In the bustling metropolises of the world, from the neon-lit streets of Tokyo to the skyline-piercing towers of Singapore, Hong Kong, and the cosmopolitan hubs of New York, London, and Dubai, shopping malls are undergoing a dramatic transformation. Once dominated by luxury boutiques, department stores, and fast-fashion outlets, these sprawling commercial centers are now placing their bets on an unlikely savior: restaurants.
This shift reflects a global trend of changing consumer behavior and the necessity for malls to adapt. Data from leading real estate consultancy firms like Knight Frank, JLL, Colliers, and Savills paints a clear picture—restaurants and food-centric offerings are becoming the cornerstone of mall revitalization strategies.
From Shopping Havens to Dining Destinations
Historically, malls were built around anchor tenants such as department stores, which occupied vast amounts of space and drove significant foot traffic. But with the rise of e-commerce and the decline of traditional retail, many of these anchors have either shuttered or significantly downsized. In their place, dining establishments are taking center stage, drawing crowds with their promise of culinary experiences.
Tokyo’s Omotesando Hills exemplifies this evolution. Once a high-fashion destination, it now boasts an extensive lineup of artisanal cafes, sushi bars, and fusion restaurants that attract locals and tourists alike. Similarly, Singapore’s Jewel Changi Airport, though an airport mall, has redefined the dining experience with establishments ranging from Michelin-starred hawker stalls to upscale international cuisine.
In Dubai, the Mall of the Emirates has expanded its dining portfolio to cater to a cosmopolitan clientele, blending luxury dining with casual eateries. And in London, Westfield has created entire districts within its premises dedicated to gastronomy, turning a simple shopping trip into an immersive dining journey.
The Numbers Behind the Shift
A recent report by JLL highlights that food and beverage (F&B) spaces now occupy up to 20-30% of the gross leasable area (GLA) in many modern malls, compared to just 5-10% a decade ago. This is not mere coincidence—studies show that consumers who dine at malls tend to spend significantly more time and money there compared to those who come solely to shop.
Colliers’ analysis further reveals that malls with a diverse and high-quality F&B offering see an average increase in foot traffic of 15-20%. Restaurants also provide an experiential component that online retail simply cannot replicate. The sensory appeal of dining—aromas wafting from open kitchens, the warmth of freshly baked bread, or the visual artistry of plated dishes—is irreplaceable in the digital realm.
Knight Frank’s 2023 retail insights emphasize that restaurants are no longer just an accessory to malls—they are anchors. These spaces, often occupying prime locations within the mall, act as hubs for social interaction, making malls more than just shopping destinations.
Hong Kong’s K11 Musea illustrates this strategy. Touted as a “cultural-retail” destination, its restaurant lineup includes world-class chefs and concepts that merge art with dining. This integration of gastronomy with lifestyle offerings has made it a magnet for affluent locals and tourists, even amidst retail headwinds.
In the United States, Simon Property Group has leaned heavily on the F&B sector, introducing food halls and chef-driven concepts across its portfolio. Similarly, in Europe, malls like Paris’ Les Quatre Temps and Milan’s Il Centro have reoriented their layouts to feature open-air terraces and communal dining areas, enhancing the appeal of their restaurant offerings.
What Consumers Want: Experiences Over Transactions
The shift toward restaurants aligns with broader consumer preferences. Today’s mall-goers are seeking experiences rather than mere transactions. Dining provides a social and emotional connection that elevates a mall visit into a memorable occasion.
Savills’ global retail trends report points out that millennials and Gen Z shoppers, in particular, value experiential offerings. This demographic, which constitutes a significant portion of urban populations, is drawn to unique dining experiences—be it thematic cafes in Tokyo, rooftop bars in Singapore, or pop-up dining concepts in New York City.
Restaurants also play a critical role in the rejuvenation of older malls. By integrating F&B offerings, mall operators can breathe new life into aging spaces, attracting a younger, more diverse audience.
In the Middle East, Riyadh’s Panorama Mall recently underwent a renovation that placed an emphasis on its dining options, featuring a mix of international chains and local culinary stars. The result? A 25% increase in foot traffic within six months of reopening.
Meanwhile, malls in secondary cities, such as those in Southeast Asia and Eastern Europe, are also adopting this strategy. They recognize that dining transcends socio-economic boundaries, offering something for everyone—from budget-conscious food courts to exclusive fine-dining establishments.
The Future of F&B in Malls
The rise of restaurants within malls is not merely a trend; it is a structural shift in the retail landscape. As e-commerce continues to dominate transactional shopping, malls must differentiate themselves by providing experiences that cannot be replicated online.
Leading property consultancies agree that the future of malls will be defined by a balanced ecosystem of retail, dining, and entertainment. JLL predicts that by 2030, F&B could account for up to 50% of some malls’ tenant mix, especially in markets where dining out is culturally ingrained.
Colliers also notes the potential for technological integration within mall dining experiences. From augmented reality menus to app-based table reservations and personalized dining recommendations, the future promises an even more seamless and engaging experience for consumers.
Challenges and Opportunities
However, this pivot is not without challenges. Restaurants are high-maintenance tenants, requiring significant investment in infrastructure, from ventilation systems to waste management. The COVID-19 pandemic also highlighted the vulnerabilities of the F&B sector, with many establishments struggling to survive prolonged closures.
Yet, for those that adapt, the rewards are immense. As Knight Frank points out, malls with strong F&B offerings are better positioned to weather economic downturns, thanks to their ability to draw repeat visits and foster customer loyalty.
The integration of restaurants into malls is reshaping urban retail landscapes across the globe. In cities like Tokyo, Singapore, Hong Kong, and Dubai, as well as in major Western capitals, dining has become the new anchor, driving foot traffic and reinvigorating the mall experience.
With data from industry leaders such as Knight Frank, JLL, Colliers, and Savills affirming this trend, it is clear that the future of malls lies not just in what people can buy, but in what they can taste, share, and savor. For mall operators, restaurateurs, and consumers alike, this culinary renaissance is a win-win, ensuring that malls remain relevant, vibrant, and essential in the ever-evolving urban landscape.