I was surprised when a new multiplex was built nearby within the last dozen years; the whole concept seems so antiquated. Outside of kids too young to drive, who goes to see movies in a theater anymore? The last movie I saw in a theater was the second Hobbit movie about a year ago (with the kids), and I would have been quite content to wait to see it at home.
The whole idea of subdividing big areas into small viewing rooms just seems so inefficient.
There are technologies that are not in the home yet. I have yet to see a three-D movie and know there are a number of processes. One used for the Hobbit film used a faster refresh rate (just as IMAX films use faster frame rates) and that would be a unique viewing experience.
I went to the final Python performance but that was a live event. In the past I've been to a screening of a concert video (often scheduled about a month before the DVD release for Coachella or Ladies & Gentlemen The Rolling Stones).
I go see a movie in the theater when I get a free pass (maybe once every year or two) or sometimes a revival/repertoire screening at a museum on actual film).
Movie Tavern is doing well because it combines dinner and a movie. It is better seen as a meal where you get a movie for a little more, versus going to the movies and paying for over-priced food.
The other model is Family Video and a pizza chain. You can order the pizza online and select a Family Video rental from that store, in short getting pizza and a movie without the hassle of hitting Redbox and then ordering dinner.
Both capitalize on convenience and getting entertainment with the food.