Popcorn goes smart: PVR INOX bets on AI for F&B upsell, more turnout at snack counters

At PVR INOX, Artificial Intelligence (AI) is becoming the new director behind a fast-growing F&B (food & beverages) storyline.

While box office collections and footfalls remain unpredictable, the multiplex major, often giving many food brands a run for their money, is now leaning on technology to power a blockbuster run at the snack counters.

AI has reduced reliance on staff for upselling, PVR INOX CEO Gautam Dutta told Moneycontrol, adding that instead of depending solely on counter prompts, personalised promo codes are pushed directly to customers.

Currently, the lead time between customer entry and targeted offers is about 1.5 hours. Within two months, PVR INOX expects to cut this to 30 minutes — a move Dutta calls potentially important in improving conversions.

“We want both volume and value to go up,” Dutta said, explaining how the company is rethinking concession sales inside cinemas.

AI nudges, real-time offers

Currently, PVR INOX’s official F&B strike rate stands at about 33–34 percent — meaning roughly a third of cinema-goers transact at the concession counter. But the real consumption figure is much higher.

“On a blended basis (one person transacting for a family), nearly 80–85 percent of people are actually eating,” Dutta explained.

The challenge lies in improving conversion in specific segments — such as morning shows, where audiences tend to be more value-conscious.

This is where AI comes in.

Working with Salesforce’s (an AI-powered Customer Relationship Management platform) data infrastructure, PVR INOX has built an AI-driven engine that tracks consumption behaviour in real time. From the moment a customer enters a cinema, the system recognises patterns: whether they usually buy only popcorn, skip beverages, or avoid food altogether.

“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.”

PVR INOX calls this its “Plus One” strategy where the company prompts a customer to buy one item if he doesn't buy anything and one more if they buy three items.

Interestingly, AI has not reduced marketing spends. Instead, it has made them more precise. The company is spending less on traditional media, such as print, radio, and outdoor, and more on owned media and personalised digital outreach.

The result: a stronger F&B performance. In the December quarter, PVR INOX’s spend per head rose to Rs 146 from Rs 140 a year ago.

Taking F&B beyond cinema

Along with AI boosting in-cinema sales, the cinema chain's big structural play also lies outside the theatre.

For FY26, Dutta expects Rs 14 crore from PVR Cafe deliveries, Rs 8–10 crore from outdoor events and catering and total outside-theatre F&B revenues of around Rs 30 crore.

PVR INOX has aggressively stepped into outdoor and event-based catering.

From Indian Premier League (IPL) matches and stadiums to concerts, Navratri and Durga Puja festivals, and even corporate gatherings, the company sets up popcorn, nachos, and hot dog stalls.

“At Lollapalooza, we did popcorn sales worth Rs 7.5 lakh in a single day,” Dutta said.

For IPL 2026, PVR INOX will be present in roughly 30–40 percent of matches, depending on commercial viability. Cinema managers bid for stalls and lead these initiatives — using existing infrastructure rather than hiring new teams.

Dutta calls this shift “manufacturing revenues.”

“Earlier, we managed revenues — we waited for customers to come to us. Now we are going out and generating them,” he said.

More F&B strategy brewing

In addition, recognising that the PVR brand is deeply associated with cinema, the company has started creating standalone food brands that can operate independently in malls and food courts.

The most visible example is Dogfather — its hot dog brand.

Two years ago, a hot dog came in standard PVR packaging. Today, it carries the Dogfather branding, making it appear like a standalone food label.

The brand has already launched 7-8 counters in the South and is expanding into northern malls with additional kiosks. Other food brands such as Simply Sushi are also being nurtured for standalone growth.

Another contributor is PVR Café, its delivery-first F&B arm operating on Swiggy and Zomato in around 35–40 cities.

Chennai has emerged as a strong market, driven by signature products such as caramel croissants and cold coffee, Dutta said, adding that smaller towns have also shown robust traction.

For outdoor F&B sales, Dutta sees significant headroom for growth over the next two years as brands mature and teams grow more confident in executing outdoor initiatives.