A new report by JLL Retail’s research team predicts that by 2025, as much as 20% of space in many shopping centers will be occupied by food and beverage (F&B) concepts. A shift from transactional to experiential retail is reflected in consumer spending, with foodservice now outpacing grocery, as well as all retail spending.
Here’s a few key takeaways from JLL’s report:
- Biggest challenge for landlords: understanding that support for restaurant operators differs from responsibilities to traditional retailers.
- Technology is improving operational efficiency and service; enables “hyper personalized” experiences; creates game-changing online delivery services; and contributes to risks already facing industry.
- The rental gap is closing between restaurants and retailers, requiring better model rent practices.
- Restaurant leases tend to be shorter than conventional retail leases — just 5-to-10-years. Landlords will need to understand how this impacts their merchandising mix.
- F&B tenants require owners learn new ways to drive footfall, dwell time, spend and overall sales growth.
For comments, questions or concerns, please contact Dennis Kaiser