Multiplex major Inox Leisure has partnered with food delivery apps, including Zomato and Swiggy, to deliver food and beverages products to customers to their homes. The COVID-19 pandemic has given a severe blow to cinema operations across the country.
Alok Tandon, CEO – INOX Leisure Ltd, told PTI that they are aggressively growing their food and beverages (F&B) segment and are extremely optimistic about the new F&B road map with the introduction of some new processes and exciting innovations. It includes making food available on online food ordering platforms, Swiggy, Zomato, Dineout & Thrive, and a few more. “With a comprehensive road map, we look to cater to newer consumer segments, besides strengthening the F&B revenue streams,” he said.
The company expects contribution of F&B to its revenue to increase from 19% in the previous fiscal to up to 35% in the future. INOX had reported a revenue of Rs 148 crore in the financial year ended March 31, 2021, as against a revenue of Rs 1,915 crore in the year 2019-20.
“With the introduction of new innovations, including the association with Swiggy and Zomato, we are planning to increase the F&B contribution to revenues to 30-35% in the future,” Tandon said. “With the introduction of a new range of food offerings, we are optimistic that our customers will spend more on food, increasing the spend per head and potentially our revenue through F&B.” In the previous two financial years, contribution of F&B in total revenues had been in the range of 26%. The company attributed decline in F&B contribution in FY21 at 19% to the COVID induced lockdown.
Tandon said the whole rationale behind associating with food aggregator platforms like Swiggy and Zomato is to improve Inox’s reach and better connect with their non-cinema consumers. “The idea is to tap a new consumer base that buys our food products even if they are not watching a movie. It is a major step towards taking our food beyond cinemas,” he explained. “In the post pandemic era, we know that consumers are going to rely on brands that they trust, especially in services like F&B. We are looking forward to leverage this connect and trust.”
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The company is also working on expanding its menu and introducing new meal options such as Pulao, Biryani, Dal Makhani, Rajma-rice, Chana-rice, Pasta and Garlic Bread. “We will see the introduction of ready-to-eat products as an opportunity to innovate further and keep expanding our range in a consistent manner,” Tandon said.