PVR INOX Seeks Alcohol Licences in Premium Theatres to Counter Falling Footfalls

India’s leading multiplex chain, PVR INOX, is taking a bold step to elevate the luxury cinema experience by seeking liquor licenses for select premium properties in Gurugram and Bengaluru. The initiative is part of the company’s strategy to counter declining footfalls, enhance per-head revenue, and differentiate the in-theater experience from at-home streaming services.

With the rise of OTT platforms and changing entertainment consumption habits, traditional movie theaters are under increasing pressure. In 2024 alone, PVR INOX reported a 6% decline in overall footfall, as per company disclosures. To adapt, the company is doubling down on premium offerings and upscale services to appeal to an audience that’s seeking more than just a film screening.

Premium Formats with Alcohol Lounges

Under this initiative, alcoholic beverages will be served exclusively in the lounge areas of high-end formats such as Director’s Cut and Maison INOX. These are PVR INOX’s luxury screening formats, already known for their plush seating, gourmet menus, and elevated ambiance.

It’s important to note that alcoholic drinks will not be allowed inside movie halls, in line with the Cinematograph Act and state licensing regulations. Patrons will only be able to enjoy beverages before or after the movie, within designated lounge zones. This format is already in practice at a few locations in Delhi and Mumbai and is now being explored further in other major metro markets.

According to media reports, the company is currently in the process of applying for new licenses in cities like Gurugram and Bengaluru, two regions with a growing demand for premium cinema experiences and a relatively liberal stance on urban nightlife.

Enhancing the Movie-Going Experience

The rationale behind this move is clear — offer more value to consumers and increase spend per head (SPH). PVR INOX is aiming to transform movie going into a social and lifestyle experience rather than just a film screening. This could include pre-show drinks, gourmet meals, and a more relaxed, luxurious environment for select customers.

In an interview with NDTV, Abneesh Roy, Executive Director at Nuvama Institutional Equities, explained that this strategy presents “an attractive opportunity to increase SPH” in high-end segments. He also pointed out that while the plan may be lucrative, the cost and complexity of obtaining licenses across states remains a hurdle. Since alcohol is a state subject, licensing procedures and fees vary widely and can be prohibitively expensive in certain jurisdictions.

Public Reaction and Controversy

While the initiative could boost revenue and revive interest in theaters, it has sparked significant debate among moviegoers and social commentators. Critics argue that introducing alcohol to the cinema environment may compromise safety and comfort, particularly in a country like India where drinking culture is still evolving and often comes with societal taboos.

Concerns have been raised about family audiences and solo female moviegoers, who may feel uncomfortable sharing public entertainment spaces with alcohol-serving zones. Even with strict ID checks and monitoring, enforcing behavior standards and preventing misconduct could be challenging, especially in late-night shows or crowded screenings.

Another layer of criticism relates to the growing class divide in entertainment access. As premium services become more exclusive, offering luxury lounges and alcohol, regular moviegoers may find themselves priced out or culturally alienated from the broader cinema experience. This could further stratify the audience base, raising questions about inclusivity in public leisure spaces.

A Broader Strategy to Woo Back Audiences

The alcohol initiative is just one part of PVR INOX’s larger effort to revamp its offerings and regain lost ground. The chain recently launched ‘Blockbuster Tuesdays’, where ticket prices are slashed to as low as ₹99–149 across India, a move aimed at drawing in larger weekday crowds. This dual-pronged strategy — catering to both mass-market and premium consumers — reflects the company's attempt to balance affordability with exclusivity.

However, PVR INOX also faced setbacks in recent months. In March 2025, the company was fined ₹1 lakh by a consumer court in Bengaluru for excessive advertisements and delayed screenings, adding pressure to improve service quality and regain consumer trust.

Despite declining footfall, the company has reported a 3.9% increase in profits for Q3 FY25, amounting to ₹68.1 crore. This suggests that while audience numbers are shrinking, strategic pricing and premiumization may still be helping the company stay financially afloat — at least for now.

Read more: Johnnie Walker Black Ruby: The Berry-Inspired Whisky Redefining Travel Retail

Conclusion

The decision by PVR INOX to serve alcohol in premium theater lounges is a calculated gamble — one that reflects the challenges facing modern multiplex chains. As streaming platforms continue to redefine home entertainment, cinemas must innovate to stay relevant. Offering alcoholic beverages in exclusive lounge areas could appeal to a niche demographic seeking luxury, but it also raises valid concerns around safety, inclusivity, and cultural fit.

As the rollout of this initiative expands and state licenses are granted (or denied), the industry will be watching closely. Will this strategy succeed in bringing audiences back to the big screen — or will it widen the gap between different types of moviegoers?