PVR Inox's food and beverage business grew faster than ticket sales last year: report

PVR Inox made big money last year just selling popcorn and Pepsi and other food items at their cinema halls.

Popcorn and Pepsi at film theatres burning a hole in your pocket? Is it often more expensive than the movie ticket itself? There's data to prove it too. As per a new report, theatre chain PVR Inox made considerable bank with just their food and beverage business in fiscal year 2023-2024.

PVR Inox made ₹1900 crore with just food and beverage sales in 2023. (Representative pic) (REUTERS)

Popcorn over movies?

According to the Moneycontrol report, F&B business grew faster than box office ticket sales. Revenue from F&B sales grew by 21% while movie ticket sales registered a 19% growth in the last financial year. ₹1,958.4 crore were made through F&B sales against ₹1,618 crore of last year. Movie ticket revenue was ₹3,279.9 crore versus ₹2,751.4 crore in 2022-2023.

Nitin Sood, Group CFO (Chief Financial Officer), PVR Inox, told Moneycontrol that because hit movies have been few and far in between, such a trend was seen last year. Karan Taurani, senior vice-president, Elara Capital, “F&B revenue is higher because they have opened up a lot of these places in the metros and non-metros where people can come and consume food and not necessarily watch movies. The company has also started delivery as an experiment in certain places but in very selective markets. So, these aspects have contributed to higher F&B revenue growth.”

Costly food in cinema halls

Movie-goers in India have often complained about the food and beverage pricing in cinema halls. Last year in July, a person's tweet about ‘popcorn costlier than an entire month of OTT subscription’ went viral. PVR responded with a new offer for its patrons, including bottomless popcorn tubs. They shared a picture and wrote, “We at PVR believe that every opinion matters and it must be respected. We have this update for you and for every moviegoer in India #PVRHeardYou.”

Last week, quick service restaurant operator Devyani International Ltd (DIL) and cinema exhibitor PVR INOX on Tuesday said they will jointly establish a company for the development and operation of food courts within shopping malls in India.

This partnership will empower DIL and PVR INOX to reach a wider audience and expand their market presence, the two firms said in a joint statement.

"This partnership further consolidates DIL's position in the food courts business in India and has paved the way for additional growth and expansion opportunity...DIL is committed to expanding its food courts business in India as one of the strategic future growth pillars," DIL Non-Executive Chairman, Ravi Jaipuria said.