Shopping Centre
Fresh taste
Outlet operators are refreshing their food offers, finds Glynn Davis
Published:  22 June, 2006
Page 33 

Outlet centres have not generally been recognised for the variety and quality of the food stores and restaurants they offer, but things are starting to change as the operators seek to use food as a point of differentiation.

Looking to be at the forefront of this trend is McArthurGlen, which has recently recruited Didier Souillat to the newly-created position of food and restaurant director with responsibility for overhauling the food offer across the group's 14 centres.

"There has been a history of a pit-stop culture for the centres over the past 10 years with catering seen as a service to the customer but not much of a service to the retail environment," says Souillat.

Gordon Gabbani, asset management director at outlet operator Realm, agrees: "We recognise the important role that food plays in centres, especially where customers have to travel."

At the McArthurGlen outlets, Souillat's key objective is to ensure that each centre derives a minimum of between 6 to 8 per cent of sales from its food shops and restaurants.

One of his first tasks has been to advise tenants, from the current portfolio of 120 restaurant and 25 food shops, that have been struggling. This has involved suggesting changes to menus, lighting and concepts.

"Ten years ago there was not much choice beyond Spud U Like, Burger King and KFC. And although I'm not against the likes of McDonald's - it's a footfall driver and it responds to customer needs - we need a balance of slow food," explains Souillat.

His job is made easier by tenants who now regard outlet centres as opportunities to expand their brands.

Ted Schama, partner at leisure property specialists Shelley Sandzer, says shopping centres such as Lakeside and Bluewater have proved that restaurant concepts can work well in such environments. "They now recognise it as guaranteed footfall and they will do good business unless they do something badly wrong," he says.

Schama says outlet centres can benefit greatly from the emergence of food concepts that can operate from very small units such as juice bars and bespoke noodle bars.

Souillat has already lined up Fine Burger Company, Krispy Kreme, Eat and Bagel Factory as new tenants. However, he is keen to point out that the likes of baked potatoes, chicken, burgers and fish and chips will remain the core food offering.

"The future will be to target all segments, fast and slow, and have lounge areas with coffee. We'll be zoning the food courts into ethnic, family etc. And there's no need to have 600 seats in straight rows any more," he says.

Integral to this is his plan to introduce new names to the UK, and he has already lined up Australia-based Gloria Jean's Coffees for a unit at Mansfield.

He is also looking to introduce 'pods' that will be "scattered around the food courts" - an idea that stems from the introduction of Yo! Sushi into the food hall at Selfridges six years ago, which increased both the customer mix and footfall.

Gabbani would not comment on whether Realm has any plans to introduce a food specialist, but he says the company is still seeking to improve the food offer. "Everybody is looking to improve as they seek to differentiate by offering something slightly different - something that's livelier; something that's innovative and more theatrical."



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