Tollywood filmmaker Teja has opined that exorbitant popcorn and coke prices in theatres are the reason Bollywood's commercial stature has been diminishing. He added that Telugu cinema is able to survive mainly because there are adequate single screens in Andhra Pradesh and Telangana. In Mumbai, it is the multiplexes that play a dominant role. And they sell foods and beverages at stunning prices, Teja pointed out.
So, can multiplex theatres slash F&B prices and save the film industry? Reducing the prices to levels that the middle class can afford breezily will always be a non-starter.
In 2018, the Maharashtra government directed theatres and multiplexes in the State to allow patrons to bring their own popcorn, samosas, burgers, etc. Within days, the share price of PVR went down by 13.10%. Inox’s shares took a blow as well.
The share prices bore the brunt because shareholders believed that multiplexes will witness a revenue fall if they fail to make a killing from F&B. Multiplex chains are heavily dependent on profits from eatables.
In January this year, Abhishek Jain of Arihant Capital told Money Control that F&B contributes 25 to 35 percent of the overall revenues of the cineplex companies and generates 45 percent of the overall operating profit. You can imagine!
