India’s retail scene is undergoing a notable change as property developers launch malls exclusively focused on food. In these establishments, over 50% of the space is allocated to food outlets and entertainment areas. This shift underscores the increasing acknowledgment of the pivotal role played by food and beverages as the primary revenue drivers for malls.
Prestige, headquartered in Bengaluru, has recently inaugurated a 125,000 sq ft mall exclusively featuring restaurants and cinemas. Additionally, the company is in the planning stages for a larger 500,000 sq ft mall following a similar concept. Meanwhile, Omaxe Group from Delhi is in the process of developing a mall in Chandni Chowk, New Delhi, with 70% of the space reserved for restaurants. Signature Global, another prominent developer, already operates a food-only mall in Ghaziabad.
Phoenix, headquartered in Mumbai, and DLF, based in New Delhi, are both expanding the space dedicated to restaurants in their existing properties and upcoming projects. This decision stems from the sustained rise in customer foot traffic and revenue growth observed in eateries following the post-pandemic period.
“We have taken a lot of feedback from the operators of our first food-only mall, and we are using that for better experience in the second mall, which will be bigger. Eating out has emerged as the biggest trend post Covid and that has made us confident to do a bigger mall where every restaurant will have an outdoor space,” said Muhammad Ali, CEO, Forum Malls of Prestige group.
Until approximately three years ago, food and beverage outlets occupied around 10% of the retail space in malls. However, this percentage has now increased to 20%. Mall operators express their readiness to allocate even more space to eateries in response to this growing trend.
“Food is big business, and it becomes unbeatable when paired with the right ambience. That’s precisely what we have done at Dawatpur, the Omaxe Chowk food court,” said Mohit Goel, managing director, Omaxe Group.
Omaxe Chowk, located in Chandni Chowk, offers a leasable area of 375,000 square feet, with a specific allocation of 100,000 square feet dedicated to food and beverage outlets.
