1) Family Video, a movie rental chain with 735 stores, is experimenting with delivering pizza and movies together to better utilize excess store space and revenues. 2) As DVDs replaced larger video boxes, Family Video stores had more empty space, so the chain partnered with Marco's Pizza to offer online ordering and delivery of pizza and movies by a single driver. 3) While many movie rental competitors have struggled or gone out of business, Family Video has thrived with a smaller footprint and lower prices, seeing a 4% sales increase last year and growing profits.

1. Would You Like Pizza With Your Movie? One Chain's Retail Experiment - Forbes 5/7/12 10:41 PM
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What do you do when you've got empty space in your retail Studio
store? In the case of one movie-rental chain, the answer is:
Draw Something Loses 5M Users a
add pizza. Some Midwestern movie fans will soon be able to Month After Zynga Purchase
go online and order both a gourmet pizza and their favorite
+ show more
flick, then get them both delivered by a single driver, thanks
to a creative new initiative from Midwestern chain Family
Carol Tice
Contributor
Given what's happened in the video-rental industry, it's courtesy of Marco's
Pizza + Follow on Forbes
surprising the dinner-and-a-movie idea hasn't cropped up
before. Ever since videos became DVDs and digital Retail and franchising have been my boat for over 15
downloads brought in-home movie delivery to many consumers, the rental years. I've written for Entrepreneur, the Seattle
business has been a challenging retail niche. Of the two biggest chains, one Times, Seattle Magazine, Alaska Airlines, Pugct
Sound Business .Journal, Nation's Restaurant News,
(Movie Gallery) went out of business, and the other (Blockbuster Video, now Costco, and many more. In my free time, I mentor
owned by Dish Network) is struggling to survive. other freelance writers through my Make a Living
Bucking the trend is 735-store Family Video, a + show more
family-owned company based in Glenview, 111.
Company CEO Keith Hoogland tells me the 34-year-
old chain's smaller retail footprint and low-price
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philosophy has kept the company thriving, with
Would You Like Pizza With Your Movie? ()ne
stores across the Midwest. Sales rose 4 percent last Chain's Retail Experiment
year and profits grew.
MORE FROM CAROL TICE
FrTiirTffl But there was still a problem: When more compact
DVDs replaced bigger video boxes, the stores didn't # £ •• ft
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need as much space. Each of his 7,000-square-foot
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