The food and restaurant industry is expected to grow by approx. 13% over the next five years. What does this mean? This means that this sector is very strong and will continue to be very competitive which will drive innovation. Majority of the food service spending, approx. 75%, results at dine-in restaurants but online ordering is on the rise globally. The traditional burger or sandwich is no longer acceptable. Consumers value experience much more in today’s day in age and restaurants must find ways to deliver that experience in a unique setting to retain and gain market share.
Food-based service uses account for on average approx. 20 – 40% of today’s shopping center tenant mix, up from about 10 – 20% just a decade ago. It is a growing sector and one of which is boding well for shopping center landlord’s that can accommodate these uses at their property. Studies show that shoppers who dine in at malls had increased shopper retention time at those facilities by approx. 35% longer and increased transaction at the specific property by approx. 25%, this just proves that food reinvigorates retailers and adds to the support of brick and mortar. While food delivery is on the rise, it is going to be interesting to see how companies and brands continue to evolve with their offerings. In my opinion, I believe food delivery is very convenient for consumers, however, I also believe that food of which is delivered is not of the same quality and consistency of which could be obtained by dining in at the establishment. Consumers value experience and while delivery is convenient, brick and mortar will always prevail as consumers motivations have changed, creating time to enjoy and appreciate unique restaurant experiences.