As US malls strive to revamp their offerings, they are turning to sushi conveyer belts, craft-beer membership clubs, Korean barbecue, and a wider variety of global cuisines to replace traditional fast food options. The pandemic, the rise of online shopping, and over-building has led to the departure of anchor department stores and popular chains like Ruby Tuesday, Chili’s, and Applebee’s from malls. In their place, there is a noticeable trend towards smaller and regional restaurant chains with a local following, as well as a focus on emerging eatertainment concepts such as Puttshack and Topgolf that aim to keep customers engaged and spending more time in the mall.
Landlords are banking on emerging restaurant brands such as Lazy Dog, Gen Korean BBQ, and Postino Wine Café to attract customers back to the malls and create a vibrant dining scene. Tableside monitors and rolling robots serving drinks are some of the innovative features being introduced by these new restaurant chains to enhance the dining experience. National chains are shifting their focus to drive-thru locations over sit-down restaurants in malls, recognizing the profitability and efficiency of this model.
Food and beverage offerings have become a crucial anchor for malls, as department stores like Macy’s, JCPenney, and Nordstrom have been closing hundreds of their locations due to the growth of online shopping. Real estate research indicates that the amount of space dedicated to food in malls has increased significantly over the years, indicating the importance of dining options in drawing foot traffic and increasing consumer spending in malls. According to industry experts, food and beverage outlets have replaced some of the traditional department stores that have left, making them essential for landlords looking to attract shoppers.
Many quick-service restaurants like McDonald’s and Chick-Fil-A have closed their mall locations, with some chains choosing to focus on drive-thru models for increased profitability. The shift towards drive-thru sales has seen significant growth in recent years, with analysts noting the higher profitability and lower maintenance requirements of drive-thru locations compared to sit-down restaurants. Gen Korean BBQ, a growing restaurant chain in malls, offers customers a unique dining experience by allowing them to order meat to their tables and cook it themselves, catering to the demand for unique and experiential dining options.
The changing landscape of mall tenants towards more diverse and innovative food options may face challenges in the long run, as losing big-name anchor eateries could impact foot traffic and revenue. However, the shift towards more experiential dining concepts and emerging restaurant chains presents an opportunity for malls to attract a new wave of customers and create a dynamic dining scene. As mall landlords and analysts navigate this transition, the emphasis on offering unique dining experiences and catering to evolving consumer preferences will be key to ensuring the success of malls in an increasingly competitive retail landscape.