Hungry shoppers want good food. And they are likely to stay by the food and shop, which benefits both retailers and real estate owners who take note of this.
The talk of the largest gathering of retail real estate professionals in the world, held by the International Council of Shopping Centers in Las Vegas this week, is a staple food, according to a handful of visitors to the show.
A study released on Monday by Jones Lang LaSalle, a commercial real estate service provider, found that in surveys of more than 1,500 US adults in March, 40% of customers choose a mall based solely on their food , And almost 38% of people want healthy alternatives if they go there.
Bringing people into the mall with good food often means spending more, JLL said.
Transactions in shopping malls increase by up to 25% JLL said that buyers who eat at the mall spend up to 1
"With more focus on food service in shopping malls than ever before, mall owners can not outrun the market with tired formats," said JLL.
The American Dream shopping mall, developed by the Triple Five Group and due to open this fall In New Jersey, the very first kosher food hall in the United States is said to have been built, an example of a unique format the market is coming.
Mall owners are increasingly building food warehouses with local chef-run restaurants, sushi, bars and premium coffee shops as retailers like Payless ShoeSource, Gymboree and Charlotte Russe close the store and leave empty homes.
In 2006, about 10% of the area was food in an average mall in the US. Drinks and entertainment, according to commercial real estate service provider Cushman & Wakefield. Last year, this statistic had risen to about 20%, Cushman said. And it is expected to grow.
For the so-called Class A shopping malls in the US, which generate more sales per square foot than competitors, the figure is even higher – about 25% or more of the square footage is accounted for by company information in restaurants, not in clothing chains.
"We made a 180-degree turnaround from this philosophy 10 years ago when [mall owners] a food court was set up, but the buyers were mainly for shopping, and the food court was just a convenience Refuel, "he told Garrick Brown, a retail real estate analyst for Cushman. "Now I'm going to the mall because it's really good food there, it's a reversal of the notion that food is a convenience, now food can drive traffic."
But Brown does not talk about Sbarro Pizza, Aunt Annes Pretzels, and Great American Cookies, though these are always considered childhood favorites.
Food halls are replacing food courts and are changing to meet changing consumer tastes. What is the difference? A food hall is basically the adult version of its predecessor. The food there is trendier, healthier and often turns in and out of the room.
For example, at Gotham West Market in New York, restaurants serving everything from seafood and burgers to tapas and tacos to ice cream have moved in and out month after month as the kitchens and preparation areas are shared and provide that flexibility , unlike independent restaurants.
According to Cushman estimates, there were around 120 food stalls nationwide in 2016, some of which are still under construction and some are already open. By the end of 2020, this figure is expected to nearly quadruple (450), Cushman said. And while not all are in shopping malls, many show up there.
Brookfield's Tysons Galleria shopping center in Virginia has a concept called "A Taste of Urbanspace" on the third floor of the mall, which has emerged in some of Washington's favorite DC restaurants, such as Lady M-cake, Sen Khao Noodles and Ice Cream Jubilee. That of Related Cos. And Oxford Properties Group's Hudson Yards shopping center in New York has a huge Spanish food hall on the lowest level. And developer Taubman has a food hall curated by celebrity chef Michael Mina set up in his Beverly Center mall in Los Angeles.
"Five years ago, we would not have talked that way … not about health and wellness, food and entertainment," said Joe Coradino, CEO of Retail Real Estate Investment Trust and owner of the PREIT shopping center. "But Millennials want food and entertainment, then it turns into Gen Z and they become Mall rats."
"Now 25% of our portfolio is food and entertainment," Coradino said of his shopping centers, of which PREIT owns more than 20 in the US, including the Cherry Hill Mall in New Jersey.