Why Is Popcorn So Expensive? 🍿📽
And why should you care!
Hey!
I hope all izz well with you :) Be it a nervous first date, chilling with friends or planning for a day out with family the first thing that comes to our minds when we think of entertainment is watching a movie at a theatre, right? So, now you tell me…
What I was up to: As you may have already guessed from the theme for this weekly newsletter, I was at the cinemas to watch Singham Again with friends and we all had a great time! But what pissed me off a bit was the snack bill, of course, and that led me to write this out for you. Aside from that, we were all busy working on FinCocktail’s brand new website that will be live for you to use in a jiffy!
Sayali, however, had one additional task: recording an insanely high-value, mindboggling episode for our podcast on the future of investing with Siddharth Vora. He is the Fund Manager and Head of Investment at PL Investment Pvt Ltd is a CFA and CA who has extensive experience in managing high-stake funds. The fund he manages is worth more than ₹500 Crores! Check out the episode here, this one is definitely a must-watch for long-term investors:
We are now registered mutual fund distributors!! If you would like to check it out, you can fill out this form and our team will get in touch with you soon :)
Market ka haal: Indian equity benchmarks, Sensex and Nifty 50, have been on a steady decline. Nifty is now in correction territory, down 10% from its September peak, while Sensex dropped by 8,300 points on Wednesday, the 13th.
Goes without saying- please don't panic buy/sell hun <3
Donald Trump’s electoral win led to a wave of capital rushing back to the U.S., weakening earnings growth here in India. Additionally, ongoing foreign portfolio investor (FPI) selling and a weakening rupee have continued to push the market downward for five consecutive sessions. With pricey valuations, lackluster earnings, ongoing selling by foreign investors, tensions in the Middle East, and uncertainty around the U.S. elections, the market’s feeling the heat from all directions.🔥 Plus, the bump in US 10-year yields suggests the FED might take its time with rate cuts, which isn’t doing any favors for emerging markets. 🌏
Humara Gyaan: The most annoying part of spending time and money to watch movies at a theatre has to be the overpriced snacks (… and terrible movies, film critic bro, I hear you) hai nah? It’s so unfair that a small tub of popcorn costs you as much as a dinner and is likely to be more expensive than the tickets! Let’s understand why.
Why Are Cinema Snacks So Expensive? 🤔
The high cost of cinema snacks is rooted in the economics of running a theatre, which incidentally comes with high operational costs for electricity, rent, and infrastructure. When you buy a ticket, a significant portion of that revenue is shared with film distributors, often leaving theatres with a slim profit margin from ticket sales alone. Maintaining a modern cinema environment with upgrades like reclining seats, advanced sound systems, insta-worthy interiors and all the good stuff that keep viewers coming back requires substantial investment.
To sustain those additional costs, multiplexes rely heavily on food and beverage sales, which have higher profit margins. Since theatres have limited competition inside their premises, they set premium prices on snacks to use that profit to balance their overall revenue. This is also why multiplexes do not allow you to carry your own snacks, beverages, and food from outside!
To Snack or Not to Snack? 🍿💭
When you’re sitting in that plush theatre seat, ready to dive into a film, it’s tempting to grab that oversized tub of popcorn. But, is it really worth it? Here’s a quick decision formula to check:
Rate the Movie Factor on a scale of 1 to 5: Is it a must-watch that would feel incomplete without popcorn?
Rate the Social Factor on a scale of 1 to 5: Are you with a person/people who will make snack-sharing a must and cost-sharing possible?
Add the scores together. If the score is 7 or above, go for it! Otherwise, maybe focus on the movie alone or wait for its OTT release :3
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Spending on entertainment is an investment in your well-being, but like any investment, it requires balance, and some thought. Becuase I think, the true cost of entertainment is not in the price tag, but in how it impacts your wallet in the long run. This will apply to all kinds of pleasure/entertainment like travel, hobbies, vices, and people you choose to spend your time and emotions on🧐💰✨
Here’s to (at least, some) thought🍻
Niyati❤️
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