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How do you always end up spending twice the ticket amount at movie theaters? What are the tactics theater owners adopt that attract you in spending more and more.
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Remember going to a movie theater?
Total cost for JUST 1 MOVIE : ~INR 800
So how do you end up spending as much money on F&B when you just went to watch a movie?
Most movie theaters are designed so you have to walk past the food counter before you enter the actual theatre.
The food is bright, colorful, and, thanks to the glass cases, visible at every angle. You can see popcorn popping, stacks of sweets, and giant soda machines.
All of this is surrounded by big TV screens that show beautiful shots of soda and popcorn. Add to that the aroma of food.
Difficult to miss!!!
Read: Movie-making is more about strategy than creativity for Marvel
But do you know why movie theaters do that?
Because theatres makes almost 2X from F&B vs. what they do from tickets!! Let us look at the math!!
| # | Sample breakdown of the Revenue | INR |
| A | Ticket | 400 |
| B | Tax @ 30% | -120 |
| C | Net Collection (A-B) | 280 |
| D | Distributor Share @ 50% | -140 |
| E | Net Revenue (C-D) | 140 |
| F | Net Revenue % Ticket (Excluding other fixed cost) | 35% |
| # | Sample breakdown of F&B | INR |
| A | Price | 400 |
| B | Cost of F&B | -120 |
| C | Net Collection (A-B) | 280 |
| D | Margin (Excluding other fixed cost) | 70% |
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