Firstly, let’s recall why popcorn (or nachos, if you like it noisier, spicier) is so expensive at multiplexes.
It has been established that movie theatres depend on the sale of utterly unhealthy yet addictive food and drink items to keep their businesses viable.
Prof Richard ‘Popcorn’ McKenzie from University of California-Irvine has calculated that the price tag on popcorn buckets represents a markup of roughly 1,300 per cent on the actual cost of production.
As per Stanford GSB and the University of California, Santa Cruz research, food and beverage revenues make for only about 20 per cent of gross revenues but they account for almost 40 per cent of profits for theatres in the US.
Secondly, despite being the world’s largest producer of films, India is witnessing a paradoxical situation of a struggling industry. As single-screen cinema halls continue to shut down across the country, multiplexes struggle to keep afloat amidst surging operating costs and stiff competition from streaming services OTT platforms. However, it is speculated that 2022 revenues of multiplex chains sit at an all-time high of over ₹6,000 crores, profits could be another story altogether.
But what has Shahrukh Khan got to do with any or all of it?