Maharashtra Government Asked Multiplexes to Allow Bringing Own Food

Maharashtra Government Asked Multiplexes to Allow Bringing Own Food

The Maharashtra government on Friday announced that moviegoers will be free to carry outside food inside the multiplex from August 1st.

The government further directed the multiplex owners that there should be no difference in the MRP of food products sold outside and inside multiplexes in the state.

The decision had got everyone talking on social media. While most supported the decision of not paying a steep price for products, they were little skeptical about the viewers carrying their own eatables.

The food and beverage segment is a high margin business, accounting for 35-40 percent of revenues for a multiplex.

In order to diversify revenue sources, film exhibitors have been focussing on sources such as food and beverage sales, advertisement and convenience fee.

The share of F&B has been going up consistently in the operating income of multiplexes.

“The share of non-film exhibition revenues has increased from 32 percent in FY11 to 40 percent in FY16 in the total operating income,” research firm ICRA.

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