BusinessTN

Growing Phil Zacheretti’s movie theater chain, Knoxville-based Phoenix Theatres, has been slow-going. And that’s fine with him. Certainly, he wants nothing but success for his young company, but in sharp contrast to his former employer, Regal Cinemas, Zacheretti’s plan is simple: Dominate underserved markets by building new theaters and bring older venues up from the ashes, all while focusing on the moviegoer experience.

The former Regal senior marketing and advertising VP knows a thing or two about customer service. The 31-year veteran began as a theater usher in rural Kentucky at age 15. Today, he and his partners, wife Tammie and designers Bobby and Pam Franklin, manage nine theaters totaling 84 screens nationally, with three projects underway.

The theater industry took a box office beating in 2005, drawing a disappointing $8.99 billion after a three-year run banking in the $9.5 billion range.

“The industry is in great shape. Last year was a blip on the radar screen,” Zacheretti says, explaining that poor theater attendance directly reflects the quality of movies produced. More promising releases this year, including blockbusters Cars and the Pirates of the Caribbean sequel fared well for Phoenix’s new venues like Greeneville’s Towne Crossing 8, which opened in February.

The company partnered with Bewley Properties to open the town’s first new theater in 30 years with state-of-the-art features found in leading chains.

Zacheretti is mum about financial results but did say the buzz around Towne Crossing 8 prompted calls from neighboring Morristown and Jefferson City to be next in line. “We take every prospect seriously, though not every opportunity makes economic sense,” he says. The Jefferson City location might work for an eight-to-10-screen theater since the closest venues are 30 minutes away. Phoenix has turned down 200 projects since 2000 to avoid getting too big, too fast. Knoxville-based theater giant Regal, the country’s largest circuit with 544 sites, is “going for the homerun” by building 16- to 24-screen megaplexes, Zacheretti says. Without stockholders to appease, Phoenix can cherry-pick its jobs.

“There aren’t many people doing what Phil’s doing. I respect Phil, and I can relate to his entrepreneurial spirit,” says Regal CEO Mike Campbell who attended the Greeneville theater’s grand opening. Could Zacheretti pose a threat to Campbell’s Regal empire? It’s possible, but that would be missing the point.