Dean Murdock, the owner of the Starlite Theater chain, purchases an abandoned theater that was once the site of a horrific massacre perpetrated by the disgruntled owner on the theater's closing night. He notifies his employees of the chain's acquisition of the property, and promotes several to renovate and subsequently operate the theater. To motivate his employees, he offers a $1,000 bonus that will go to one of them after a test run, much to the chagrin of his incredulous assistant, Miss Blackwell.