US malls are evolving their dining options to attract customers in the wake of changing consumer habits and the impact of the pandemic on traditional anchor stores. Many recognizable chains like Ruby Tuesday, Chili’s, and Applebee’s have left malls, paving the way for smaller regional restaurant chains and a range of global cuisines to take their place. Emerging brands like Lazy Dog, Gen Korean BBQ, and Postino Wine Café are gaining popularity among mall-goers, while “eatertainment” concepts like Puttshack and Topgolf are expanding to offer more integrated experiences for visitors.
Food and beverage offerings have become a crucial aspect of attracting and retaining customers in malls, especially as department stores like Macy’s and Nordstrom are closing stores. Real estate experts have noted that the amount of space dedicated to dining in malls has increased significantly over the years, from 5% in the 1990s to 15-20% today. With online shopping on the rise, restaurants and entertainment options are seen as key drivers of foot traffic and overall mall success.
Many national chains are shifting their focus to drive-thru locations over traditional mall sit-down restaurants. Quick-service restaurants like McDonald’s and Chick-fil-A have closed mall locations in favor of drive-thru models, which are perceived as more profitable due to their smaller size, lower staff requirements, and increased sales. The drive-thru market has seen significant growth in recent years, with sales reaching $133 billion in 2022, up 30% from pre-pandemic levels in 2019.
Newer dining concepts like Gen Korean BBQ are gaining traction in malls by offering unique dining experiences and filling gaps in the market left by traditional burger, chicken, and pizza places. These restaurants are resonating with customers seeking different culinary experiences and are being embraced by mall landlords looking to attract diverse tenants. It remains to be seen whether these shifts in dining offerings will be successful in the long term, as losing anchor eateries like Cheesecake Factory can have a significant impact on mall traffic.
Overall, malls are experiencing a transformation in their dining landscape, with a focus on smaller regional chains, global cuisines, and innovative dining concepts to draw customers back. The emphasis on food and beverage options as anchors in malls has grown in importance, with landlords investing in these areas to offset the decline in traditional retail stores. The evolving dining scene in malls reflects changing consumer preferences and the need for malls to adapt to remain relevant in a rapidly shifting retail environment.
