Multiplexes see F&B revenue growth beat ticket sales

livemint.com:

New Delhi: Multiplex chains are seeing revenue from sale of food and beverages grow faster than earnings from ticket sales, in an indication of the failure of movies to capture audience attention. And it isn't just about selling popcorn and cola at the cineplex. Theatre owners are increasing F&B sales through gourmet food created by star chefs, tie-ups with aggregators for home delivery, outdoor catering, kiosks in malls, etc.

Rahul Singh, chief operating officer, PVR Inox Ltd, said the company is aggressively and proactively diversifying its avenues to generate F&B revenue, ensuring resilience against fluctuations of footfalls. That's showing in the numbers. PVR Inox saw income from F&B grow 17% in Q4FY24 compared to Q4FY23.

Ticket sales earnings, on the other hand, rose 6% over this period. F&B sales have grown steadily over a period of time, and as of Q4 FY24, comprised 32% of PVR Inox's total income, compared to 49.2% share of ticket sales. And for Cinepolis, its F&B revenues have historically grown by around 20-22% annually, whereas box office revenues have risen by 18-20%, the company's managing director, Devang Sampat, said.

Cinepolis is an unlisted company with a movie theatre chain comprising 442 screens in more than 35 cities. “Multiplex chains are heavily investing in creating a comprehensive and enjoyable cinema experience for their customers, which includes diversifying their food and beverage offerings. By providing a wider variety of food options, these chains encourage patrons to spend more on F&B," said Sampat.