At PVR INOX, Artificial Intelligence is now driving growth at the snack counters. With box office revenues and footfalls often unpredictable, the multiplex chain is focusing on food and beverages (F&B) as a key profit lever — powered by data and targeted digital outreach.
CEO Gautam Dutta said AI has reduced dependence on manual upselling at counters. Instead of relying only on staff prompts, personalised promo codes are sent directly to customers. Currently, the time between a customer entering a cinema and receiving a targeted offer is about 1.5 hours. Over the next 2 months, the company aims to cut this to 30 minutes to improve conversions.
“We want both volume and value to go up,” Dutta said.
PVR INOX’s official F&B strike rate stands at 33–34 percent, meaning about one-third of moviegoers transact at concession counters. However, actual consumption is much higher.
“On a blended basis (one person transacting for a family), nearly 80–85 percent of people are actually eating,” Dutta explained.
Using data infrastructure from Salesforce, the company has built an AI engine that tracks real-time consumption patterns. It identifies whether a customer buys only popcorn, skips beverages, or avoids food entirely.
“Gone are the days of blanket campaigns like Pepsi at Rs 90,” Dutta said. “If I know you come to my cinema but don’t eat, I can send you a targeted offer. If you only buy popcorn, I can nudge you to add a beverage.”
This forms part of its “Plus One” strategy — encouraging customers to buy 1 item if they buy none, and 1 more if they already buy multiple items.
The approach has improved F&B performance. In the December quarter, spend per head rose to Rs 146, up from Rs 140 a year ago.
Expansion beyond cinemas
For FY26, Dutta expects Rs 14 crore from PVR Café deliveries, Rs 8–10 crore from outdoor events and catering, and total outside-theatre F&B revenue of around Rs 30 crore.
The company has expanded into events such as the Indian Premier League, concerts, Navratri, Durga Puja and corporate gatherings. At Lollapalooza, it recorded popcorn sales worth Rs 7.5 lakh in a single day.
For IPL 2026, PVR INOX plans presence in 30–40 percent of matches, subject to commercial viability.
The company is also building standalone food brands. Its hot dog label Dogfather has launched 7–8 counters in South India and is expanding north. Other brands like Simply Sushi are being developed for independent growth.
Meanwhile, PVR Café operates on Swiggy and Zomato across 35–40 cities, with strong traction in Chennai and smaller towns.
Dutta describes the shift as “manufacturing revenues.”
“Earlier, we managed revenues — we waited for customers to come to us. Now we are going out and generating them,” he said.
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