After a social media controversy over high bills for popcorn and cold beverages, the Indian multiplex giant PVR Movies recently announced a considerable cut in its food and beverage costs supplied at the network of cinemas and PVR-INOX movies. PVR Cinemas accepted the criticism and revised its pricing approach in response.
The public outrage was particularly visible when a Noida man uploaded a screenshot of a bill indicating he was charged Rs 360 for a Pepsi and Rs 460 for 55gm popcorn at a PVR Cinema. The tweet quickly went viral, sparking discussions over the excessive rates paid by multiplexes for food and beverages.
PVR Cinemas also announced new food and beverage (F&B) deals across the country, including attractively priced meal items, combos, and ‘bottomless popcorn and Pepsi’ offers, in addition to cutting their food and beverage prices.
PVR Theatres Now Have New Food Offerings
The multiplex company said on Wednesday that from 9 a.m. to 6 p.m. on weekdays, they will provide burgers, samosas, sandwiches, and Pepsi for Rs 99. PVR Cinemas is presenting an amazing “bottomless popcorn and Pepsi” bargain with limitless refills over the weekend, albeit the pricing has not been revealed.
PVR Cinemas tweeted on July 12 – “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,”.
Food And Beverage Prices Will Be Raised To Increase Profit Margins
Despite the recent GST Council decision to reduce taxes on food and drinks supplied in movie theatres from 18% to 5%, PVR Cinemas did not initially modify its food and beverage expenses. With food and beverage expenditure accounting for approximately 52% of a film’s ticket price, Nitin Sood, CFO of PVR Inox, believes that F&B income is critical to a cinema’s profitability.
In order to compete with cheaper movie viewing choices, cineplexes such as PVR are aiming to boost their profit margins through services such as F&B, so that the ratio is more in line with developed countries, where F&B may account for up to 70% of a person’s expenditure at the movies.