INFLUENCE OF FOOD COURT ON THE SUCCESS OF A SHOPPING MALL

Abstract

Starting out as a novelty from the West, food courts have progressed from a modest start-up in Scotts Shopping Centre to become an integral part of shopping malls in Singapore. Spiralling out from malls in the city centre, they are now permanent fixtures in almost every suburban mall.

This dissertation attempts to examine the influence of the food court on the success of a shopping mall, and to see if the inclusion will affect other tenants’ decision to operate in the mall. Food courts and shopping malls appear to share a symbiotic relationship – crowd from the food court can be funnelled through the shopping mall, and vice versa.

A detailed study of four malls revealed that while a symbiotic relationship exists between the two, the food court is no longer a strong determinant of the success of a mall. The presence of a food court is effective in drawing crowds but it does not have a direct impact on the sales and revenue of the mall. The food court is facing stiff competition from other food and beverages competitors and is surviving only because of its practical function – convenient and affordable. It is no longer a main determinant that will affect people’s decision to patronise a particular mall. In order to remain sustainable, there ought to be more coordinated effort between the food court operator and the mall for joint marketing and promotional strategies to achieve better results for the shopping mall as a whole.