Mukta A2 Cinemas announces ₹99 cap on food and beverage prices

Multiplex chain Mukta A2 Cinemas has rolled out an offer to cap all food and beverage (F&B) products at ₹99.

The cinema chain said in a statement on Tuesday that the move aimed to remove one of the most common deterrents for moviegoers: high F&B prices.

“We believe that cinema is a universal form of entertainment and should be accessible to all. It's not just about offering films at a great price; it's about ensuring that the whole experience—from buying tickets to enjoying food and drinks—is affordable and enjoyable,” Satwik Lele, Mukta A2 Cinemas' chief operating officer, said in the statement.

Also Read: Multiplexes see F&B revenue growth beat ticket sales

“By capping food prices at ₹99, we are giving back to our customers and creating an environment where movie-watching becomes a celebration without the added financial burden,” he added.

Lele added that the company is confident that this initiative will set new standards in the industry and encourage more people to visit cinemas.

F&B business

To be sure, multiplex chains are seeing their F&B revenue grow faster than that from ticket sales, which shows that movies are failing to capture audience attention. 

Also Read: Multiplex chains renegotiate rentals, capex terms as business dives

PVR Inox, for instance, saw F&B grow 17% year-on-year in the March quarter of 2023-24. Earnings from ticket sales, on the other hand, rose 6% in the same period. 

Further, theatres have drawn much flak for exorbitant F&B pricing, which deters viewers from visiting cinemas even when tickets are discounted or otherwise in large groups.

According to trade experts, unlike ticket sales, F&B sales don't levy any tax. 

Also Read: Five charts tell the floundering story of multiplexes

However, many are quick to point out that core content must start performing for other revenue streams to sustain. “It is fine to try and monetize these sources well, but the urgency to watch a film will remain the backbone of the business. In the long run, even mall rents are dependent on admissions,” Girish Johar, film producer and trade and exhibition expert, had said in an earlier interview.