Growth strategies for F&B clusters, independent of the architectural envelopes they inhabit

When Future Food partners with our Clients on redevelopment projects, one of the first stages that we frequently perform is the evaluation of a proposed scheme and how F&B should be incorporated into it. Most frequently this is driven by the architectural scheme and the locating of F&B into the scheme, frequently with non-food priorities and considerations as the backdrop for the decision-making process.

However, F&B has its own set of “built in” priorities and as such adopting a scheme-driven approach frequently demonstrates a recurring set of issues.

F&B Built-in Priority No. 1: What is the growth potential (positive & negative) and how will this be factored into the project throughout its lifetime?

Frequently the result is one of two outcomes:

The volume of food set out for a redevelopment is too small relative to demand. This results in an inability of F&B retailers/restauranteurs to meet demand and customer experience is usually diminished. Subsequently potential revenues are not realised, rental return is not commensurate with potential and asset value is not optimised.
The volume of food set out for the redevelopment is too great. Inadequate customer volume for the number of F&B retailers/restauranteurs. Retailers are not able to retain profitable businesses; many may be forced to close their doors permanently and customer experience is usually diminished. Subsequently potential revenues are not realised, rental return is not commensurate with potential and asset value is not optimised.

Notice how the last line of both of those outcomes is the same!

It is therefore imperative that any F&B redevelopment is considered against the revenue potential for the site, the likely volume of F&B customers and their frequency of spend. This translates into a considered volume of food and hospitality that can be positioned relative to your market needs/aspirations and developed with a forward-thinking approach that maximises food and hospitality in the redevelopment.

F&B Built-in Priority No. 2: Is the food and hospitality precinct fit for purpose – will it meet the requirements and aspirations of the target market?

The other issue that we frequently encounter relates to the food planning and massing set against design envelopes that are simply not designed with F&B in mind. Tenancy use is frequently an afterthought, and in addition to base build issues (such as supply of mechanical, electrical and plumbing intricacies) frequently it can be a simple as F&B offers not aligned to their target audience purchase paths, inadequate exposure for their offer, circulations and queuing errors, seating allocations are incorrect for the number of customers – the list goes on.

As an experienced food and hospitality masterplanning consultancy Future Food has worked on an array of projects, maximising their potential at every stage of the planning process.

We have recently spent some time in Auckland working with Auckland Airport and Westfield Newmarket to deliver future proofed customer-centric results.

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Auckland Airport - The allocated common area seating is laid out below capacity. It presents as a luxurious spatial allowance currently and allows the Auckland Airport a growth strategy as the volume of passengers increase throughout the intended lifetime of the terminal.