India’s leading multiplex chain, PVR Inox, which is diversifying into the food and beverage sector, is set to open its first food court in December this year, the company stated in a BSE filing. This venture is a collaboration with Devyani International, the operator of brands such as KFC and Pizza Hut.
In its Q2 FY25 financial statement, PVR Inox noted, “During the current quarter, a company namely ‘Devyani PVR Inox Private Limited’ has been incorporated on July 26, 2024, inter alia to undertake the business relating to development and operation of food courts situated within shopping malls in India.”
A Moneycontrol report quoted chief financial officer Gaurav Sharma saying that the company plans to launch three to four food courts this financial year, with an additional eight to 10 by the next financial year. He explained that the company’s current F&B revenue is solely from post-ticket sales within cinemas. The joint venture with Devyani, a company with brands like Pizza Hut, KFC, and Costa Coffee, aims to expand beyond cinema halls and serve customers outside this space.
Sharma highlighted that there is currently no branded food court chain in the country, and their goal is to provide a branded food court experience. He emphasised that the food court business would remain separate from the in-cinema F&B revenue. “The purpose of this initiative is to take our F&B operations beyond the cinema sector,” he said.
PVR Inox expanding beyond cinema
PVR Inox has employed various strategies to grow its F&B business, including launching its gourmet popcorn brand, 4700 BC, on online platforms, and partnering with Zomato for in-cinema food delivery.
In the report, Sharma also noted that online food delivery currently accounts for less than 1 per cent of PVR Inox’s F&B sales. He mentioned that they are in discussions with additional online delivery platforms like Swiggy to boost F&B revenue from digital channels.
To drive growth in the F&B segment, co-chief executive officer Gautam Dutta stressed the need to improve online food sales. He explained that working with delivery platforms like Zomato presents logistical challenges, such as delays caused by cinemas being located on higher floors. Dutta added that in the South, the company has been more successful with home delivery because cinemas can easily bring food down to the box office for quick collection.
PVR Inox’s Q2 FY25 financial performance
Despite efforts to grow the F&B segment, PVR Inox posted its third consecutive quarterly loss, largely due to a lacklustre Bollywood slate, apart from a few major hits, and the increasing popularity of streaming services, which has kept audiences away from theatres.
This trend has affected both box-office revenue and food and beverage sales at PVR Inox. The company, which emerged from the merger of PVR and Inox, recorded a consolidated net loss of Rs 11.8 crore for the quarter ending September 30, compared to a net profit of Rs 166 crore in the same period last year.
First Published: Oct 16 2024 | 9:58 AM IST