Restaurants Are Dominating More Than Just Retail

Restaurants are driving leasing activity in the retail sector, but curated food-and-beverage experiences are becoming a cornerstone in every asset class. Real estate owners are seeing food and beverage as a way to drive value and leasing at a property. Cultivate Hospitality Group launched recently to provide expert guidance and brokerage to owners and developers looking to for unique restaurant and dining experiences. We sat down with Peter Peterson, president and managing director of Cultivate Hospitality Group, to talk about the trends in food-and-beverage and why these operators are becoming integral to creating a unique experience.

GlobeSt.com: What is driving this explosion of restaurant and food-and-beverage leasing?

Peter Peterson: There are a few things that factor into that. As a general trend, younger generations more and more want to spend their disposable income on experiential things. They are not as concerned about buying material things. Typically, with older generations, you buy a home and spend your money on things that you can touch and feel. Younger generations are looking for more experiential products. That is a shift that has played into a lot of this. It is also a maturation and an evolution of America becoming more sophisticated about food. I often make a comparison to wine. It used to be that the wine consumption in this country was very limited. Today, Americans have a sophisticated palate, and that has translated into how we consume. That has really played into the fact that people are looking into more food options and they have a better understanding of quality. I think that is one aspect.