Cinema Giants PVR Inox Rack Up Whopping ₹1900 Crore from F&B Sales Alone
In a remarkable turn of events, leading theatre chains PVR Inox have demonstrated an astounding financial prowess, raking in a staggering ₹1900 crore solely from food and beverage sales in the fiscal year 2023-2024. This revelation comes as a testament to the enduring popularity of cinema snacks, which often surpass the revenue generated from actual movie tickets. According to a report by Moneycontrol, the F&B business of PVR Inox experienced a meteoric rise, outpacing the growth rate of box office ticket sales. With a remarkable 21% surge in revenue from F&B sales, compared to a 19% increase in movie ticket sales, PVR Inox cemented its dominance in the entertainment industry’s auxiliary sectors.
Analysts attribute this surge in F&B sales to various factors, including the scarcity of blockbuster releases and the diversification of cinema spaces to accommodate non-moviegoers. Karan Taurani, senior vice-president at Elara Capital, noted that the proliferation of cinema outlets across both metro and non-metro regions, coupled with initiatives like food delivery services, has significantly contributed to the surge in F&B revenue. This shift in consumer behavior underscores a growing trend where cinema halls are increasingly viewed not just as venues for movie screenings but also as social hubs for dining and leisure activities.
Despite the financial success, the exorbitant prices of food and beverages in cinema halls have long been a subject of contention among moviegoers. Last year, a tweet lamenting the cost of popcorn being higher than a month’s subscription to over-the-top (OTT) platforms went viral, sparking widespread debate. In response, PVR introduced innovative measures such as bottomless popcorn tubs to appease patrons and demonstrate responsiveness to customer feedback. Moreover, a recent collaboration between Devyani International Ltd (DIL) and PVR Inox to establish food courts within shopping malls reflects a strategic move to expand market reach and cater to evolving consumer preferences.
In conclusion, PVR Inox’s monumental success in F&B sales underscores the dynamic landscape of the entertainment industry, where auxiliary revenue streams play an increasingly pivotal role in driving profitability and enhancing customer experiences. As cinema halls continue to evolve beyond traditional movie screenings, adapting to changing consumer demands remains imperative for sustained growth and relevance in the competitive market landscape.
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