Does your favorite restaurant offer online ordering, curb-side pick-up, or delivery? If it doesn’t, it might be losing out to the competition.
Total global food-service spending is projected to grow by 13 percent over the next five years, resulting in some $359 billion in incremental value, according to JLL’s Food-Service Trends 2019 report.
Last year nearly 75 percent of food-service spending occurred at dine-in restaurants, but the rise of online food ordering globally is projected to reach about $365 billion by 2022.
The rise of food delivery is creating competition for the food-service industry, driving restaurants to innovate and adjust their offerings beyond just dining.
Delivery is becoming the fastest-growing dining occasion. The value of online food ordering globally is projected to grow by some 30 percent by 2022.
James Cook, JLL's director of retail research stated, "We found that shoppers who dined at the mall stayed 35 percent longer and increased transactions by 25 percent."
Now other real estate sectors are catching on to the tangible benefits that food offerings can bring in. The JLL report examines the impact these real estate sectors:
Visitor attractions: Repeat guests are crucial for galleries, museums and attractions to stay in business. About 17 percent of survey respondents said food-and-drink facilities that better meet their needs would encourage them to visit more frequently.
Stadiums: A single-focus sports stadium may be in use as little as 20 times per year. making revenue maximization critical. Respondents said they declined to take time to go and buy food because they were unwilling to miss any part of the game. Now, food service is part of the strategy, in order to offer convenience during the games.
Hotels: Roughly 20 percent of the space at U.S. and Canadian hotel properties will be dedicated to food and beverage by 2025.
Transportation terminals: By 2050 roughly 70 percent of the global population will live in urban areas — and these people will need places to grab a bite to eat. Migration toward a healthier range of options at transport hubs is already in evidence.
The workplace: As competition for talent intensifies, employers are looking for ways to attract and retain the best. 60 percent of the respondents ranked food in the workplace among their top three office perks.
Cook expects the food sector to continue to evolve across these five nontraditional retail sectors, each with a different and unique approach. "It’s likely some will focus on Instagram-worthy experiences, and others on the basics of providing the freshest and highest-quality food."
Download the full report here.