1. Problem Understanding
We want to estimate the yearly revenue of a single cinema hall (not a multiplex), with:
- 3 screens
- Moderate ticket pricing
- Typical food & beverage (F&B) sales
This is a business guesstimate using a capacity → utilization → pricing → revenue approach.
2. Approach Summary
Screens → Shows → Seats → Occupancy → Ticket Price → Ticket Revenue → F&B Revenue → Total Annual Revenue
3. Step-by-Step Solution
Step 1: Assume cinema size
A typical standalone cinema has:
- 3 screens
- 200 seats per screen
Total seats = 3 × 200 = 600 seats
Step 2: Shows per day
Average: 4 shows per screen per day
Total shows = 3 × 4 = 12 shows/day
Step 3: Occupancy rate
Occupancy varies:
- Weekdays: 20–30%
- Weekends: 60–80%
Use blended average: ~40%
Seats filled per show =
200 × 40% = 80 seats
Daily footfall =
80 seats × 12 shows = ~960 viewers/day
Round to: ~1,000 viewers/day
Step 4: Ticket price
For a normal cinema (non-PVR/INOX), assume:
₹200 per ticket (reasonable blended average)
Daily ticket revenue =
1,000 viewers × ₹200 = ₹2,00,000/day
→ ₹2 lakh/day
Annual ticket revenue =
₹2 lakh × 365 ≈ ₹7.3 crore/year
Step 5: Add F&B (high-margin revenue)
F&B revenue per person: ₹60–₹100
Use ₹80 per viewer.
Daily F&B revenue =
1,000 × ₹80 = ₹80,000/day
Annual F&B revenue =
₹80k × 365 ≈ ₹2.9 crore/year
Step 6: Total annual revenue
- Ticket revenue ≈ ₹7.3 crore
- F&B revenue ≈ ₹2.9 crore
Total ≈ ₹10–10.5 crore per year
4. Final Answer
A typical 3-screen local cinema earns around ₹10 crore per year in revenue.
(Actual range: ₹8–12 crore, depending on occupancy and pricing.)
5. Interviewer-Ready Summary
- 3 screens × 4 shows/day = 12 shows/day
- 200 seats/screen → 600 seats total
- Occupancy → ~40% → ~1,000 viewers/day
- Ticket price → ₹200 → ~₹7.3 crore/year
- F&B → ₹80/viewer → ~₹2.9 crore/year
- Final: ~₹10 crore annual revenue