CINEMA XXI as a provider of film screening services, has now recorded very popular sales of food and beverage products. The profits obtained from selling food and drinks at the cinema have increased by almost 30%.
In the first semester of 2023, Cinema XXI managed to generate a total profit of IDR 2.4 trillion. This business line’s revenue grew 29.3% compared to the same period in 2022.
Cinema XXI main director Hans Gunadi said that food and drinks sold in cinemas have a significant contribution to revenue growth for Cinema XXI. In 2023, Cinema XXI will receive total revenue of IDR 5.2 trillion or an increase of 18.9% compared to previously, namely IDR 4.4 trillion.
As we know, food and drinks at the cinema can be said to be expensive, but the profit margin from selling food and drinks can reach 70% and makes this business very profitable. The profit margin for tickets is only around 30%, which means that XXI cinema can make twice the profit from food and drink sales than ticket sales.
When we visit the XXI cinema or other cinemas, most of them apply rules prohibiting customers from bringing food and drinks from outside. This is enforced because the main source of profit for cinemas is food and drink revenue.
Apart from that, with this increase in revenue, Cinema XXI is committed to increasing the number of screens. Since 2023, Cinema XXI is informed that it has opened 18 new cinema locations with 75 screens throughout Indonesia.
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Currently Cinema XXI has 240 cinemas operating with a total of 1,280 screens in 60 cities or districts throughout Indonesia. This success is supported by a focus on ticket sales, food and drinks, advertising, and digital platforms.
There are several foods and drinks that sell best in cinemas, namely popcorn with many variations, burgers and hotdogs, French fries, as well as soda drinks and pandan milk iced coffee. These foods and drinks are the foods and drinks that are most in demand by customers.
Cinema XXI strives to continue to expand so that it can provide wide access for the public to watch their favorite films. With a commitment to strengthening business fundamentals, Cinema XXI will continue to innovate and provide the best experience for the audience. (Z-3)
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