New Restaurants in Malls Draw Customers

The nostalgic days of hanging out at the mall might be making a comeback, as some malls across the U.S. are thriving by incorporating modern amenities like new local restaurants, arcades, and more entertainment-based options for families and consumers. According to research from Deloitte, the food and beverage space in malls has grown significantly, from 5% in the 1990s to 15-20% today, with projections that it could go as high as 50% in the future.

This shift in mall offerings is driving increased mall traffic, with data from Coresight Research showing that both lower- and top-tier malls saw an increase in traffic compared to prepandemic levels. The State of the American Mall 2023 report found that top-tier mall traffic rose by 12% on average in 2022 compared to 2019 levels, while non-top-tier mall traffic was up by 10%.

The International Council of Shopping Centers also reported that 12.9% of consumer expenditure on retail goods, food services, and other retail-adjacent services went through malls in the first quarter of 2023. Analysts attribute this increase in mall traffic to the appeal of the food and beverage options offered, as people are spending more time in malls seeking a sense of community.

Gary B. Smith, a NewsNation contributor and hedge fund manager, commented on the trend, stating that malls and restaurants that reinvent themselves and offer a variety of options are more likely to succeed in the long run. Deloitte’s research also highlights that people of all generations are looking for a sense of community, and malls with diverse offerings are meeting that need for social connection.