What Makes F&B Expensive In Cinemas And What Does The Supreme Court Have To Say About It?

According to the Supreme Court, the cinema halls have full rights to manage their affairs regarding fixing the terms and conditions related to Food and Beverage prices inside the premises of a theatre.

Movie watching experience increases with having food along with it. Popcorn is the most enjoyable snack while watching a movie, but people complain about it as it is becoming an expensive affair. Buying food in the cinema has now been out of the common man’s reach as the price seems to increase every other day.

Why are food and beverages (F&B) expensive in Cinemas?

  •  There is no need or incentive to match market price inside a cinema, as once a person enters a theatre, there is no outside competition.
  • According to what PVR Chairman Ajay Bijli told to Economic Times, the Indian theatre has seen a transition in these years. The theatres are changing from single screens to theaters, and the process is still underway. There is a cost difference between both of them.
  • A significant earning from the Box office is shared with studios or distributors, so the cinema halls rely on concession stand earnings for their revenue.
  • The primary spending in a cinema hall is on tickets, not food. People are not bound to take it. The cost of F&B is high as it stands as secondary spending.

 This is what India’s Largest Multiplex Chain, PVR, Chairman Ajay Bijli said:

  •  He believes India has a vast potential to grow in this market and is still under-screened.
  • When people feel happy about what they are getting, they don’t complain about the price, as expenses are a function of quality. After the theaters came, the expenditure increased, as earlier, there were single screens with one projection room, one sound system, and mostly no air conditioning, he stated.
  • He also said that people are happy with the expenses and the quality they are offered, or else they wouldn’t have done the kind of F&B sales they have achieved.

What does the Supreme Court have to say about it?

According to the Supreme Court, the cinema halls have full rights to manage their affairs regarding fixing the terms and conditions related to Food and Beverage prices inside the premises of a theatre. As said by the bench of the Supreme Court, a moviegoer has a choice not to consume the F&B as it is a secondary expense.

As Cinemas are private properties, the owners can make the rules and regulations. They have the right to decide whether a person can carry outside food. This is because people, after eating food, can ruin the chairs and the premises inside the theatre. So, the owners have the right to prohibit people from stepping inside a hall with outside food.

The court, however, has set aside the directions of the Jammu and Kashmir high court over this issue. As a petitioner complained about cinemas not allowing outside food, it was opposed by Senior Advocate K V Viswanathan. He said cinemas are not public properties and the owners have full rights to form rules. The owners have the right to set terms and conditions for the moviegoers as long as it is not contrary to the public interest, welfare and safety.