As big-box stores such as Sears and Macy’s continue closing their doors citing e-commerce as the straw that broke the camel’s back, brick-and-mortar landlords wonder if there’s any hope left for retail. Fortunately, sales at restaurants and drinking establishments grew to the tune of $155 billion. A report from Reis, Inc., Is the Retail Real Estate Industry Doomed?, found that spending at restaurants and drinking places offset 92% of the retail lost to e-commerce sales. The increase in restaurant sales is also leading to the creation of jobs, which will help contribute to keeping retail spaces occupied. Among retail restaurants, food halls are quickly gaining in popularity due to Millennial foodies searching for experiential dining. Food halls differ from food courts in that they provide a cultural experience and offer both prepared and unprepared food, with farm-to-fork vendors and artisanal restaurants. Demand for food halls is expected to double in the next few years, which is good news for restaurant operators, mall landlords and big-box space owners.
Sources:
BISNOW, An Explosion Of Food Halls: 7 Things You Need To Know