Malls are using new restaurants to draw consumers as shopping centers reinvent themselves

Group 1: Mall Industry Trends - U.S. shopping malls have seen a significant decline from 2,500 in the 1980s to approximately 700 today, largely due to the rise of online shopping and the decline of department stores [2] - Despite predictions of their demise, many Gen Z consumers prefer in-person shopping experiences, leading to a resurgence in mall popularity [3] - Developers are creatively repurposing empty department stores into housing and increasing the space allocated to restaurants and bars, which are now major attractions [3][6] Group 2: Shift in Consumer Behavior - The traditional shopping experience has shifted, with dining options now driving foot traffic to malls rather than shopping itself [4] - Yelp's report indicates that 17 of the 25 most popular mall brands are restaurants, highlighting the growing importance of food in the mall experience [4] - Restaurants now account for 20% to 30% of the total leasing area in some malls, a significant increase from 5% to 10% a decade ago [5][6] Group 3: Restaurant Dynamics - Malls are increasingly featuring upscale dining options, with a focus on "contemporary casual" restaurants that offer a higher quality experience [9] - The pandemic has made malls more attractive to restaurateurs, as foot traffic in suburban malls has rebounded above pre-pandemic levels [11] - Emerging restaurant chains are capitalizing on mall locations for rapid expansion, with examples like Din Tai Fung planning new openings in malls [12][13] Group 4: Food Halls vs. Food Courts - Food halls are becoming a popular alternative to traditional food courts, offering a more upscale dining experience with local vendors [15][16] - Eataly, a notable example, has successfully integrated into malls, providing a unique cultural experience alongside dining options [18][19] - Despite the rise of food halls, traditional food courts still perform well, with chains like Chick-fil-A showing strong sales [20] Group 5: Performance of Key Restaurant Brands - The Cheesecake Factory remains a top-performing mall brand, with shares rising 43% this year, outperforming the S&P 500 [24] - The chain has managed to avoid bankruptcy, unlike other mall staples, and is seen as a valuable tenant for mall landlords [25][26][27] - The presence of The Cheesecake Factory in malls correlates with better financial performance for those malls, as indicated by a Moody's Analytics report [26][27]