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Restaurants: Now serving retail growth

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Executive Summary

Now Serving Retail Growth

Growth Driver: Post-recession growth in the restaurant category is driven by a fundamental and cross-generational shift in consumer dining habits.

Who’s Spending? Millennials dine out more frequently than their older counterparts, but Generation Xers and baby boomers contribute most to restaurant sales. Millennials likely will spend more as they advance in career and spending power.

Hot Categories: Four segments best poised for future expansion are food trucks, food halls, celebrity-chef restaurants and grocers, though landlords must be both vigilant and creative in their lease terms.

Where is Growth? Secondary urban markets are best positioned for restaurant spending growth, most notably Minneapolis, Denver, Baltimore and Philadelphia.

Landlord Appeal: Restaurants are a key component of “placemaking” and will expand their presence in retail real estate as landlords seek tenants that drive traffic and sales.

SOURCE: CBRE
TH Real Estate:
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