Navigating opportunity, identifying risks and challenges, and planning successfully for the future of food service within the shopping center space requires careful consideration.

April 19, 2017 Published by CP Voice

The global retail and leisure landscape is undergoing fundamental change–lasting and structural, driven by macro demographic trends, technological advancements and everevolving consumer expectations. The combination of these trends and expectations is having a huge impact on both the retail and foodservice sectors globally, in terms of consumer spending patterns and space allocation. Across most countries, consumer spending on foodservice has been outpacing grocery spending (and indeed all retail spending) in recent years. Furthermore, as spend shifts from transactional to experiential food offers, food and beverage (F&B) is growing in importance to retail real estate. In some regions of the U.K., Canada and U.S., the amount of space in properties dedicated to F&B is forecast to reach up to 20% or more of total space by 2025 (and it could surpass 30% in Asia). Implemented correctly, foodservice drives shopper traffic, dwell time, spend and overall sales growth—the “halo effect.” To be sure, more restaurants and bars do not necessarily equate to success for shopping centers, as this huge expansion in space allocation comes with opportunities (e.g., increased shopper traffic and sales) but also risks (e.g., oversupply). But overall, F&B can now act as an anchor. This paper explores the impact of foodservice growth on retail real estate, considerations and best practices for the successful integration of foodservice, and the future outlook.  

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