Food and Premium Experiences Drive Multiplex Revenue Beyond Ticket Sales

The Indian multiplex industry is undergoing a transformation as operators shift their focus from ticket sales to food and beverage (F&B) revenues. This change is driven by the need to maximize profitability amid affordability constraints and selective consumer behavior. Multiplex chains are now prioritizing F&B as a key revenue driver, with significant growth in this segment outpacing ticket sales. ## Rising F&B Revenues Outpace Ticket Sales PVR INOX, India's largest multiplex operator, reported a 16.7% year-on-year increase in F&B revenue to Rs 558 crore in Q1 FY27, slightly higher than the 15.9% growth in ticketing revenue to Rs 837 crore. F&B now contributes roughly 34% of the company's total operating revenue of Rs 1,622 crore. This trend is mirrored in consumer spending patterns, with admissions rising 8% year-on-year to 36.6 million and average F&B spend per head climbing 9% to Rs 161. The average ticket price also increased by 8% to Rs 273. Cinepolis India, another major player, sees F&B contributing around 32-33% of its revenue, with expectations to rise to 38-40% over the next few years. Ashish Misra, Head of Commercialisation at Cinepolis India, highlights the importance of the ratio of F&B spend to ticket spend, which is currently around 55% in India compared to over 100% globally. This indicates significant potential for growth in the Indian market. ## Premium Food and Regional Offerings Drive Growth The shift in consumer expectations is evident in the types of food offerings now available in multiplexes. Traditional popcorn and beverages are being supplemented with premium options such as loaded nachos, gourmet pizzas, burgers, wraps, and sandwiches made fresh in-house. Miraj Entertainment Ltd, for instance, has seen F&B revenue increase from roughly 30% of total revenue three years ago to around 34% today, with a target of 38-40% over the next three years. Sameer Munshi, COO of Miraj Entertainment Ltd, notes that premium food is a significant growth driver as consumers seek a complete experience beyond just watching a movie. Cinepolis is also focusing on regionalization, combining a standardized core menu with local favorites and gourmet regional offerings. This strategy has proven successful, with regional favorites consistently outperforming expectations. ## Beyond Food: Brand Partnerships and Experiential Platforms The evolution of cinema F&B is not just about food sales but also about creating an experiential platform where brands can integrate directly into the customer journey. Cinepolis has partnerships spanning F&B, FMCG, banking, fintech, payments, and delivery platforms. The focus is shifting from simply adding partnerships to creating deeper integrations that enhance the consumer experience. Ashish Misra emphasizes the value of cinema as a high-attention environment where consumers are not multitasking, making it an attractive space for brands. F&B allows brands to participate directly in the transaction, offering multiplexes the opportunity to monetize through tickets, F&B, advertising, loyalty programs, brand activations, and payment partnerships. Miraj Entertainment Ltd expects advertising and brand partnerships to potentially increase from the current 7-10% of revenue to 15-18% by 2030 as cinema chains increasingly monetize footfall, dwell time, and consumer data. ## Strategic Focus: Footfalls vs. Per-Capita Spending The strategic question for cinema operators is whether growth will come from adding more screens or extracting more value from every visitor. Cinepolis believes in a combination of both, with higher occupancy creating more opportunities for food sales, loyalty, and repeat visits. Miraj, however, sees a stronger case for increasing per-capita spending, as an additional Rs 100 spent by an existing visitor can flow more directly to the bottom line than additional occupancy, which also brings incremental operating costs. This shift is changing the design of the cinema experience itself, from menus and premium seating to regional food, branded collaborations, digital ordering, and lobby experiences. As PVR INOX returned to profitability with a consolidated net profit of Rs 56.5 crore in Q1 FY27, the simultaneous improvement in admissions, ticketing, and F&B spend points to a broader shift in cinema monetization.