Shringar, which is into film distribution and multiplexes (under the Fame brand), is now planning to launch food courts under the brand name of Via 1 Food Street.
MUMBAI: If you can’t beat them, then join them. This is exactly what Shravan Shroff, managing director, Shringar Cinemas is doing.
In fact, Shringar, which is into film distribution and multiplexes (under the Fame brand), is now planning to launch food courts under the brand name of Via 1 Food Street. This will be done through a wholly owned subsidiary Oxford Multiplexes & Cinemas.
The reason, cafeteria business in multiplexes situated in malls is under siege from food courts in the complex. So far, cafeterias have been notching up 25% of the total revenue earned by multiplexes. This is down by 10% with the increasing footfalls in malls.
“At times, in malls there are food courts even on the same floor as the multiplex. So, we’ve decided to be in the food court business, which is complements the multiplex business,” said Shroff. For multiplexes, the food and beverage (F&B) business soups up 50 to 65% of gross profit. “But the success of such a move will depend on the cost involved and potential return,” said an analyst tracking the sector.
The company is planning to open nine new multiplexes this year, of which six would be in malls. It is also considering four more food court properties nationally. It has appointed Rishi Negi, former chief operating officer of Pizzeria Restaurants, as chief executive officer for Oxford Multiplex.
According to Shriram Krishnan, chief financial officer of Shringar Cinemas, while the food courts will initially nestle in its Fame multiplexes, it will also pursue other opportunities such as Stand alone outlets in malls even outside Fame.
“We have launched the new business also as part of our de-risking strategy. It will help arrest the revenue volatility of the film exhibition business and maximise our return on investments,” added Shroff.
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