Popcorn over movies? PVR Inox made Rs 1900 cr with just food and beverage last year

• Image Credit: Google

• May 21, 2024 | Guriya Khatun

F&B sales amounted to Rs 1,958.4 crore compared to Rs 1,618 crore the previous year, while movie ticket revenue stood at Rs 3,279.9 crore, up from Rs 2,751.4 crore in 2022-2023.

Digital Desk: Do you often find that buying popcorn and Pepsi at the movie theater ends up costing more than the actual ticket? Well, recent data supports that claim. A new report reveals that PVR Inox, a leading theater chain, saw substantial profits solely from its food and beverage sales during the fiscal year 2023-2024.

Popcorn over movies? 

Seemingly, snacks have taken precedence over movies themselves. According to a Moneycontrol report, revenue from food and beverage sales grew by 21%, outpacing the 19% growth in box office ticket sales last year. F&B sales amounted to Rs 1,958.4 crore compared to Rs 1,618 crore the previous year, while movie ticket revenue stood at Rs 3,279.9 crore, up from Rs 2,751.4 crore in 2022-2023.

Nitin Sood, the Group CFO of PVR Inox, explained to Moneycontrol that this trend was observed due to the scarcity of blockbuster movies last year. Karan Taurani, senior vice president at Elara Capital, added, "F&B revenue is on the rise because cinema chains have expanded into both metro and non-metro areas, where people often visit for food rather than just movies. Additionally, experiments like food delivery in select markets have contributed to this surge in F&B revenue."

The high prices of food and beverages in cinema halls have long been a point of contention among Indian movie-goers. Last July, a tweet went viral highlighting how the cost of popcorn alone could cover a month's subscription to an OTT platform. In response, PVR introduced new offers, including bottomless popcorn tubs, as a gesture of listening to customer feedback.

Recently, Devyani International Ltd (DIL), a quick-service restaurant operator, and PVR INOX announced plans to establish a joint venture for food court development and operation within shopping malls in India. This partnership aims to broaden their reach and enhance their market presence, as stated in their joint statement. Ravi Jaipuria, the Non-Executive Chairman of DIL, emphasized that this collaboration strengthens DIL's position in the food court business and aligns with its strategic growth objectives in India.