Discounts on tickets lure young audiences to multiplexes but dampen spending on food and drinks
Urban youth-centric films are popular but multiplex chains like PVR Inox reported a dip in spend-per-head due to high F&B prices. Family-friendly films drive higher concession sales, indicating a need for diverse programming.
Urban, youth-centric films such as Saiyaara and F1: The Movie are setting cinema cash registers ringing, bringing returns for multiplexes that are trying to attract audiences with discounts and buy-one-get-one offers. However, there is a downside to this trend: lower spending by individuals on food and beverages.
Multiplex chain PVR Inox reported a 1.4% dip in spend-per-head year-on-year for the second quarter of FY26, which means audiences, especially youngsters, may be lured by discounted tickets or niche love stories and social dramas, but cannot afford the exorbitantly priced F&B.
Even non-national chains and independent theatres say that the absence of family-friendly, universally appealing films leads to a drop in purchase of concessions. The younger crowd that comes in for content-driven cinema is unlikely to spend as much on food and drink.
While tickets can be priced as low as ₹99 on discount days in multiplexes, F&B including basic popcorn cola combos can cost upwards of ₹500.
“Family-friendly titles, festive releases and longer event films usually drive higher F&B sales because people arrive early, take intervals seriously, and spend as a group," said Bhuvanesh Mendiratta, managing director of Miraj Entertainment Ltd, which operates multiplex theatres. “When the mix tilts towards youth-skewed or action or horror titles, you often see faster in-and-out behaviour and smaller baskets."
Tier-2 or 3 markets react differently, Mendiratta added. Strong local language films can fill shows, but the per-head spending tends to be more value-conscious. So even with healthy footfalls, F&B spending per head can look soft if the slate skews away from family audiences for a few months.
On discount days, F&B spending per head is 20-25% lower, according to Devang Sampat, managing director of Cinepolis India.
Prioritizing value
"Customers who visit on these days prioritize value. However, admissions on these days rise by almost 1.8 times. The lift in footfalls more than balances the drop in spend per head," Sampat said. “The per-head spend is lower, but the overall revenue picture improves because of higher volume."
For PVR Inox, while individual spending on F&B fell to ₹134 in Q2 from ₹136 a year earlier, F&B sales for the quarter climbed 12.4% to ₹588.2 crore.
Offering discounts and removing entry barriers enables a certain section of the audience to watch films in cinemas but they will not spend on F&B as value for money remains a concern, independent distributor and exhibitor Akshaye Rathi said. This is especially true when there are food courts or other eateries within malls that are more affordable, Rathi added.
Exhibitors in tier-2 and tier-3 towns recognize that the absence of big-star, family films and discounted offers do not result in the kind of clientele that can pay easily.
“Families do tend to spend more and, in their absence, spend per head cannot shoot up," said Ashutosh Agarwal, the owner of Star World Cinemas in Uttar Pradesh. Agarwal added that they try to sell F&B at discounted rates when special offers for tickets are on so that people don’t feel cheated paying high rates for food and drink.
Key role
According to Gautam Dutta, CEO – revenue and operations at PVR Inox, strategic discounts play a key role in strengthening long-term customer engagement. They help broaden the audience base, drive repeat visits and increase overall admissions — which in turn boosts both F&B and advertising revenue.
“Our discounts and offers are aimed at making cinema-going more affordable and inclusive for everyone. While some guests may prioritize movie tickets over F&B, many continue to indulge in our diverse range of food and beverage options once they’re inside," Dutta said. “Spending per head can vary depending on the content and audience mix, but for us, the bigger priority is bringing people to cinemas and keeping the habit of moviegoing strong."
PVR Inox’s focus is on ensuring that more people experience films on the big screen because higher footfalls ultimately drive overall growth across categories, including F&B, Dutta added.
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