Somewhere to eat and drink is important to SA shoppers, survey finds

In partnership with real estate advisor CBRE, Broll surveyed 1025 consumers across South Africa in order to understand consumer perceptions regarding food and beverage within shopping centres. Results show that 50% of shoppers see stopping for something to eat and drink as an important part of the experience when visiting a centre.

A year ago, the Retail Consumer Survey 2014, revealed that consumers think about the overall experience of the shopping destination and not just about the choice of retail offerings; however they also place a huge importance on factors such as mall cleanliness (being most important), followed by security, price of products and availability of coffee shops and free Wi-Fi, among others.

Elaine Wilson, Divisional Director for Research of the Broll Property Group, explained that the food and beverage sector continues to grow both terms in terms of size and importance in South Africa.

"The opening of new centres and revamping of existing ones almost always sees the addition of food and beverage facilities, which offer consumers a much wider variety of choice.

"Food and beverage facilities within a shopping centre can result in shoppers spending more time at the centre and undertaking additional activities, even if these were not initially planned," she said.

Wilson pointed out that 65% of shoppers will visit retail stores even if their main reason for going to a shopping centre was to eat or drink. This was found to be more applicable to 72% of young people (16- to 24-year-olds) versus 53% of those aged between 55 and 65 years old.

"Furthermore, 56% of consumers indicated that they tend to spend more time shopping if they have something to eat or drink while at a shopping centre."

Survey highlights include:

• Thirty-six percent of shoppers always or nearly always have something to eat or drink when visiting a shopping centre, with a further 25% indicating they do this very often;
  
• Fifty-seven percent indicated they will visit a shopping centre just to eat or drink;
  
• Fifty-six percent of shoppers indicated that eating or drinking is often a spur-of-the-moment decision;
  
• Fifty-six percent want to see more innovative food offerings;
  
• Fifty-one percent want healthy/organic options; and
  
• Fifty-one percent want pop-up restaurants or new concepts

Also of interest are the top-five factors that consumers regard as extremely or very important when looking for somewhere to eat or drink in a shopping centre. These include: quality of food (91%), value for money (82%), quick service (75%), comfortable seating (75%), and a convenient location (67%).

The survey also shows that there are three top places where consumers choose to have something to eat or drink (including take-aways) - restaurant chains (82%), fast food outlets (70%), and independent restaurants (51%).

South African trends

Preston Gaddy, Divisional Director for Strategic Retail Leasing of Broll said the survey underlines the importance of having food and beverage offerings in a shopping centre. However, he noted that the centres' choice of offerings will differ; for example, large shopping centres will have a wide range of offerings and will also have food courts. Smaller and convenience ones will have more fast food and drive through-type offerings.

We also notice that a large percentage of defaulting tenants are in this sector, therefore it is important for landlords to vet franchisees thoroughly when they sign lease agreements, he explained. It is critical for landlords to partner reputable franchisees (also having knowledge of the franchisors and how it operates) to avoid situations where franchisees set up shop and within a short space of time, they close down.

"The meltdown of the frozen yoghurt is an example where we see that 'fads' are not ideal for this sector. Landlords can ensure against this by checking the franchisee business model to see if it is sustainable and that projections are in line with rental obligations," said Gaddy.

EMEA trends

Meanwhile, data from the CBRE Food and Beverage Report that surveyed 22,000 shoppers in 22 countries across Europe, the Middle East and Africa show that one-third of consumers visit a shopping centre purely to eat out, and two-thirds say that the food and beverage provision is a key consideration when choosing which shopping centre to visit.

Peter Gold, Head of EMEA Cross Border Retail of CBRE explained why getting the offer right can generate significant results.

"An innovative, well-curated food and beverage line-up provides a richer experience to shopping centre visitors, an important factor in encouraging them to make regular return visits," said Gold.

The question then is: Could a more eye-catching food and beverage offer detract from the centre's primary purpose - that of shopping? Gold suggests not, saying: "Consumers tell us they will stay longer in a mall if they've enjoyed eating and drinking there. That said, as we've seen within the retail sector, they are much choosier than they've ever been. They demand healthier, better quality food and want to engage with fresh and innovative ideas."