The taste of things to come?
Published: 10 September, 2007
Shopping centres across the country are accused of offering the same bland, homogeneous mix of retailers. There's nothing new in this - a very similar argument surfaced some years ago - but now, shopping centre owners are increasingly looking to their catering offer as a way of highlighting that elusive point of difference, making their centre a unique experience that offers something special.
However, there are a number of factors to consider as a shopping centre owner. Financial institutions and their valuers' starting point will always be the impact on yields and capital values, and clearly, if one were to stick purely to the financial model, then all shopping centres would contain the same mix of casual dining restaurants, coffee shops, etc.
How do you value the impact of food and drink on a mall? Catering adds something intangible to the whole ambience of a centre. It's still a financial equation but the magic and power of the dining sector today mean the impact is greater than a spreadsheet would suggest. And if catering is there to offer a point of difference then perhaps an alternative approach is justified.
Of course, a restaurateur must be able to pay the rent, not only today but in the foreseeable future, and it is therefore important to take a closer look at their actual business plan and the offer itself before committing. At the same time, it's important to keep a keen eye on newly-emerging concepts and brands as these are the tenants that really will be able to offer customers a true point of difference.
If one looks at the oldest shopping centres of all - the food markets and the traditional high streets - the likes of Borough Market and Marylebone High Street in London have been able to retain true independents of very high quality.
Another important consideration is the demographic profile of your customers, but even in the most affluent of catchments there's still a place for the generic offering.
When creating a catering mix for a new scheme, or when I have a remit to improve the offer in an existing shopping centre, I always like to start with a bedrock of the newer operators. These usually offer good quality and they also normally reflect current customer aspirations. For example, the remodelled pavilion at Lakeside, renamed The Boardwalk, successfully opened in June with 11 restaurants overlooking Alexandra Lake together with a refurbished state-of-the-art Vue cinema. We were able to go for the 'best in class' operator in each category, attracting brands like Bella Italia, Café Rouge, La Tasca, Nando's and the first UK Hannah Banana.
According to Capital Shopping Centres: "Initial restaurant trading has been above expectations as customers combine the advantage of longer shopping hours and attractive dining facilities."
Then, on top of this core offer, it pays to include some local brands to encourage local ownership and give new operators a chance. At The Mall in Norwich, we introduced noodle offer Eastside Wok into the Mall Kitchen catering area and it has really integrated itself into the community.
In fact, every shopping centre is unique and the role of the catering mix is to accentuate this and communicate it to the consumer.
However, catering is a fast-moving industry. Brands rise and fall ever more rapidly and changes in ownership can make a real difference to a business. The challenge, therefore, is always to look forward, trying to spot the emerging brands and local rising stars.
So the ideal catering mix is a moving target - but that's not to say it's not worth aiming for.
