PVR Inox, India’s largest chain of multiplex theaters, faced a significant drop in moviegoers during FY25, yet managed to maintain its revenue through a focus on its food and beverage (F&B) offerings, as revealed in recent reports. The cinema industry struggled due to the repercussions of the 2023 Hollywood strikes and a less impressive lineup of Indian films. Ticket sales took a hit, falling from ₹3,258 crore in FY24 to around ₹2,942 crore, a decrease of ₹316 crore. Overall admissions plummeted nearly 10%, declining from 15.14 crore to 13.69 crore.
Despite these challenges, PVR Inox found a silver lining in its concessions. The average ticket price remained steady at ₹259, while the average customer spend on F&B increased by 1.5%, from ₹132 to ₹134. This strategy helped F&B income decrease at a slower rate, dropping by ₹153 crore, compared to the sharp decline in ticket revenue. The total income from cinema food decreased from ₹1,886 crore to ₹1,733 crore.
The company doubled down on its F&B business, introducing its first proprietary brand, ‘Dog Father’ hot dogs, and rolling out non-vegetarian options across 116 Inox screens. Additionally, PVR Inox formed a joint venture with Devyani International to run food courts in malls, with the first launch in Kota, Rajasthan, and plans for 7 to 9 more in FY26.
The home delivery and catering sectors also showed traction, with delivery services experiencing a 20% increase, averaging ₹2 crore in sales per month. A notable success story is Zea Maize, which owns the premium popcorn brand ‘4700 BC.’ Its revenue soared nearly 35%, reaching ₹102 crore in FY25, as the brand looks to expand into retail and modern trade in India’s booming snacks market, projected to nearly double by 2030.
To support this growth, PVR Inox invested ₹44.7 crore in Zea Maize during FY25 to enhance production and boost sales and marketing leadership.
Amidst the slowdown in cinema attendance, PVR Inox’s adaptable strategy emphasizes the importance of creating a comprehensive entertainment experience, showcasing how snacks and concessions can be essential for success, even when ticket sales decline.
