Food & Beverage tenants are taking up more spaces in malls
Food and Beverage (F&B) tenants are starting to take up more spaces across the country’s shopping malls. Is it because of our growing appetite for food? Perhaps.
In his latest report, real estate expert David Leechiu linked the growth in F&B sector not exactly to people’s increasing appetite for food— which has already been the case for so long— but to our desire to experience new things, while seeing our monthly income somehow grow.
Leechiu described this as the “changing retail landscape” in the Philippines.
“Malls and other commercial centers have seen a 40 percent increase in the share of their food and beverage (F&B) tenants as consumers are starting to invest in experiences rather than material things (i.e. dining out, traveling, etc.),” Leechiu, who owns the Leechiu Property Consultants Inc., said.
Today, the food industry now comprised 60 percent of the malls from only 20 percent in the past years, while retail shops are getting smaller and now occupying 40 percent of the mall from a whooping 80 percent.
This is why, Leechiu said the malls in the country won’t shutdown like the ones in the United States.
Besides, in terms of income, there’s now a wide range of people going in and out of the malls who are earning between US$500 to US$3,000 income.
“There’s massive change in lifestyle because of wealth creation. That’s the massive economic difference between Philippines and US,” Leechiu said.
An official government data also showed that food establishments— alongside with hotels since they are usually measured in one category— have really been increasing over the years as they become more profitable.
Based on a data from the Philippine Statistics Authority (PSA), food and accommodation establishments in the Philippines have been seeing significant increases in their annual net incomes.
Overall, restaurants and hotels have gained an average gross profit of P9.6 million in 2015, with restaurant, bar and hotel owners as well as caterers in Metro Manila earning more compared to those in other regions.
During that year, food and accommodation businesses in the National Capital Region alone netted P14.94 million per establishment, 56 percent higher than the national average.
Central Luzon came next after earning an average of P7.5 million per establishment.
The survey included enterprises under the following industries: short-term accommodation activities (hotels, motels, etc.), restaurant and mobile food service activities, event catering and other food service activities, and beverage serving activities (bars, coffee shops, etc.).