Food & Beverage Remodeling Successfully Transforming the Shopping Experience
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1 ICSC Czech and Slovak Retail Real Estate Conference Food & Beverage Remodeling Successfully Transforming the Shopping Experience 17 th September 2013 Andel s Hotel, Prague
2 Content Coverpoint An Introduction Foodservice A Global Picture Different Types of F&B Markets Role of F&B as a Differentiation Point Future of F&B Operators Which types of F&B? Transforming the Shopping Experience? 1
3 Coverpoint An Introduction International foodservice consultancy. 20 years experience. 50+ countries Shopping Centres. Specialists in Retail & leisure foodservice. We are all Foodservice Professionals. FCSI Chairman and worldwide Board. 2
4 Foodservice - A Global Picture Worldwide Value Estimated to be worth 1,500 billion per year. 50% of sales generated from the Americas. 22% from Asia Pacific. 28% from Europe. Europe 65 Billion meals served a year or 20,600 a second! 2.92 million outlets or 6 outlets per 1,000 people. 431 billion sales or 474 per person, per year. 3
5 Different Types of F&B Markets Foodservice is operated and used across all retail and leisure sectors: Transit In-Store Factory Outlets Leisure Parks Shopping Centres The High Street 4
6 Role of F&B as a Differentiation Point Foodservice the Greatest Attraction? 5
7 Role of F&B as a Differentiation Point Why Foodservice is Growing in Importance The Past Food used to be about functional Fast Food. Foodservice environments were very similar. Used to be mass volume, with no experience. Online retail sales growth is changing this. 6
8 Role of F&B as a Differentiation Point Why Foodservice is Growing in Importance The Future Foodservice is occupying more GLA space. Restaurants are the new anchors. Food is the new fashion. Eating out creates Social Glue. 7
9 Role of F&B as a Differentiation Point Growing Trends in Foodservice Food was hidden, but is now high profile. Dining is now a strong part of any leisure experience. Quality and authenticity is now demanded. Diners expect variety of menu, price and style. Shop fit quality is now as good as Retail. 8
10 Role of F&B as a Differentiation Point Shopping Centres - Pure Leisure Destinations Retail + Leisure + Foodservice 9
11 Role of F&B as a Differentiation Point Importance of Food in Retail Environments Time in Years Years Ago Over the last 5 Years In the next 5-10 Years Food was hidden and functional. Mainstream brands want Shopping Centre space. Food acts as attraction for new customers. Coffee was as poor as the environments. Fast Food was dominant. Food gives a reason for customers to visit. Emergence of familiar High Street brands. New concepts launch first in Shopping Centers. Foodservice recognised as a major attraction. Typical % of GLA allocated to Foodservice 3-7% (Yesterday) 8-10% (Today) 10-15% (Tomorrow) 10
12 Role of F&B as a Differentiation Point When Leisure, Foodservice & Retail combine A) Retail focused / No Leisure. At least 6% of GLA dedicated to foodservice. B) Cinema - Centres with a leisure anchor At least 8% of GLA dedicated to foodservice. C) Integrated retail, leisure and community Up to 15% of GLA dedicated to foodservice. 11
13 Future of F&B Operators Trends in Foodservice Operators Operators are listening - demand for value, choice & authenticity: The continued evolution of Coffee Its now all about the bean! Emergence of fast casual brands great food without the fuss. Street Food concepts & Pop-ups. 12
14 Which types of F&B? The Growing Mix of offers Speed Eating Refuel & Relax Fast Casual Casual Dining Finer Dining Street Food & Pop Up s 13
15 Which types of F&B? The Foodservice Market Segmented High Finer Dining Price Speed Eating Refuel & Relax Fast Casual Leisure Dining Low Low Experience High 14
16 Which types of F&B? The Shopping Centre Foodservice Market - Then Fast Food Traditional Food Courts. Functional in Style and Appearance. In and Out Short Dwell Times. Mass Market Low Spends. Old style fit out and unit presentation. No experience. 15
17 Which types of F&B? The Shopping Centre Foodservice Market - Now Casual Dining Restaurant Clusters. Destinational and Aspirational. See and Be Seen. Sophistication A wider range of Spend. Sense of Space and Place. 16
18 Which types of F&B? Changing Foodservice Locations & Environments Food Courts 17
19 Which types of F&B? Changing Foodservice Locations & Environments Cafés 18
20 Which types of F&B? Changing Foodservice Locations & Environments Restaurants 19
21 Transforming the Shopping Experience? It s more than just a biological need Smart Centres have learned: Great Food (and Toilets) = Great Experience. The body needs a nibble every 2.5 hours Give them choice. Once you have filled up, you need to empty! Give them toilets. 20
22 Transforming the Shopping Experience? Now we see Foodservice: Providing a regular & sustained footfall. Extending dwell times over 2 meal periods. Stretching the trading day evenings too! Creating a loyal customer base. Increase average retail spends. 21
23 Transforming the Shopping Experience? Dare to be different It s Low Risk! Adopt a more flexible and commercial approach: - Shorter lease terms - Turnover / concession rents. - Bring in new concepts. - Managing the mix to keep it fresh. - Creating great foodservice spaces. Dare to do nothing The Highest Risk 22
24 Q&A Time Questions please Coverpoint Catering Consultancy Ltd The Barn 11 Waltham Court Milley Lane Hare Hatch Reading United Kingdom RG10 9AA
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