Hungry shoppers want to eat at their favourite restaurant. And, chances are they will stay in the mall for a longer period if they are fed well, benefiting both retailers and real estate owners.

Today food business scenario is going through the biggest phase of disruption. From investors heavily investing into the food business to real estate people allocating more spaces to food brands, we can say that food business is projecting the growth of retail-real estate scenario in India.

As per a recent report, getting people into the mall with good food often means they’ll spend more. And, not just that transactions increase are much higher at malls that has quality food and beverage options.

“There has been a noticeable increase in the number of food spaces and restaurants within malls, with their presence growing by approximately 10-15 percent compared to just a few years ago,” shared Anshuman Bhardwaj, Centre Director, Phoenix Marketcity, Pune by adding that this trend can be attributed to the changing preferences of modern consumers who are seeking unique dining experiences and a wide range of culinary options.

Malls have recognized the potential of the food and beverage industry and have responded by incorporating diverse and innovative food spaces to meet the evolving demands of consumers. This shift reflects the growing importance of food as a social and experiential activity, with malls providing a convenient and centralized location for people to meet, shop, and indulge in a variety of gastronomic delights.

Factors Driving the Growth

From evolving customer preferences to experiential dining and lifestyle changes, there are many other factors that have contributed to the growth of mall footfall and gradually sales in a mall.

“F&B industry is growing and there are different concepts and cuisines available increasing the market. Today we look at 35-40% space allocated to entertainment and F&B. Movies and gaming takes around 20-25% space and 15-20% goes to F&B,” shared Rajneesh Mahajan, CEO, Inorbit Malls by adding that retail is more about experiences today and less transactional, mall are becoming social spaces.

There’s no denying that F&B helps in creating unique experiences and allows customers to socialise hence serving the larger purpose. Malls like Sarath City in Hyderabad, Select CityWalk and Phoenix Group as a whole have created so much for the foodtainment sector that no shopper would want to go back home without taking a bite of the food that is being offered at these malls.

For instance, Infiniti Mall that serves as a prime location for consumers, providing convenience and easy access, thereby attracting a significant number of visitors. Both the Infiniti Malls- Andheri and Malad are located strategically ensuring easy access to Mumbaikars.

“The evolving preferences of consumers, emphasizing experiential dining and social engagement, have generated a demand for diverse food options. Lastly, at Infiniti Media, our utmost dedication lies in ensuring an unparalleled customer experience. To uphold this commitment, we constantly endeavor to implement a range of enhancements and introduce fresh options within our food spaces. We have curated an extensive selection of culinary delights, featuring inventive concepts and immersive dining experiences. Evolving customer preferences drives us to create an ambiance that surpasses expectations and nurtures an unforgettable dining odyssey,” pointed Gaurav Balani, Deputy General Manager, Infinity Mall that has devoted around 20% of the total space to F&B verticals, guaranteeing a rich culinary panorama for their patrons and new visitors.

How does Mall decide on Space Allocation?

In recent years, there has been a significant increase in the amount of space allocated to food and beverage (F&B) verticals in malls. Traditionally, malls were primarily focused on retail stores, but the growing demand for dining experiences and the evolving preferences of consumers have led to a shift in the allocation of space. Today, malls are recognizing the importance of incorporating a diverse range of F&B options to cater to the changing needs of shoppers. The allocation of space to F&B in malls can vary depending on the size and layout of the mall, as well as the market trends and consumer demographics in the area.

“We at Infiniti Mall strive to provide our patrons with a wide variety of food options. To determine the allocation factors, we consider factors such as customer preferences, popular food trends, and the diversity of cuisines,” added Balani that has strategically allocated space for cafes on the upper and lower ground floors, allowing customers to conveniently enjoy a meal, have a refreshing drink, or take a break from their shopping experience.

Adding to the same, Bhardwaj mentioned, “There is no fixed standard or predetermined allocation percentage for F&B space in malls, as it can vary based on market conditions and the preferences of the mall operators or developers. However, at Phoenix Marketcity Pune we have 20% of total retail space i.e. 60 outlets occupied by F&B category, this allocation includes various types of F&B spaces, such as restaurants, cafes, food courts, dessert Parlors, and specialty food stores.”

Cuisine/Trend Pushing the Growth

According to a report by Statista, in 2018, there were 253 shopping malls in the eight major metropolitan areas of India. This was a stable year-on-year increase from 188 malls in 2012. By 2022 it is expected that around one hundred malls are completed. The number of shopping malls indicates a growth of the middle class.

At Infinity Malls, the spokesperson was of the view that they have witnessed a surge in growth at our outlets due to the captivating appeal of specific cuisines and emerging food and restaurant trends. “The increasing popularity of our local / international flavors including Indian, Japanese and Korean Cuisines has played a pivotal role in attracting customers. Additionally, the growing preference for health-conscious options and plant-based alternatives has further fueled the success and expansion of our outlets in both Andheri and Malad Malls,” Balani further shared.

Sharing a similar opinion, Bhardwaj is of the view that the rise of international and diverse culinary options has pushed mall owners to think beyond the boundaries. “Consumers today have become more adventurous in their food choices and are seeking unique and authentic dining experiences. Malls have responded by incorporating a wide range of international cuisines, from Japanese sushi and Mexican street food to Italian pasta and Middle Eastern delicacies. This globalization of tastes and the availability of diverse culinary options within malls have created a vibrant and multicultural food scene, catering to the evolving preferences of consumers,” he concluded by adding that the dynamic nature of the industry ensures that new cuisines and trends will continue to emerge as consumer preferences evolve.

Thus, we can say that food is no more an option today, it has become a traffic generator and looking into these valuations, many of the malls like GIP, Select City Walk, and Prestige Group to name a few have relocated spaces to food brands which were earlier allocated to some other retail formats.