Moneycontrol
Last Updated : Jul 19, 2018 08:51 PM IST | Source: Moneycontrol.com

After Maharashtra, Telangana asks multiplexes in Hyderabad to sell food items at MRP

During a meeting on Tuesday, the controller of State Legal Metrology department Akun Sabharwal directed multiplex theatres to this effect.

Moneycontrol News @moneycontrolcom

While the media and entertainment (M&E) industry has offered tremendous growth potential of late, one money-churning segment in this space is likely to experience headwinds.

Shortly after Maharashtra government announced that multiplexes will have to allow outside food in theatres and not overcharge for food items, Telangana has followed suit and has announced that food and beverages will be sold at MRP (maximum retail price) from August 1 in all multiplexes and single screen theatre canteens.

During a meeting on Tuesday, the controller of State Legal Metrology department Akun Sabharwal directed multiplex theatres to this effect.

However, popcorns will not be sold at MRP as it is not a packaged item.

From July 25, no food item will be sold in small, medium, big and jumbo categories but the weight of the food item will be mentioned.

In case multiplexes in Hyderabad do not adhere to the new rules, moviegoers can register a complaint on the toll free number 180042500333 or WhatsApp No.7330774444.

 

The exorbitant charges for food and drinks at multiplexes has been a contentious issue. After multiple complaints, the Bombay high court had earlier this year, said that food and beverage prices in theatres should be regulated.

However, what may come as a relief to moviegoers can put a lot of pressure on the theatre industry that gets a significant share of profits from this segment.

Multiplex chains have seen a steady increase in contribution from F&B in overall revenues over the years, said a 2017 FICCI-KPMG report.

To increase growth in this high margin revenue stream, these chains have expanded their F&B menu, introduced live kitchen counters, increased point of sales distribution all over cinema and used technology in the F&B process.
First Published on Jul 19, 2018 05:02 pm
Loading...
Sections
Follow us on
Available On