“Why does popcorn cost so much at the movies?” The answer to this big looming question that has baffled cinema lovers for years and sparked many tempers (and even threats and lawsuits in more recent times) – it turns out is one that is fascinatingly economics-driven and suggests that there is method to the multiplex madness, after all.Multiplexes say they rely on concession stands to make their businesses sustainable. It keeps ticket prices lower, which opens up the plush plex experience to more price-sensitive people while the premium on frills translates into better profit from those wil- ling to fork out extra for corn and cola.A checklist of examples and best practices such as this have recently been handed to the state CMO in a letter from the Multiplex Association of India, TOI has learnt. The letter argues that allowing cinemagoers to bring in outside food and beverages could pose safety and security threats, health and hygiene hazards and wreck the viability of the business model on which multiplexes run, thus forcing them to shut down.The usually reticent multiplexes were compelled to react after a disgruntled Jainendra Baxi filed a PIL last year in the Bombay High Court fed up of being frisked at movie hall entrances for food and drinks, a prohibition which he felt flouted an individual’s basic right to life. The PIL challenged the ban on outside victuals at multiplexes across Maharashtra while the court hauled up the state government to check the "exorbitant" rates at which food and beverages were being sold, often costlier than the movie ticket itself.“Multiplexes operate on slender profit margins. Making money on popcorn in order to run these high-mainte- nance theatres has been an integral part of the business model across the world for de- cades,” says a representative of one of India’s leading mul- tiplex chains, on condition of anonymity.“Audited accounts of ma- jor multiplex chains show that theatres make as little as 5% profit, and food and beve- rage revenues account for about 25 - 30% of a multiplex operator’s revenues. A dent in that would wipe out even this meagre return and make it unaffordable for multiplexes to remain in business,” he states.In 2001, the Maharashtra government had exempted multiplexes from entertainment tax completely for the first three years and up to 75 % for two years thereafter to aid the movie industry. However, an implementation of 28% GST upped concerns. “With over 2 billion tickets sold an- nually, the cinema exhibition sector offers a backbone to the entire film industry contributing 70% of its revenues. How can they classify it in the same tax bracket as casinos, horse betting and sporting events? Fifty percent of what remains after paying GST goes to distributors and the rest covers electricity, manpower, airconditioning and upkeep of the hi-tech facility. What are we left with?” he says.While multiplexes agree that there are no laws to restrict patrons from bringing in their own nibbles and drinks into cinemas, they believe that such a move could pose major security risks. Citing past instances of guns and explosives smuggled into theatres in food containers including the 2005 blast at Liberty Cinema in Delhi when a bomb carried into the cinema in a tiffin box had exploded, killing one person and injuring 49, multiplex sources contend: “Cinemas don’t have airport-like technology or staff to detect all potential safety threats. It would also become very easy to slip in petrol, acid and alcohol disguised as water in bottles. Even airlines do not permit liquids above 100ml, despite their advanced security systems.”Lifting the restriction on outside eatables would reduce health and hygiene levels too, they argue. “We provide essential filtered water free of cost. But cinema food is prepared in a manner that is not too pungent, noisy or of a texture that would soil carpets or seats. All that would change if patrons were allowed to bring in their own fare. Turnaround time between two shows in a cinema is limited, and it would be impossible to maintain a clean, healthy and hygienic environment – that is a multiplex’s strong suit,” he adds.As multiplexes continue to feel the pinch - or rather the punch - of the PIL they are hopeful that the government will rethink any call for change to current processes, and also keep in mind the "private and contractual nature of a movie ticket" that binds a patron and a theatre owner in a voluntary agreement to certain terms and conditions of admission, waiving which would unlawfully impinge on their fundamental right to business. “In a free market economy, prices are decided by demand and supply. It’s the same reason why a bowl of dal at a luxury hotel is differently priced than a dhaba or why ink cartridges cost as much as printers. Any attempt by the government to control prices would destabilize business models,” cautions the multiplex representative suggesting that a move in such a direction would compel existing cinemas to fold up.