ICSC Czech and Slovak Retail Real Estate Conference

Food & Beverage Remodeling Successfully Transforming the Shopping

Experience

17th September 2013 Andel’s Hotel, Prague

• Coverpoint – An Introduction

• Foodservice – A Global Picture

• Different Types of F&B Markets

• Role of F&B as a Differentiation Point

• Future of F&B Operators

• Which types of F&B?

• Transforming the Shopping Experience?

Content

1

• International foodservice consultancy.

• 20 years experience.

• 50+ countries.

• 300+ Shopping Centres.

• Specialists in Retail & leisure foodservice.

• We are all Foodservice Professionals.

• FCSI Chairman and worldwide Board.

Coverpoint – An Introduction

2

Worldwide Value

• Estimated to be worth €1,500 billion per year.

• 50% of sales generated from the Americas.

• 22% from Asia Pacific.

• 28% from Europe.

Europe

• 65 Billion meals served a year or 20,600 a second!

• 2.92 million outlets or 6 outlets per 1,000 people.

• €431 billion sales or €474 per person, per year.

Foodservice - A Global Picture

3

Foodservice is operated and used across all retail and leisure sectors:

Different Types of F&B Markets

Transit In-Store Factory Outlets

Leisure Parks Shopping Centres The ‘High Street’

4

Foodservice – the Greatest Attraction?

Role of F&B as a Differentiation Point

5

The Past

• Food used to be about ‘functional’ Fast Food.

• Foodservice environments were very similar.

• Used to be ‘mass’ volume, with no ‘experience’.

• Online retail sales growth is changing this.

Why Foodservice is Growing in Importance

Role of F&B as a Differentiation Point

6

Role of F&B as a Differentiation Point

7

Why Foodservice is Growing in Importance

The Future

• Foodservice is occupying more GLA space.

• Restaurants are the new ‘anchors’.

• Food is the new fashion.

• Eating out creates ‘Social Glue’.

Role of F&B as a Differentiation Point

Growing Trends in Foodservice

• Food was ‘hidden’, but is now high profile.

• Dining is now a strong part of any leisure experience.

• Quality and authenticity is now demanded.

• Diners expect variety of menu, price and style.

• Shop fit quality is now as good as Retail.

8

Role of F&B as a Differentiation Point

Shopping Centres - Pure Leisure Destinations

Retail + Leisure + Foodservice

9

Role of F&B as a Differentiation Point

Importance of Food in Retail Environments Time in Years

10-20 Years Ago Over the last 5 Years In the next 5-10 Years

Food was hidden and

functional.

Coffee was as poor

as the environments.

Fast Food was

dominant.

Mainstream brands want

Shopping Centre space.

Food gives a reason for

customers to visit.

Emergence of familiar

High Street brands.

Food acts as attraction for

new customers.

New concepts launch first

in Shopping Centers.

Foodservice recognised

as a major attraction.

Typical % of GLA allocated to Foodservice

3-7% (Yesterday) 8-10% (Today) 10-15% (Tomorrow)

10

Role of F&B as a Differentiation Point

When Leisure, Foodservice & Retail combine…

A) Retail focused / No Leisure.

At least 6% of GLA dedicated to foodservice.

B) Cinema - Centres with a leisure anchor

At least 8% of GLA dedicated to foodservice.

C) Integrated retail, leisure and community

Up to 15% of GLA dedicated to foodservice.

11

Future of F&B Operators

Trends in Foodservice Operators

Operators are listening - demand for value, choice & authenticity:

• The continued evolution of Coffee – Its now all about the bean!

• Emergence of ‘fast casual’ brands – great food without the fuss.

• ‘Street Food’ concepts & ‘Pop-ups’.

12

The Growing Mix of offers

• Speed Eating

• Refuel & Relax

• Fast Casual

• Casual Dining

• Finer Dining

• Street Food & Pop Up’s

Which types of F&B?

13

The Foodservice Market Segmented

Which types of F&B?

Low High

Low

High

Experience

Price

Speed

Eating

Leisure

Dining

Refuel &

Relax

Finer

Dining

Fast

Casual

14

The Shopping Centre Foodservice Market - Then…

• Fast Food – Traditional Food Courts.

• Functional in Style and Appearance.

• ‘In and Out’ – Short Dwell Times.

• Mass Market – Low Spends.

• Old style fit out and unit presentation.

• No ‘experience.’

Which types of F&B?

15

The Shopping Centre Foodservice Market - Now…

• Casual Dining – Restaurant Clusters.

• Destinational and Aspirational.

• ‘See and Be Seen’.

• Sophistication – A wider range of Spend.

• Sense of Space and Place.

Which types of F&B?

16

Changing Foodservice Locations & Environments

Food Courts

Which types of F&B?

17

Changing Foodservice Locations & Environments Cafés

Which types of F&B?

18

Changing Foodservice Locations & Environments

Restaurants

Which types of F&B?

19

It’s more than just a biological need…

Smart Centres have learned:

Great Food (and Toilets) = Great Experience.

• The body needs a ‘nibble’ every 2.5 hours – Give them choice.

• Once you have filled up, you need to empty! – Give them toilets.

Transforming the Shopping Experience?

20

Now we see Foodservice:

• Providing a regular & sustained footfall.

• Extending dwell times over 2 meal periods.

• Stretching the trading day – evenings too!

• Creating a loyal customer base.

• Increase average retail spends.

Transforming the Shopping Experience?

21

Dare to be different…It’s Low Risk!

• Adopt a more flexible and commercial approach:

•

- Shorter lease terms

- Turnover / concession rents.

- Bring in new concepts.

- Managing the mix to keep it fresh.

- Creating great foodservice spaces.

Dare to do nothing…The Highest Risk

22

Transforming the Shopping Experience?

Q&A Time

Questions please

Coverpoint Catering Consultancy Ltd

The Barn

11 Waltham Court

Milley Lane

Hare Hatch

Reading

United Kingdom

RG10 9AA

0044 118 940 5266

23