PVR reduces prices of food items at theatres after social media uproar; focuses on Rs 99 combo offer, but conditions apply

The Indian multiplex giant, PVR Cinemas, has recently announced a significant decrease in its food and beverage prices served at the chain of multiplexes and PVR-INOX cinemas, after a social media uproar over exorbitant bill for popcorn and cold drinks. Taking note of the backlash, PVR Cinemas acknowledged the feedback and decided to review its pricing strategy.

The backlash was most noticeable when a Noida resident shared an image of a bill showing that he had been charged Rs 360 for a Pepsi and Rs 460 for 55gm popcorn  at a PVR Cinema. The tweet went viral, igniting debates on the high prices charged by multiplexes for food and beverages.

Rs 460 for 55gm of cheese popcorn, Rs 360 for 600ml of Pepsi. Total Rs 820 at @_PVRCinemas Noida.

That's almost equal to annual subscription of @PrimeVideoIN.

No wonder people don't go to cinemas anymore. Movie watching with family has just become unaffordable. pic.twitter.com/vSwyYlKEsK

— Tridip K Mandal (@tridipkmandal) July 1, 2023

Apart from lowering their food and beverage costs, PVR Cinemas also introduced new food and beverage (F&B) offers across the country, including attractively priced food items, combos, and 'bottomless popcorn and Pepsi' offers.

New food offers at PVR cinemas

The multiplex chain revealed on Wednesday that during weekdays, from 9 am to 6 pm, they will be offering various items like burgers, samosas, sandwiches, and Pepsi for just Rs 99. For the weekend, PVR Cinemas is introducing an exciting "bottomless popcorn and Pepsi" deal with unlimited refills, albeit without revealing the cost for the same.

"We at PVR believe that every opinion matters and it must be respected. We have this update for you and for every moviegoer in India,” PVR Cinemas communicated via a tweet on July 12.

We at PVR believe that every opinion matters and it must be respected. We have this update for you and for every moviegoer in India #PVRHeardYou https://t.co/rrBL3xFUJs pic.twitter.com/PsOvxxqAaj

— P V R C i n e m a s (@_PVRCinemas) July 12, 2023

Food and beverage prices to improve profit margin 

Despite the recent GST Council's decision to slash taxes on food and beverages sold in cinema halls from 18 per cent to 5 per cent, PVR Cinemas initially did not adjust its food and beverage costs. With food and beverage spending accounting for nearly 52 per cent of a film's ticket price, Nitin Sood, CFO of PVR Inox, is of the opinion that F&B revenue forms an essential part of a cinema's earnings. Competing against cheaper movie viewing options, cineplexes like PVR are looking to improve their profit margin through services like F&B, so that the ratio is more in line with developed economies where F&B can be as much as 70 per cent of a person’s spending at the movie theatres.