December 27, 2017
Commercial real estate has altered its perception of food service. Traditionally food was pertained to the food court area, but that is no longer the case. Today, restaurants have become a central figure in the design of shopping centers. Commercial real estate has become more dependent on food service to obtain profits. This new function of restaurants has caused a drastic shift in the relationship it has with retail. There has been a slight role reversal to which industry brings in customers, as food service is having a greater impact.
The Food & Beverage category is a growing segment, which leads to the integration of food service within commercial real estate spaces. One study conducted by the International Council of Shopping Centers, focused on the role of food service in the retail atmosphere. They found that in most countries, consumers have been spending more on food service than they have on groceries in recent years. People are now eating out more, and restaurants at all price points are seeing increased traffic. Food service has had a halo effect to the surrounding stores, and as a result, the stores experienced sales growth. Restaurants are now used as anchors in commercial real estates to attract customers. By 2025, the amount of retail space dedicated to Food & Beverage is forecasted to reach over 20% for the United Kingdom, Canada, and the United States. The predicted amount of restaurants and bars in shopping centers could exceed 30% in Asia.
The effect that food service has on commercial real estate is increasing, but it has to be utilized correctly. The layout of the retail space must be conducive to cross-shopping. After dining, people are more likely to shop if the stores are easily accessible and nearby. Urban enclaves have been proficient in their use of design to promote cross-shopping. Technology is another avenue that can lead to more profitable retailers. Consumers are willing to travel to restaurants that receive positive reviews online, as they are seen as having goods of greater value. The attention the food service sees will translate to more traffic to the surrounding shopping center. Putting an effort into the internet presence of a restaurant will have a positive effect on the local economy. It is also important to be mindful to the trends of the area. Trends in food come and go quickly, but some have a lasting presence. It is smart to know how to adapt to the current tendencies in order to cater to customers wants. Food service has seen a growth in health-oriented, chef-driven, and fast-casual dining concepts. Keeping this information in mind will help lend to prosperous restaurants and commercial real estate.
Food service is a growing industry that will continue to be an advantageous business prospect. NAI Isaac employs experts that are equipped to successfully manage every aspect pertaining to real estate. We are dedicated to setting our clients on a path that leads to continued success. We are located in Lexington, KY and provide service to the surrounding area.