THE IMPACT OF F&B OFFERINGS ON RETAIL MALL PERFORMANCE

Abstract

Singapore has been experiencing a retail market decline for the past 5 years and more developers are turning to Food and Beverage (F&B) to sustain its shopping malls. Reasons for this shift include strong local food culture and the rising dining-out trend. However, many empty eateries suggest an oversupply, and a looming threshold to this strategy. This paper examines the impact of F&B offerings on the performance of shopping malls, in terms of footfall traffic and gross income. Secondary data is obtained through annual reports, and primary research is derived through interviews and survey questionnaires. Results are analysed via the one-way analysis of variance (ANOVA) and multiple linear regression. Upon evaluation, this dissertation concludes that there is a significant, positive relationship between the number of F&B outlets in the mall, and both the average frequency of mall visitations and average time duration spent per visit. Interviews with developers reveal that F&B outlets perform relatively better than other tenant types. However, it is strongly suggested that there is a mismatch in demand and supply of F&B offerings in some malls. Amongst various technological solutions adopted by F&B companies to improve business operations, the advent of digital dining reservation applications attempts to channel crowds to off-peak hours. However, results indicate limited usage of these apps, and that shoppers’ choices of mall may not necessarily be sensitive to F&B price discounts. Despite having limited mall drawing power, discounts nevertheless do bring in recurring patrons to the F&B outlets.