India's multiplex giants are facing a curious trend: while strategic discounts on tickets are successfully drawing younger audiences back to cinema halls, this very strategy is leading to a noticeable dip in spending on food and beverages (F&B) per person. This shift in consumer behavior is prompting a strategic rethink for exhibitors nationwide.
The Discount Dilemma: Footfalls Up, Spending Down
The leading multiplex chain, PVR Inox, reported a 1.4% year-on-year decline in spend-per-head for the second quarter of the 2025-26 financial year. This data point reveals a clear pattern. Urban, youth-centric films such as Saiyaara and F1: The Movie are driving ticket sales, especially with attractive buy-one-get-one offers and tickets priced as low as ₹99 on promotional days. However, the same audience is hesitant to open their wallets once inside.
The core issue is the stark price disparity. While entry is cheap, a basic popcorn and cola combo can easily cost over ₹500. "Customers who visit on these (discount) days prioritize value," explained Devang Sampat, Managing Director of Cinepolis India. He noted that on such days, F&B spending per head drops by 20-25%. However, admissions surge by almost 1.8 times, creating a volume-over-value scenario.
Content is King for Concession Sales
Industry executives highlight a direct link between film genre and snack sales. Family-friendly blockbusters, festive releases, and longer event films traditionally drive significantly higher concession revenue. "Families do tend to spend more and, in their absence, spend per head cannot shoot up," stated Ashutosh Agarwal, owner of Star World Cinemas in Uttar Pradesh.
Bhuvanesh Mendiratta, MD of Miraj Entertainment Ltd, elaborated on the audience behavior. He said family audiences arrive early, take intervals, and spend as a group. In contrast, the youth crowd watching content-driven social dramas or horror titles often exhibits "faster in-and-out behaviour and smaller baskets." This trend is echoed by independent distributors, who note that the absence of universal, family-appealing films directly hurts concession stands.
Even with healthy footfalls from strong regional language films in tier-2 and tier-3 markets, the per-head spending remains value-conscious, keeping F&B revenue soft.
Strategic Balancing Act for Exhibitors
Exhibitors are responding with tailored strategies. Some, like Agarwal, offer discounted F&B combos alongside ticket promotions to prevent customers from feeling overcharged. The overarching goal, however, is building long-term habits. Gautam Dutta, CEO of PVR Inox, emphasized that strategic discounts are crucial for broadening the audience base and driving repeat visits.
"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. He stressed that the primary focus is on bringing people to cinemas, as higher overall footfalls ultimately boost growth across all revenue categories, including F&B and advertising.
The numbers underscore this complex picture. For PVR Inox, while the individual F&B spend fell to ₹134 in Q2 from ₹136 a year ago, the total F&B sales for the quarter actually grew by 12.4% to ₹588.2 crore, powered by increased volume. The challenge for multiplexes now is to convert the value-seeking ticket buyer into a more relaxed spender, possibly by reimagining the F&B value proposition itself.
