achievable in Year 2.

Crisis Management & Daily Operations

Two weeks post-acquisition, the projector failed catastrophically. With no repair budget, McClanahan became a self-taught technician. "We immediately lost momentum—people thought we'd closed," he recalls. Daily operations remain hands-on:

  • 2:00 PM: Inventory checks and bathroom cleaning
  • 6:30 PM: Crew arrival and snack bar prep
  • 7:00 PM: Gates open with photo ops and local vendors enhancing the experience

"Writing a $50,000 payment to a movie studio is still gut-wrenching. But when hundreds share this experience, you remember why we do it."

— Matthew McClanahan

Balancing Nostalgia with Viability

Maintaining 1950s charm while ensuring profitability requires careful calibration. "You don't want to modernize too much or it loses its soul," McClanshan explains. Seasonal innovations like themed decorations and local food trucks attract crowds without compromising heritage.

The Ultimate Reward

Despite the stress, the owners value the lifestyle shift. McChesney contrasts it with her healthcare career: "Here I can clear my schedule for recovery days." McClanahan summarizes their motivation: "When you watch hundreds share this experience, the weight lifts. We're facilitating something special for the community."

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