Most of us feel bad when we see the price of popcorn buckets and cold drinks in movie theaters. The first quarter reports of PVR, Inox have revealed that around one-fourth of the total revenue of these companies come from selling food and drinks.
Indian multiplex industry is growing at an annual rate of 14% over the last three years, as the revenue from segments like F&B and advertisement have grown faster at 21%, according to Inox.
PVR managed to earn Rs 202.71 crore from F&B sales, which is 23% more than the last quarter of the previous financial year. This is mainly because of the high-margin in food segment which constitutes about 30% of PVR’s total quarterly revenue of Rs 684.36 crore.
Similarly, Inox, reports show that the F&B segment contributed 26.8% of total revenue in the last quarter. After box office collections, it is the second biggest source of revenue for multiplex chains. Inox Leisure said that revenue from F&B was Rs 306 crore during 2017-18 while F&B cost was only about Rs 74.4 crore. Inox, therefore, made a profit of about 400% in this segment.
Multiplexes are giving a tough time to restaurants as movie watchers are more likely to spend money on food than normal ones. The menu in theaters is no longer limited to popcorn and a cold drink, as multiplexes now have different categories of food available for people fond of different tastes. Food made from organic, fresh and healthy ingredients, has become a popular snack option for health-conscious customers.
Also, ordering food in multiplexes has become comparatively easier as it was some years ago. Pre-booking through mobile apps have also contributed to this.
Reports also concluded that an average movie-goer spends around Rs 66 during one visit on F&B products. The average ticket price, on the other hand, is Rs 193. PVR has seen the average spending per person on F&B increased by 12% in 2016-17.
