I think the days of mass market theater maybe done and over with but even during the pandemic some theaters were barely staying afloat with private showings. If theaters turn from 300-500 person viewings for $10-20 a head with cheap food into a 10-50 person viewings for $30-100 a head but with 3+ star dining then they could work.
It would change the service from mass-market to niche market, with large numbers of job losses as some locations would not be able to compete in the new paradigm, but I think something of the business model would survive.
You already see a proof of concept like this with some theaters where they show current releases but serve full meals and alcohol and are 21+ only.