#MAPIC Food offering in shopping centres set to rise

Food & beverage (F&B) operators are set to take up more space in European shopping centres as retail landlords bet on a larger F&B offering to drive footfall and revenues, two recent studies show.

Food services currently account for 15% of the total GLA (Gross Leasable Area) in European shopping centres, but this will rise to at least 20% in total over the next decade, according to research published by JLL at the Mapic trade fair in Cannes.

Customers who eat during a shopping centre trip spend on average 27 minutes longer across the shopping centre and spend 18% more in overall transactions, JLL's research found.

The adviser also predicts there will be more demand for Asian food operators as malls cater for new customers from China and other Asian markets who have significantly expanded their overseas travel footprint. Ippudo, for example, a Japanese noodle chain, recently opened stores in London.

The UK, in particular, can expect additional Chinese travellers as a result of recent visa relaxation, which is likely to increase tourism.

For investors, retailers and landlords alike, an increased F&B component presents opportunities, says Robert Bonwell, EMEA CEO of retail at JLL. ‘The retail narrative at the moment is physical versus online, however the growth of food and beverage highlights the opportunity that exists for restaurants and food offerings that can tap into new eating and leisure trends.’

In its report ‘Food & Beverage in a Shopping Centre’ published in October, CBRE sees 25% becoming the norm for F&B allocation in many European centres. In fact, says the report, any centre that allocates less than 10% of GLA to food and beverage is not sustainable.

‘We know that a shopping centre is more than the sum of its parts: it’s about the overall proposition,’ said Peter Gold, head of EMEA cross-border retail at CBRE. ‘With shopping centres competing for shopper attention, F&B will become increasingly important as a footfall and revenue driver,’ he predicted.

According to the CBRE report, almost a third of all visitors to shopping centres across Europe, South Africa and the Middle East will visit a restaurant or coffee shop. The adviser expects this figure to rise substantially to around 50% over the next five years.

Read about the growing F&B and other retail trends in the November issue of PropertyEU Magazine published at Mapic

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PROPERTYEU AT MAPIC 2015
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European Retail Investment & Asset Management

Date: Thursday, 19 November 2015
Time: 11:00 - 11:40
Location MAPIC - TriGranit Stand, Stand C1, Riviera Hall (R7.C 1), Palais des Festivals

Finding the right investment opportunities in Europe

Where are the best returns and opportunities in European retail? Which cities & markets? Which sectors - High Street, Shopping Centres, Retail Parks, Luxury or Budget? How do leading investors see the retail market? Join industry experts in a lively interactive discussion focused on the investors view .

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