The Best way to Shoppers’ Hearts is Through Their Stomachs

Food and shopping seem to go together as complementarily as bread and butter or a suit and tie. Shoppers enter large retail stores hungry for deals, but often leave feeling hungry for…well, food. 

It might very well be the best business decision you make by pitching your restaurant, or the idea to open up a new restaurant, within the nearest retail store near you. Don’t take our word for it though, just take a look at the following examples: Macy’s flagship store in Herald Square, Manhattan has just opened a massive, 260-seat restaurant, Ikea has launched a food empire with their world-famous Swedish meatballs and even Nordstrom’s, Saks Fifth Avenue, Roberto Cavalli, Ralph Lauren and Urban Outfitters are stepping into the F&B game by making food and drink available at some of their stores. 

Does it Work?

The trend of restaurants opening up in retail spaces was first reported by Baum & Whiteman, a restaurant consultancy. The report details how [1]“retail stores were putting shoppers in their aisles by grabbing restaurant traffic”. They noticed something called “Dwell Time”, which basically amounts to the concept that the longer a customer spends in a retail setting, the more they will eventually spend. Indeed, this idea seems to be backed up by hard evidence as [2]“According to Baum & Whiteman, Tommy Bahama’s stores with restaurants generate two-and-a-half times the sales per square foot.” This indicates that there is a great relationship to potentially be had between restaurants and retail companies. 

This tactic seems to work for a number of reasons. One being that with the onslaught of online shopping, retailers need to lure customers into their stores with a new type of experience. Baum & Whiteman president Michael Whiteman elaborates, [3]“As online retailing grows, brick-and-mortar operators need new ways to get people into their stores.” Shopping, alone, won’t cut it, since people can simply shop at home. This is one of the reasons that retail spaces seek to provide a culinary experience in addition to their shopping one. 

Many retail spaces feel that the addition of a restaurant also adds not only to the ambiance of their store, but to the level of service, as well. Michael Kaufman, who heads Fifth Dining, now runs a new restaurant called Sophie’s in Saks Fifth Avenue. He claims that, [4]“A restaurant within a store provides that next level of service to customers that retail is looking for, elevating the shopping experience.” 

Several retail spaces feel restaurants match the message or ethos of their brand, adding to a more cohesive experience for customers. For example, Paul Collette, CEO of ABC Carpet and Home in New York teamed up with chef Jean-Georges Vongerichten when deciding on a restaurant experience to perfectly complement her luxury carpet business. The meals were meant to be homely and luxurious, but also allow shoppers to rest and recharge while shopping. The restaurant was a hit and quickly evolved to include cooking demos, a line of cookware and other food-related ventures. Having opened up another restaurant in response to the success of the first, this is one example in which businesses can not only benefit, but expand from restaurants sharing their message and brand ethos. 

As we can see, food really does play a vital role in many retail spaces’ success. After all, if the saying “shop ‘til you drop” is to be believed, it might just make sense to feed shoppers so that they never drop. 

[1] http://www.marshallalan.com/index.php/news/detail/baum-whiteman-predict-the-11-hottest-fb-trends-for-2015

[2] http://www.foxnews.com/food-drink/2013/11/07/top-12-hottest-food-and-beverage-trends-for-2014.html

[3] https://www.specialtyfood.com/news/article/restaurants-retail-stores-lure-hungry-shoppers/

[4] https://www.specialtyfood.com/news/article/restaurants-retail-stores-lure-hungry-shoppers/