Never mind the movie - just get the popcorn! That's the latest audience trend at the cinema
The F&B (food and beverage) business of cinemas has been holding relatively steady even though movies haven't been doing too well at the box office over the past few months, especially in the Hindi belt, theatre owners and experts said.
However, experts said ancillary streams such as F&B can thrive only when new movies start performing well. More importantly, exorbitant F&B rates are pinching viewers across demographics and segments. With even basic popcorn and cola combos priced upwards of ₹700 in some cases, audiences are feeling ripped off.
For PVR Inox, India's largest multiplex chain, although revenue from the sale of movie tickets fell 9.9% in FY25, the dip in F&B was lower at 6.7%. F&B spending per head actually rose by 1.5%.
The successful re-release of older hits and strategies like showing cricket matches and live events, along with discounts and buy-one-get-one-free offers for F&B have helped exhibitors. According to theatre owners, audience preferences too have changed.
'Audiences today seek more than just the traditional popcorn-and-cola experience. Our expanded food offerings now include a full range of meals, and we're observing a clear pattern of individual orders per head, especially in group settings, leading to higher average spends per customer," said Kunal Sawhney, chief operating officer of MovieMax Cinemas.
Sawhney added that several initiatives have contributed to strong F&B performance including a diverse menu featuring both snacks and meal options, the ability to pre-order food while booking tickets, and redesigned cafés with specialty counters. In addition, there are auditorium delivery, digital ordering and payment convenience, on-screen promotions, customised menus and flexible pricing.
Complete experience
Rahul Puri, managing director, Mukta Arts and Mukta A2 Cinemas, agreed that F&B revenue has remained steady and, in many locations, grown despite a dull box office.
'Guests are increasingly seeing cinema outings as a complete experience, and indulgence in quality food and beverages has become a big part of that. Consistent innovation in our menu, value-driven pricing, and strong in-theatre promotions have helped keep F&B performance strong, even when box office content fluctuates," he added.
Several cinema chains expect F&B to become a significant contributor to revenue. With strong guest response to value-driven offerings and continued focus on quality, they anticipate an even more important role for F&B in the business.
'Currently, F&B contributes around 34% of our revenue. We expect this to grow to 40% in the next two years," said Bhuvanesh Mendiratta, managing director, Miraj Entertainment Ltd, a company that operates multiplex theatres.
However, experts pointed out that the real driver of the film business is new and exciting movies. Even though F&B does its bit to improve earnings, it will always remain an incidental – and not standalone – expense.
'F&B is a demand derived from the film. Also, prices are too high, especially in national chains, and this negative perception built around F&B in general is very sad for the overall business," independent exhibitor Vishek Chauhan said.
While single-screen owners operating in smaller towns such as Chauhan are cognizant of the need to maintain reasonable F&B rates, mostly pricing popcorn and colas below ₹100, they said the bigger chains have clearly outpriced at least 90% of the population.
'Multiplexes are seen as a brand for the rich and even when it comes to people who can afford these rates, the narrative around being ripped off stays. The negative perception has been built," Chauhan added.
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