food halls: a superior experience
TRANSCRIPT
FOOD HALLS
Retail Landscape is CHANGING
MILLENIALS:
Spend more time at work, and less time at home
vs
Eat out 10% more often than their older peers
+10%
Yet retail occupancy has fallen over 15% since the Recession
-15%
WHY?
Consumers care about experience more than ever before
Ecommerce is a superior
SHOPPING experience
Lower Prices
Greater Selection
Convenient Delivery
Food Halls are a superior
LEISURE experience
Not just food, but “Five Sense” goods – including flower arrangements, craftsman soaps, specialty beer
Food
Miscellaneous
General Merchandise
Apparel and Hobby
Furniture and Home Goods
Electronics
31%27%
25%24%
16%17%
15%16%
10%14%
2%3%
2015
2005
Accordingly, Food Service is the fastest growing retail sector:
Compared to conventional restaurants,
FOOD HALLS OFFER:
Better PricesSmall, specialized vendors,
low overhead
$
Better SelectionDozens of individual vendors
Multiple vendors allow consumers to choose their own experience
40% of millennials want to try something new, even if they are visiting the same place
40%
Dining is inherently social, while shopping is not – as much as we enjoy food,
we enjoy food more together
Food Halls are exactly what the consumer wants:
activity, authenticity, variety, and choice.
Meals at food halls take exactly as long as consumers want them to.
CONCLUSION
Food halls have drawn more customers than other types of retail because they
offer a superior experience
1
Food halls have generated outsized returns because they have more
efficient cost structures
2
“Experiential” retail developments succeed because they leverage intelligent
design principles to drive bottom line efficiencies and create deeply engaging
consumer experiences
3