High-Priced Food & Drinks Leading to "Customer Exodus"—What's Happening in Indian Theaters and Implications for Japan

2025年11月05日 16:57

1. What's Happening: The Crisis Awareness of India's Supreme Court and Voices from the Field

Concerns of the Supreme Court
"The skyrocketing prices of F&B in multiplexes, if left unchecked, will drive audiences away," stated the Indian Supreme Court. Reports indicate that a small-sized popcorn costs over 500 rupees, and with flavors, it reaches the 700 rupee range. A soft drink priced at 50 rupees outside is over 400 rupees inside the theater, and even a 500ml bottle of water can reach 100 rupees. With ticket prices ranging from 400 to 1,200 rupees, the perception of a movie as "a modest weekend entertainment" shifts to "a bit of a luxury."Deccan Chronicle
Insights from the Field (Director Teja)
"The exorbitant pricing of snacks is alienating the youth and middle class. Single-screen theaters aim for 'low margin, high volume,' while multiplexes target 'low audience, high profit,'" he points out. While popcorn costs around 100 rupees at single-screen theaters, it jumps to 500-700 rupees at multiplexes, and a family can spend nearly 1,000 rupees on soft drinks and nachos.Deccan Chronicle+2Deccan Chronicle+2
Operators' Rebuttal
"Providing a premium space and food requires appropriate pricing. Customers can choose their level of experience," they argue. This reflects the idea of pricing based on **"experience value (experience quality × time consumption)."**Deccan Chronicle

Audiences make decisions based on the satisfaction of **"Ticket + F&B = Total Cost."** When ticket price increases are compounded by F&B premiums, it easily exceeds the psychological threshold.
Price Elasticity is high among young people, students, and families, who compare with OTT (streaming) alternatives and home-cooked meals or convenience stores, quickly estimating the upper limit of the **"theater premium."**
The more empty seats are noticeable, the less "scarcity of experience" there is, and network externalities (the enjoyment of watching together) also diminish—resulting in further demand contraction.
(The above is a theoretical organization. It is consistent with voices from the practical field.)

The implementation of weekday discounts, re-screenings, and special days has recently led to a recovery in footfall (number of visitors) and some quarters have seen per capita F&B spending reach record highs. India's largest PVR Inox reported that by combining weekday discounts and re-screenings of classic films, alongside an increase in average ticket price (ATP), per capita F&B spending rose by 10% to 148 rupees.Reuters
National Cinema Day (such as a flat rate of 75 rupees) and other visible price reduction events have achieved massive mobilization, establishing themselves as measures that give audiences a **"reason to go to the cinema now."**The Times of India
However, factors such as lineup and early OTT releases also interact, causing demand to fluctuate. Price alone cannot explain everything.The Times of India

Many multiplexes have relied on F&B margins to compensate for low distribution shares. However, now that prices are "visible", the psychological resistance of "too expensive" directly impacts the willingness to visit through social media.
"Low audience, high profit"
may work for wealthy individuals who dislike crowds, but to fill thin weekday crowds, it is necessary to attract a **"broad segment with disposable time and income."** Here, the friction between supply-side pricing and demand-side experience value tends to intensify.Deccan Chronicle

(1) Enhance the Perceived Value of the Total Cost through "Visualization"

Provide an advance estimate of the "Ticket + F&B" total cost (e.g., a standard model for two visitors).
Promote a transparent pricing rationale (materials, labor costs, brand experience) and engage in **"storytelling of pricing."**

(2) Create "Ladders" of Value Bundles and Price Ranges

Expand the "entry" with step pricing from mini-share sets (small quantity, low price) to premium sets.
Design pricing by time of day (daytime, late) and combine with weekday promotions to target demand shifts (e.g., Tuesday Cinema, student discount happy hour). In India, Tuesday discounts and special price days have contributed to increased attendance.The Times of India

(3) Reinforce the "Texture" of the Experience Beyond Price

Enhance the multi-sensory experience with aroma, sound, and lighting, and alleviate queue stress (mobile ordering, pickup lockers).
Create the appeal of "only here" with collaborative products and local specialties
.
Reasons for repeat visits—stamps, coupons linked to visit data, and "movie × light meal" scene design (suggesting the "best time to eat" 15 minutes before the screening).

Anchor Design: While "showing" high-priced single items, make the middle SKU with good value/quantity balance stand out.
Based on prospect theory, create a sense of "gain" with **free small extras (e.g., one refill, mini popcorn).**
Perception of payment division: Reduce the amount of F&B prepayment (prepaid credit) when purchasing tickets to distribute the pain.
Menu Engineering: Use eye-tracking and price placement to guide customers to the SKU you want them to choose.

Early OTT releases diminish the "scarcity" of theaters, making it essential to readjust the window strategy. Enhance the "value of watching in theaters" (sound, big screen, sense of unity) while increasing irreplaceability through eventization (cheer screenings, live broadcasts of stage greetings).The Times of India

High-priced F&B does not equal immediate "bad." However, if the perceived value of the total cost collapses, audience departure becomes quickly visible.
Visible price reduction events, tiered bundles, enhancement of non-price experiences, and transparent pricing rationale are effective for balancing revenue retention and audience recovery.
The discussion in India is directly relevant to
Japanese multiplexes. The key is to redesign pricing