ORANGE COUNTY, CA-The internet has challenged today's retailers, owners and investors. If people are shopping at home on their computer or dialing up fashion on their smartphones will they invest the time and money to go to the still-standing brick and mortar locations? They will, when the destination is worth their time and money.
Across the country the retail industry is rethinking its approach to the consumer experience. One of the most exciting aspects of this evolution is the increasing emphasis on destination restaurants. These are locations that provide a special dining experience and in turn help to draw consumers to centers to dine and then, in turn, possibly engage with other brands and shops located nearby.
According to recent data from the International Council of Shopping Centers, restaurants at malls are outperforming those centers' fast-food outlets. Sales at mall restaurants grew 4.3% in the year that ended in May, while mall fast food purveyors posted a 0.3% decline.
Snyder Langston has been involved with a number of owners who are making significant changes to their existing centers, to realize this restaurant trend. The Irvine Co. has been a leader on this front with new additions to both its Fashion Island and Irvine Spectrum retail centers located in coastal Orange County. For example, 2014 will bring about exclusive openings at Fashion Island of Red O and Fig + Olive, among others.
These are restaurants with limited locations and in some cases, matched to celebrity chefs. Red O, from renowned chef Rick Bayless, is an upscale Mexican restaurant with bold décor featuring both authentic and California-inspired fare and artisanally-crafted cocktails. With locations in New York and Los Angeles, Fig + Olive provides an elegant Mediterranean dining experience highlighting the world's best olive oils in a variety of dishes.
It is interesting to note that both of these new dining spots will replace a former Coco's that was located on the site for many years and that has now been demolished.
The new sites bear a number of similarities that respond to what today's diner is seeking. Some of the design elements include: well-landscaped, covered outdoor seating that takes advantage of the beautiful coastal weather but also creates a streetscape that is entertaining and engaging for the retail center's other visitors; strong branded images – Red O features a large outdoor fireplace for example; high-end design and quality construction finishes that are similar to a luxury hotel or residential product – with attention to detail both throughout the building and the surrounding area.
The importance of the destination experience is also captured in the surrounding area. Details that include adjusting the traffic patterns and placing greater emphasis on the look of the hardscape and landscape along the roadways and walkways are included in the full scope of the build out. At Fashion Island, that includes the introduction of more olive trees and the use of pavers within the nearby crosswalks and walkways. In this way the owner and restaurants are taking into account not just the diner's experience when they enter the building but as they travel up to the location and are walking in and around the site.
Looking ahead we imagine more owners will place greater emphasis on bringing a unique destination experience to their center in order to bring the shopper to their door.
Stephen Jones is chairman and CEO of Snyder Langston. The views expressed in this column are the author's own.
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