US malls are undergoing a transformation in response to the pandemic, over-building, and consumer preferences shifting towards discount and online shopping. Anchor department stores and popular chains like Ruby Tuesday, Chili’s, and Applebee’s have left malls, leading to the emergence of smaller, regional restaurant chains with a local following and a variety of global cuisines. Landlords are now focusing on emerging restaurant brands like Lazy Dog, Gen Korean BBQ, and Postino Wine Cafe, as well as “eatertainment” concepts like Puttshack and Topgolf, to draw customers back to malls.
National chains are prioritizing drive-thru locations over sit-down restaurants in malls, reflecting a shift in consumer preferences. Smaller, independent restaurants and entertainment options are seen as valuable for drawing steady foot traffic and increasing the time consumers spend in malls. Food and beverage offerings in malls have increased from 5% in the 1990s to 15-20% today, with some real estate experts considering food to be the new anchor in malls. With department stores like Macy’s and JCPenney closing hundreds of locations, landlords are looking to invest more in food and beverage options.
Quick-service restaurants like McDonald’s and Chick-fil-A have closed mall locations in favor of drive-thru models, which are seen as more profitable due to their smaller size and lower maintenance costs. Drive-thru sales have seen a significant increase in recent years, with many chains shifting their focus to this model. Some traditional mall restaurants like Chili’s and TGI Fridays are also closing locations in malls, reflecting a larger trend in the industry towards drive-thru locations over sit-down establishments.
New restaurant concepts like Gen Korean BBQ are becoming more prominent in malls, offering customers unique dining experiences that differ from traditional burger and pizza options. Gen Korean BBQ has plans to expand to at least 250 locations, highlighting the growth potential for these types of restaurants in mall settings. Smaller regional malls are rebranding their spaces to attract more restaurants, signaling a shift towards a more diverse and vibrant dining scene in malls. While it remains to be seen whether this shift in tenants will be successful long-term, the focus on new and innovative dining options reflects a broader trend towards reimagining the mall experience.
