Food & Entertainment - the perfect duo

Malls are gaining importance these days because of the entertainment they dole out to the people. Maximum people come to malls not to shop, but to enjoy and relax. So even if they don’t shop, they would definitely eat or engage in recreational activities. People who wish to enjoy a wholesome family experience prefer to go to malls where they can sit at food courts and enjoy their meals, while their children can enjoy at the entertainment zones. So, food courts and entertainment centres are the mass pullers in a mall. But have you ever wondered which one would be more favourable for the success of a mall?  Let us try to analyse the potential of both these formats.

Foodie’s delight

Food is one of the main attractions in a mall. The food experience at a mall draws a lot of populace to it. People who come just to visit the mall do at many times end up grabbing a bite at the food courts. Viability and location are what it will ultimately boil down to, when setting up a food court. Traditional Indian food too is taking up space in food courts, besides the international players.  By 2011, about 200 million sq.ft additional gross leasable area (GLA) will come up within malls. Of this, approximately 15 million sq.ft will be devoted to food courts or catering services.

Entertainment unlimited

Entertainment is the second fastest growing organised retail category. The segment is on a rise and its presence is ever increasing. Sonaal Chopra, CEO, Timezone Family Entertainment Ltd says, “The current market size of the FEC is tagged at Rs 48 Crore (approx.).” While telling about the number of entertainment centres present in the country, Ashish Gupta, Country Manager, Funcity articulates, “Currently, there are around 100 small, mid and large sized entertainment zones across various shopping malls in the country. Going forward, we see the sector getting more organised with the participation of major corporate companies and expect the number to double over the next two years.”

So, both food courts and entertainment centres have the potential to be the forerunner. But the way they are planned is what can make all the difference.

The difference

There are several factors that determine the success of the food courts and FECs, if they are given due consideration. These factors help them work better for a mall. These should be analysed while deciding what a mall needs.

Location

Whenever you talk to mall developers and ask them to tell you the most important aspect for constructing a mall, they always say location, location and location. So, the first and foremost factor is location. The location of a mall plays a vital role in defining the success of the food courts and FECs present in it. Every city has its own parameters and this aspect differs from city to city as well. In cities like Bengaluru and Pune, the food courts and the FECs are doing extremely well, the reason being more inhabitation by the student crowd and  amalgamation of various cultures. But if a mall is opened at a place where there is no young crowd, both these may end up as failures.

Local influence

Nevertheless, in certain tier II and tier III cities, we have seen food courts surviving, as the local crowd has more fondness towards the local food available elsewhere, while on the another hand, food courts in some of the tier II and III cities are doing extremely well also. The reason for their success lies in the local affinity and predilection which needs to be kept in mind while setting up the food court. FECs can be crowd pullers irrespective of any local factors.

Other factors like the brand mix and the catchment area near the mall also facilitate the prosperity of a mall. Rohtas Goel, CMD, Omaxe Ltd says, “A combination of both, food courts and entertainment zones provides an enchanting experience and bring lots of enthusiasm to everyone’s life. Depending upon the location, target audience, types of brands, etc their importance may vary from mall to mall.” Therefore, like any other venture, to be successful, every mall needs to carry out thorough research and planning before deciding upon its features.

Equivalent significance

Both food courts and FECs play a vital role in the functioning of a mall. When clubbed together, they formulate a substantial amount of contribution in attracting people, over and above generating revenues. According to Dharmesh Jain, Chairman and Managing Director, Nirmal Lifestyle Ltd, “Food courts and entertainment zones contribute around 25 per cent of revenues at Nirmal Lifestyle.” Both play a complementary role for each other. First, may be, one plays and then, when he feels hungry he goes to the food court to grab a bite or may be, on the other hand, first he may eat and then enjoy playing at the entertainment zones.” This is precisely the reason why we find most of the food courts and FECs located together.

Further, Jain says, “The mall entertainment business is worth more than Rs 1,000 crore and is growing at an average rate of 15 per cent. Entertainment zones in malls have become a favourite hangout for families willing to spend quality time together. It’s a common trend observed that food and entertainment go hand in hand. Their existence is virtually insignificant and inefficient without each other, particularly in a mall. People expect a package deal.  Entertainment without food is incomplete and food without fun is incomplete.”

Agreeing, Chopra feels, “Both food court and FECs are interdependent, fashion driven and successful.” Nevertheless, Gupta feels, “It’s a very unfair comparison. Both food courts and entertainment centres are essential activities in a mall and complete the customer’s overall experience. All Funcity centres are located adjacent to the food courts specifically and we firmly believe that the success of both the food courts and entertainment centres depends on each other.” These two options in malls generate a great deal of business during the weekends, which no other format does. Sudeep Agarwal, MD, Shri Group tells, “Through Monday to Friday, food courts and entertainment zones do average business, but on weekends, public holidays, during summer vacations or winter vacations they do brisk business and both of them are an integral part of the mall in India.” Raj Singh Gehlot, Chairman & MD, Ambience Group says, “At Ambience Mall, we have an entire third floor dedicated to food courts and entertainment zones. Having both inside, the mall provides a wholesome experience for the mall visitors, and lets them enjoy their time-out along with the whole family. In terms of generating revenues, both food courts and entertainment zones contribute not only directly but indirectly as they make people stay longer inside the mall, promote revisits and encourage loyalty to the mall.” Having a different opinion and stating his views, Sunil Bedi, CMD & Director, JMD Group says, “We feel that food courts are always a better option as they drive in more people in the mall.” However, it still is quite a difficult choice to be made by a mall owner. 

In times to come

As per industry experts, both food courts and entertainment centres will do equally well for a mall and will be an essential part of it. Commenting, Bedi says, “Both have their own justifications to be necessary in any mall.” It is not just a market speculation but is bound to happen. Jain tells, “As per various researches conducted and the trend seen over the years, both the categories are bound to do well. Both are ordained to grow.” Goel articulates, “In times to come, to ensure mall competitiveness, a combination of both, food court and entertainment zones holds a very good potential. The concept of malls is incomplete without the enticing aroma of food joints and a dedicated entertainment zone which exhibits thrilling games and many more such enthralling choices.”  Gehlot says, “Different age groups behave differently in space, entertainment and food, and a mall must cater to all ages, tastes, etc. Therefore, a developer needs to cater to diversified interests in a mall and this is where entertainment zones and food options become important.”

Fun and food always go together and this adage has been proved to be true, time and again. Malls have also lived up to it till now and always will!