The restaurant industry is expanding at an exponential rate with the amount of space dedicated to food in a retail environment growing from five per cent a decade ago to 15 per cent today. This trend is expected to increase to 20 per cent by 2025, according to a global study “The Successful Integration of Food & Beverage within Retail Real Estate” from the International Council of Shopping Centers (ICSC).
The study explores foodservice’s impact on retail real estate and strategies to seamlessly integrate restaurants to complement and enhance offerings with the overall retail real estate experience.
For the first time ever in 2016, U.S. restaurant sales eclipsed grocery store sales, a signal of the growing popularity of foodservice. Europe is tracking in the same direction and Asia was the leader in this trend.
“The increasing popularity of dining out is revitalising retail real estate around the globe by creating a true sense of community where people can go out to dinner, take in a movie and shop, all in one place,” said Tom McGee, President and CEO of ICSC. “Shopping centres that are strategic and innovative when incorporating restaurants are reaping the benefits such as increases in foot traffic, dwell time and number of visitors.”
The two biggest drivers of change in the industry are technology advancements and the rise of an experience economy. The research found that shopping centres and restaurants that used technology to engender loyalty, such as a multichannel CRM system were winning when it came to retaining customers and increasing average spend. Those that were able to communicate with shoppers in real time as they shopped were particularly successful.
Here at Alchemetrics we’re delivering on this with several digital transformations for brands in the past 12 months. The results are speaking for themselves with several award wins under our belt for how we are managing and using data to deliver personalised guest experiences.
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