 "PVR Inox's food and beverage revenue outpaced ticket sale in FY24")
Theatre chain PVR Inox experienced significant financial gains primarily through its food and beverage (F&B) business during the financial year 2023-2024.
The growth rate of the F&B sector surpassed that of box office ticket sales. The revenue from the F&B business surged 21 per cent during FY24, while movie ticket sales saw a 19 per cent increase, according to a Moneycontrol report.
The F&B sales generated around Rs 1,958.4 crore, up from Rs 1,618 crore in the last year. Movie ticket revenue amounted to Rs 3,279.9 crore, compared to Rs 2,751.4 crore in FY23, the report said. The report cited Nitin Sood, group chief financial officer (CFO) at PVR Inox, who said since hit movies have been few and far in between, such a trend was witnessed last year.
Karan Taurani, senior vice-president at financial services company Elara Capital said, “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.”
High cost of food at theatres
In India, cinema attendees often express dissatisfaction with the pricing of food and beverages at movie theatres. In July last year, a tweet comparing the cost of popcorn to that of an entire month’s OTT subscription gained widespread attention. In response, PVR introducing a new offer featuring unlimited popcorn tubs to address customer feedback. It shared an image along with the message, “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, Devyani International Ltd (DIL), a quick-service restaurant operator, and cinema exhibitors PVR INOX announced plans to collaborate on establishing a company aimed at creating and managing food courts in Indian shopping malls. Through this partnership, DIL and PVR INOX aim to broaden their reach and enhance their presence in the market, as stated in a joint announcement by the two companies.
Ravi Jaipuria, non-executive chairman at DIL said, “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.”