Hungry shoppers want good food. And it is likely that they will stick around and shop once they have eaten, which will benefit retailers and property owners who take note of them.
According to the small number of people attending the show, the largest gathering of business professionals in the world organized by the International Council of Shopping Centers and taking place this week in Las Vegas is food.
A study released Monday by commercial real estate services company Jones Lang LaSalle to more than 1,500 US adults in ICSC's RECON magazine in March revealed that 40% of customers would choose a shopping center to shop in. depending on the food available. And nearly 38% of people want healthy options when they go there.
Finding people in the mall with good food often means that they will spend more, too, discovered JLL.
Transactions are growing by more than 25% in shopping centers with quality dining options, according to JLL, and shoppers who eat at the mall are spending up to 15% more per trip.
"With a greater focus than ever on restaurant services in shopping centers, shopping center owners should not overfill the market with worn out formats," said JLL.
The American Dream shopping mall, developed by Triple Five Group and set to open this fall in New Jersey, is expected to feature the world's first all-kosher-themed food hall in the United States, as an example of a unique format put on the market.
Shopping center owners are building more and more restaurants with restaurants, sushi bars and upscale cafes led by chefs, while retailers like Payless ShoeSource, Gymboree and Charlotte Russe are closing the shop, leaving behind them empty buildings.
In 2006, an average shopping center in the United States spent approximately 10% of its square footage on food, beverage and leisure, according to Cushman & Wakefield, a commercial real estate services company. Last year, this statistic rose to about 20 percent, said Cushman. And we expect it to grow.
In the United States, Class A shopping malls, which earn more sales per square foot than their peers, the number is even higher – about 25% or more of square footage is dedicated to restaurants and not to chains clothing. strengthen.
"We made a 180-degree turn from that 10-year-old philosophy where [mall owners] put in a food court, but the buyers were mainly there to do their shopping, and the food court was just a means of refueling, "said Garrick Brown, real estate analyst for Cushman . " Now, I will go to the mall because there is really good food there. It is a reversal of the idea that food is an equipment. Now, food can generate traffic. "
But Brown does not talk about Aunt Anne's Sbarro pizza, pretzels, and Great American Cookies, though these are still considered childhood favorites.
Catering halls replace food courts, transforming to meet the changing tastes of consumers. What is the difference? A dining room is basically the "adult" version of its predecessor. Food is more trendy, healthier and often turns in space.
At the Gotham West Market, in New York, for example, restaurants serving all tastes, from seafood to hamburgers to tapas and tacos, move from month to month as the kitchens and preparation areas are shared and offer this flexibility, to independent restaurants.
Cushman estimated that in 2016, there were about 120 catering establishments – some still under construction and others already open – throughout the country. By the end of 2020, that number is expected to almost quadruple to 450, Cushman said. And while not all of them are in shopping malls, many of them are there.
Tysons Galleria shopping center in Brookfield, Virginia offers Washington's favorite restaurants on the third floor of the "A Taste of Urbanspace" shopping mall, such as Lady M cakes, Sen Khao noodles and ice cream jubilee . The Hudson Yards Mall in New York, developed by Related Cos. And Oxford Properties Group, home to a huge Spanish-themed food hall at the lowest level. Developer Taubman owns a food hall hosted by celebrity chef Michael Mina at his Beverly Center in Los Angeles.
"Five years ago, we would not have talked this way … no health and wellness, no food and entertainment," said Joe Coradino, CEO of the Real Estate Investment Trust. retailer and owner of the PREIT mall. "But the millennials want to eat and be entertained, and then they turn into Generation Z. And they become mall rats."
"Today, 25% of our portfolio is made up of restaurants and entertainment," Coradino said of its shopping centers, of which PREIT has more than 20 in the US, including the Cherry Hill shopping center. in New Jersey.